Many Workers, Retirees Believe $1M Needed in Retirement Savings, but Save Far Less
Multiple surveys reveal a common belief that at least $1 million is needed to retire comfortably and that feelings of anxiety around retirement have increased.
Retirement expectations have surpassed the reality of savings, and the majority of survey respondents said they are grappling with the idea of comfortability during retirement.
In a survey of 1,000 retirees by Clever Real Estate Inc., which released the results on Monday, about 40% of retirees said they believe they need at least $1 million to retire. The average surveyed retiree reported having $288,700 in savings but believed $823,800 is presently needed to retire. At the other end of the spectrum, 29% of respondents said they did not have any retirement savings at all.
In last year’s report, surveyed retirees believed an average of $580,310 was enough to retire. Average retirees’ savings were $308,040—$20,000 higher than this year.
Less Optimism
In the “Allianz Life Quarterly Market Perceptions Study 2025 Q4,” released on January 13 by the Allianz Center for the Future of Retirement, 51% of surveyed U.S. adults said they had either stopped or reduced their retirement savings in the past six months due to the current economic environment.
Compared to last year’s study, fewer respondents were optimistic about their financial future, and 66% said they had not been able to contribute to their savings as much in the preceding six months due to the current economic environment. In the same period, 47% of respondents said they had to dip into their retirement savings.
“While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long run,” wrote Kelly LaVigne, vice president of consumer insights at Allianz Life, in a statement.
Fear at All-Time High
Similarly to the findings of Clever’s report, the “Retirement Readiness Report” by Betterment LLC revealed that 48% of surveyed U.S. workers reported they would need at least $1 million to retire comfortably, up from 37% in 2024.
Financial anxiety and fear toward retirement among U.S. workers has also increased, according to Betterment: 90% of respondents in 2025 reported feeling anxiety over finances, up from 71% in 2022. Among Betterment’s respondents, 58% of women workers and 48% of men workers had considered delaying retirement.
Similarly, Clever’s report found that nearly two-thirds of surveyed retirees (64%) said the U.S. is in a retirement crisis, and only 41% said they believe retirement will be possible for the typical American in 25 years. Fifty-five percent of retirees said they were prioritizing preserving their finances, rather than enjoying retirement.
Low Confidence
A separate report released in December 2025 by the Transamerica Center for Retirement Studies, “Retirement Realities: The Experience of Retirees,” found that about one-quarter of surveyed retirees (27%) reported feeling confident they could maintain a lifestyle they considered comfortable throughout their retirement.
“Retirees are settling into a new chapter in life,” Transamerica Institute CEO Catherine Collinson said in a statement. “However, many departed from the workforce prematurely and, possibly, abruptly.”
More than half of surveyed retirees (52%) had retired sooner than planned, with reasons including employment-related issues (47%) and personal health-related issues (40%).
However, Transamerica’s report revealed a more optimistic view of retirement: 44% of respondents indicated they enjoyed life in retirement, and 41% said they were happier since they retired. Almost nine out of 10 (89%) surveyed retirees considered themselves to be generally happy people.