What today’s financial stress means for your 2026 benefits strategy
Betterment’s 2025 Retirement Readiness Report reveals the tension shaping the modern workforce—and what plan sponsors should prepare for next.
The paradox shaping today’s workforce
Our fifth annual Retirement Readiness Report reveals a workforce that has learned to navigate contradictions with a dash of optimism. Although American employees report growing financial anxiety, they’re also feeling more “retirement ready,” highlighting the growing distance between the financial reality of today and projections for their future selves.
90% of full-time employees reported feeling stressed about their finances, while 71% remain confident they’ll have enough saved for the future.
Employers are doing more than ever to help workers engage with their retirement savings, but the data shows that long-term optimism alone isn’t enough. To boost productivity and overall well-being, workers also need support for the short-term financial pressures they carry into the workplace every day.
We’ve rounded up 11 key insights to help employers meet their teams where they are in 2026. Here’s a preview of the findings.
Retirement expectations are rising faster than confidence
One of the strongest signals this year is that employees believe they will need more to retire comfortably. Nearly half now expect to need over $1 million, a sharp increase from last year’s expectations.
For employers, this creates a widening gap between what employees think they’ll need and the strategies they’re using to get there. Your retirement plan design—and how you communicate it—can help bridge that divide.
"Employees’ financial situations have improved as we move past the pandemic economy, and we're seeing that when they have more access to financial support and education—whether that’s through benefits education from HR, online resources, or advice from AI—they feel more stable." – Dan Egan, VP of Behavioral Finance & Investing, Betterment
Emergency savings are becoming essential—not optional
Short-term financial stability is beginning to carry as much weight as long-term retirement security. More employees now have an emergency fund than at any point in the past five years, and interest in short-term safety nets continues to climb.
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68% of employees report having an emergency fund, marking a five-year high and signaling growing interest in short-term financial stability. |
It’s a clear message from workers: Retirement savings alone won’t ease today’s financial strain. Employers who pair retirement benefits with short-term tools can help reduce stress, increase productivity, and build trust.
As one respondent shared, “Employers need to understand that employees want more than just a paycheck. They want benefits that build long-term financial security.”
Generational needs are diverging—and reshaping benefit expectations
The year’s report makes it abundantly clear that generations are not simply at different life stages, but are operating in different financial ecosystems altogether. Across Gen Z, Millennials, Gen X, and Boomers, Betterment found:
- 88% of Gen Z feel they have enough saved for retirement
- 64% of Millennials say they would switch jobs for stronger financial benefits
- 54% of Gen X have considered delaying retirement
- 28% of Boomers rank market volatility among their top financial stressors
When taken together, these trends show that a one-size-fits-all benefits strategy is not enough for today’s workforce. Employers who adjust their communication and benefit offerings to these generational differences will better position themselves to support employee engagement and retention.
How plan sponsors can turn insight into action
Across every trend we studied, one through-line emerged: Employees want more than a paycheck. They want support structures that help them feel secure today and confident about tomorrow. For employers, that may mean:
- Creating benefits experiences tailored to generational and work-style differences.
- Expanding financial wellness offerings to address short-term pressures.
- Enhancing education around benefits to close literacy gaps.
These themes scratch the surface of the 11 key insights that emerged in this year’s data.
See all 11 insights shaping your workforce
Our fifth annual Retirement Readiness Report goes deeper into the changing expectations, behaviors, and financial realities of today’s workforce—and what it means for your 2026 HR strategy.
