How workers are saving for retirement—and where they still need support

The first step in supporting the long-term financial needs of participants is knowing where?they?stand today. Our 2024 401(k) Participant Study offers exactly that—a deep dive into how workers across generations are planning for retirement, the challenges they face, and the support they’re looking for.

Here’s what you should know.?

Worker confidence is rising

First up, the good news. More workers are feeling optimistic about their retirement this year, with 43% now saying they’re very likely to meet their retirement savings goals—up from 37% last year. Gen X has made the biggest leap in confidence from 2023 (up 10 percentage points), while Gen Z stands out as the most optimistic overall.

Across generations, their retirement income goals haven’t changed. Workers still think they’ll need about $1.8 million for retirement and, on average, expect their savings to last 23 years after retiring at age 65.

While more workers are feeling confident, many are still uncertain and grappling with persistent challenges. Inflation and market volatility remain workers’ top concerns, though worries have eased slightly since last year. Despite the higher cost of living, workers have maintained steady 401(k) contributions, which is another encouraging sign for their long-term financial health.

This year’s uptick in optimism doesn’t imply that workers are ready to go it alone. In fact, more participants are realizing that a little help can go a long way.?

Demand for financial advice is growing

Even though most employees (92%) know how their 401(k) is invested and how it’s performing, they’re still looking for professional advice. More workers today (61%) feel their financial situation warrants guidance—up from 55% in 2023.

This growing demand for support reflects a shift in how workers are approaching their financial futures. To better prepare themselves, employees are taking more control over their retirement planning and recognizing the value of expert help. Financial education has become a key part of that process, as workers consistently want support creating income streams in retirement, setting savings goals, and making smart investment choices for their 401(k).

While digital support tools are becoming more readily available, employees across generations still prefer help from a human advisor. Younger workers may be more open to tech-based solutions, but they are significantly more likely to follow financial advice from a real person than from a computer. And when workers get that support, confidence in their 401(k) investment decisions nearly doubles (from 29% to 55%)—underscoring the value of personalized, one-on-one guidance. While this isn’t a new idea, it’s clear that having help can make all the difference.?

Income planning is evolving

As workers look ahead to retirement, their funding strategies are changing. While Social Security remains an important source of income, many people—especially younger generations—are preparing for the possibility that it may not provide as much support as it once did. Now, 43% of retirement income is expected to come from a 401(k). The remaining 57% would come from a combination of Social Security, personal savings, employer-backed accounts, and other income streams.

This shift reinforces the importance of building strong, resilient personal savings. Workers no longer expect to count on government programs alone to provide a stable retirement and are taking more control over funding their futures independently.

With this more proactive approach to retirement planning, workers are spreading their savings across multiple accounts. Diversifying not only protects against the uncertainty of relying on one income source but also gives workers more control over how and when they access their funds. Whether it’s a health savings account or a defined benefit plan, these tools can be essential parts of a well-rounded retirement plan.

Comprehensive support is the way forward

Today’s workforce is proactive, adapting to a changing financial landscape with a focus on self-sufficiency and deliberate planning. To keep their momentum going, workers need more than just a 401(k) account—they need diverse saving options and expert guidance on how to make the most of it. With the right help and resources, they can continue to make informed decisions that maximize their savings and secure the futures they’re increasingly optimistic about achieving.

Dive into more practical insights that can help you take each employee further.

About the survey

This online survey of 1,000 U.S. 401(k) plan participants was conducted by Logica Research between April 17 and May 3, 2024. Survey respondents were actively employed by companies with at least 25 employees, were 401(k) plan participants and were 21–70 years old. Survey respondents include participants served by approximately 15 different retirement plan providers. All data is self-reported by study participants and is not verified or validated. Detailed results can be found?here .

“We,” “us,” and “our” refer to Schwab Retirement Plan Services, Inc.

“Schwab” refers to Charles Schwab & Co., Inc.

Schwab Retirement Plan Services, Inc. and Charles Schwab & Co., Inc. are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Brokerage products and services are offered by Charles Schwab & Co., Inc. (“Schwab,” Member SIPC ).

Schwab Retirement Plan Services, Inc. created this communication for retirement plan sponsors and retirement plan consultants, advisors, and other retirement plan service providers and fiduciaries only. Schwab Retirement Plan Services, Inc. is not a fiduciary to retirement plans or participants and only provides recordkeeping and related services.

?2024 Schwab Retirement Plan Services, Inc. All rights reserved.

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