"There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have," says Deb Boyden, head of U.S. defined contribution at Schroders. "This could be from a lack of planning, or for many it might just be too hard to save and invest enough to reach their retirement goals. The fact that, once again, so few Americans nearing retirement are confident they have enough money speaks volumes about the work we still need to do.  All of us, from employers to advisers to our industry, must do more to make it easier for American workers to reach retirement security."

The findings of the study paint a picture of Americans with a lot of uncertainty and more than a little anxiety about their money situation.

The survey found that 69 percent of those ages 45 and up worry about money every day—for 1.6 hours a day, on average, which adds up to 24 full days a year. More than half (59%), said they expect to have less than $500,000 saved, including 34 percent who forecast less than $250,000 in savings entering retirement.

Millennials (ages 27 to 42) are even more concerned: Eighty-five percent said they worry about money every day, for 1.9 hours on average, adding up to 28 full days a year. Millennial workers expect they will need about $1.3 million, on average, to retire comfortably, but only 29 percent said they expect to reach $1 million in retirement savings.

In addition, 49 percent of millennials said they have lost sleep worrying about their financial situation (40% for workers 45 and up), and 64 percent of millennials are concerned that financial stress will negatively affect their overall health (53% of workers 45 and up). Older workers are a bit more concerned about the performance of their retirement plans—half of them (50%) said their retirement plan performance in 2022 caused them anxiety (48% for millennials).

According to Joel Schiffman, head of Strategic Partnerships at Schroders, these concerns are leading workers to hold on to too many of their assets as cash. He said that millennials in the survey reported 33 percent of their retirement assets are sitting in cash; older workers are not far behind, with 29 percent of their retirement savings in cash.

"When asked why they are holding so much cash in their retirement accounts, 62 percent of working millennials and 66 percent of older workers said it was because they are afraid of losing too much money if the stock market goes down," Schiffman says. "Fear isn't a retirement investment strategy for workers with time horizons that span decades. Those who develop and stick to a long-term plan will put themselves in the best position possible to enjoy a comfortable retirement."

The survey found that millennials saw family (38%), financial websites/publications (23%), and their financial adviser (22%) as the most helpful sources of financial advice during 2022. When it came to older workers, 30 percent said the most helpful advice came from their financial adviser, followed by websites/publications (25%) and family (24%).

The survey also suggested that employees would like more help from their employers in this area. The survey showed that 56 percent of working millennials and 39 percent of older workers with workplace retirement plans said they wish they received more guidance from their employer on how to invest their workplace retirement plan in 2022.

"More needs to be done to improve education and help employees create asset allocation strategies that give them the confidence to stay the course through the market's ups and downs," Schiffman said. "Employers can encourage employees to save more and seek the advice of a financial adviser to set up a personalized plan that fits their financial situation and risk appetite. Companies can also provide comprehensive educational resources to strengthen their financial literacy and improve their retirement readiness."

From: BenefitsPRO