Optimism around retirement appears to be making a comeback thanks to soaring 401(K) balances. A growing number of Americans believe they’re on track to retire comfortably. However, that optimism may be creating a false sense of security.

A new report from BlackRock suggests there may be a meaningful gap between perception and reality. In its 2026 Read on Retirement survey, BlackRock found that 68% of workplace savers believe they are on track for retirement, up 16 percentage points since the survey began. Yet its analysis estimates current retirement balances may generate only 50% to 60% of the retirement income participants expect. In other words, confidence may be rising faster than retirement readiness.

The disconnect isn’t driven by a lack of awareness. Most workers know they need to save more, but many simply don’t have the capacity. Median contribution rates remain around 10%, well below the 15% participants say is needed to retire comfortably, and more than half expect they may reduce contributions over the next year due to ongoing financial pressures. Combined with recent concerns over Social Security depleting by 2032 and the growing number of Americans delaying retirement, the pressure on retirement planning continues to build.

For advisors, the challenge is helping clients look beyond account balances. Positive returns and consistent contributions can create confidence, but they don’t answer the question clients care about most: Will my savings generate enough income to support the retirement I want? It’s no surprise that nearly two-thirds of participants worry about outliving their savings, while nine in 10 want secure income options within their workplace retirement plan.

The survey also points to growing interest in new investment approaches. Nearly three in four participants said they would like access to private markets through their retirement plan, while more participants preferred actively managed target-date funds over index-based alternatives. Whether or not those solutions fit every client, the findings suggest investors are becoming more open to professionally managed strategies that may improve long-term retirement outcomes.

For advisors, the opportunity is to turn optimism into action. Reviewing retirement income projections, testing spending assumptions, and validating client expectations can help turn a retirement plan from wishful thinking, to one grounded in reality.

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