Americans’ anticipated cost of retirement keeps going up, with many people now believing they will need $1.25 million for their golden years, according to a new Northwestern Mutual study.

At the same time, the report found that the average retirement savings has dropped 11% from $98,800 last year to $86,869. In 2020, it was $87,500.

“It’s a period of uncertainty for many people, driven largely by rising inflation and volatility in the markets,” said Christian Mitchell, executive vice president and chief customer officer at Northwestern Mutual, in a statement.

The report found that Americans are not feeling optimistic about retirement readiness. Forty-three percent said they do not expect to be financially ready for retirement when the time comes. And 45% are not banking on Social Security always being around.

The report also found that Americans extended their working years to 64 from 62.6 last year and that one-third expect to live to 100, with another third predicting that there is a 50% chance they will outlive their savings.

Even so, the report found that 36% have not proactively addressed the possibility of outliving their savings.

When it came down to what different vehicles were going to help them fund retirement, the respondents said 27% would be funded by 401(k)s or other retirement accounts, 26% would be funded by Social Security and 22% would be funded by personal savings or investments.

The report found that the pandemic has affected people’s retirement time lines, as a quarter of Americans said they plan to retire later than they had anticipated, and 15% said they plan to retire earlier.

Fifty-nine percent of those who have delayed retirement said they did so because they want to work and save more—since they had the additional flexibility of remote work. Forty-five percent said they were going to keep working because they were concerned about rising healthcare or medical costs. Twenty-six percent said they were delaying because they had been forced to dip into their savings. Twenty-four percent said they are taking care of a relative or friend. And 18% said they had lost their job during the pandemic and have to catch up.

Forty-four percent of those who plan to retire early said they wanted to spend more time with family and loved ones; 34% said they have come to realize that personal mission is more important than saving for retirement; 32% said they can afford it; 28% said they want to focus on priorities and hobbies outside of work; 22% said they either got laid off or their work situation has changed because of remote work; and another 22% said they were offered a buyout because of the pandemic.

When asked what’s more important, the study found that most adults (60%) prioritize personal fulfillment such as doing something that they care about, while only 40% named salary and income potential in their careers as more important.

“This is a really fascinating finding and one that advisors should take note of as they work with their clients,” noted Mitchell. “What people prioritize goes well beyond their bottom lines. The best advisors understand their clients’ values and motivations, not just their financial situations.”

The “2022 Planning & Progress Study” was conducted by the Harris Poll on behalf of Northwestern Mutual and included 2,381 American adults aged 18 or older who participated in an online survey in February.