Americans say they need roughly $1.2 million on average to retire comfortably, but a new Schroders survey shows many don’t expect to get there — and mounting living costs and debt are forcing people to cut retirement savings first. The gap between the number people want and the balances they expect to have raises immediate questions about how households will manage a secure retirement.
Reality check: expectations vs. likely outcomes
Schroders’ 2026 U.S. Retirement Survey polled 1,500 investors nationwide between March 20 and April 15; key findings come from the 615 participants who are enrolled in workplace retirement plans. Respondents identified a target that averaged about $1.2 million, but few believe they’ll reach conventional milestones.
- 30% of workplace plan participants think they will hit at least $1 million before retiring.
- 51% expect to have under $500,000 at retirement; nearly a quarter foresee less than $250,000.
- 33% report carrying more credit card debt than retirement savings.
- 55% say they cannot set aside 10% of their paycheck for retirement because of competing expenses.
- 69% feel that rising costs have made retirement unattainable for their generation.
Those shortfalls matter now: having lower balances or borrowing from nest eggs can limit options later in life and increase reliance on Social Security or part-time work in retirement.
Why retirement saving is getting deprioritized
When budgets tighten, many households trim retirement contributions or tap their accounts to cover immediate needs. The survey found workers are cutting plan contributions and borrowing from their 401(k) accounts to pay down debt, cover emergencies or keep up with everyday expenses.
Deb Boyden, head of U.S. defined contribution at Schroders, said the pattern points to a broader problem: people often have good intentions but struggle to turn them into sustained retirement readiness.
Stop chasing a single “magic” number
Fixating on a single savings target can be counterproductive because needs differ by location, health, lifestyle and retirement age. Other industry estimates vary — one recent calculation put a comfortable target higher, around $1.46 million for 2026 — while Schroders’ own figure has shifted from previous years.
Financial advisers emphasize that steady saving, reducing high-interest debt and starting early usually move people closer to retirement security more reliably than aiming at a headline figure. Small, consistent changes compound over decades.
How your investments affect the outcome
Saving alone isn’t enough; how money is invested matters. The Schroders data show that 24% of workplace plan participants don’t know how their retirement money is allocated. Across accounts, about 26% of assets are held in cash versus roughly 27% in equities.
Holding large cash positions can create an opportunity cost over time, particularly for workers who expect to be invested for many years. Survey respondents said safety drives cash allocations, with diversification and timing also cited as reasons for keeping money out of the market.
To assess progress, most experts recommend reviewing your plan with a qualified advisor or using workplace plan educational tools. Mapping projected income and expenses into retirement — and updating that plan periodically — often produces clearer, actionable steps.
- Takeaway: Prioritize consistent saving, tackle high-interest debt, and review investment mix rather than fixating on one target number.
- Action: If you haven’t, sit down with a financial professional or use your employer’s plan resources to run a retirement projection.
Clarification: the survey’s headline statistics about retirement balances and plan behavior come from the subset of 615 respondents who participate in workplace retirement plans, drawn from the full sample of 1,500 investors ages 30–79.
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Jordan Keller specializes in analyzing the US financial markets. With concrete recommendations, he helps you secure and boost your investments by providing strategies that adapt to market fluctuations.