According to a recent survey by investment manager Schroders, American investors say they require approximately $1.2 million in savings to achieve a comfortable retirement. However, a significant disconnect exists between this target and actual savings expectations among workplace retirement plan participants.
The survey of 615 workplace retirement plan participants, conducted between March 20 and April 15 as part of Schroders’ 2026 U.S. Retirement Survey, revealed substantial challenges in meeting retirement goals. Only 30% of respondents believe they will accumulate at least $1 million before retiring. More concerning, over half of the participants—51%—expect to have fewer than $500,000 saved at retirement, with nearly a quarter projecting savings below $250,000. The findings also show that 33% of respondents carry more credit card debt than retirement savings.
Financial pressures are forcing difficult choices among workers. According to the survey, 55% of participants struggle to save 10% of their paychecks toward retirement due to competing expenses, while 69% report that rising costs have made retirement financially unattainable for their generation. Some workers have reduced contributions to their retirement plans or borrowed from 401(k) accounts to address immediate financial needs such as debt reduction, emergency expenses, and inflation-driven cost increases.
The estimated retirement savings threshold varies across surveys and over time. Northwestern Mutual’s earlier assessment placed the required amount at $1.46 million for 2026, representing a $200,000 increase from the previous year, while Schroders’ figure of $1.2 million declined from $1.28 million previously. Financial advisors suggest these figures represent approximations rather than precise calculations, noting that actual retirement needs depend on individual factors including location, lifestyle preferences, and retirement age.
Additional survey findings highlight investment strategy concerns. Twenty-four percent of workplace retirement plan participants are unaware of how their retirement savings are invested, while those who know their allocations hold approximately 26% in cash—nearly equal to equity allocations at 27%. Advisors note this cash concentration may create significant opportunity costs for workers with extended time horizons before retirement.
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