Schroders’ 2026 U.S. Retirement Survey, which polled 1,500 investors ages 30-79 between March 20 and April 15, found a significant gap between retirement savings expectations and reality. Respondents indicated they would need an average of $1.2 million to retire comfortably, yet only 30% of the 615 workplace retirement plan participants surveyed believe they will accumulate $1 million before retiring. The data reveals concerning trends in retirement preparedness among American workers.
More than half of workplace retirement plan participants, 51%, anticipate having less than $500,000 saved at retirement, with 24% expecting to have less than $250,000. Adding to financial strain, 33% reported carrying more credit card debt than retirement savings. The survey also found that 55% of respondents cannot save 10% of their paycheck toward retirement due to competing financial obligations, and 69% stated that rising costs have made retirement unattainable for their generation.
When faced with financial constraints, workers often reduce retirement contributions or withdraw from 401(k) plans to address immediate needs such as debt reduction, emergency expenses, and cost-of-living increases. Deb Boyden, head of U.S. defined contribution at Schroders, noted that many investors struggle to translate retirement savings intentions into concrete action. The needed retirement amount varies across surveys—Northwestern Mutual found Americans believe $1.46 million is necessary, though Schroders’ estimate decreased from $1.28 million.
Financial professionals emphasize that required retirement savings depend on individual circumstances including location, lifestyle preferences, and retirement timing. Additionally, the survey revealed that 24% of workplace retirement plan participants do not know how their retirement savings are invested. Among those aware of their allocations, cash holdings represent 26% across all retirement savings accounts, nearly matching equity allocations at 27%. Financial advisors recommend consulting with professionals to develop personalized retirement strategies rather than fixating on a single target number.
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