Schroders’ 2026 US Retirement Survey reveals that Americans with workplace retirement plans believe they need $1.2 million saved to retire comfortably.
Despite that target, 51% of plan participants expect to have less than $500,000 saved by the time they retire, according to the survey findings.
A striking 24% of respondents said they anticipate having less than $250,000 saved, representing a significant gap between retirement goals and projected reality.
Only 30% of those surveyed believe they will actually reach the $1 million savings milestone before leaving the workforce.
That widening gap between aspiration and reality has left 81% of plan participants at least slightly worried about outliving their money in retirement.
Credit card debt is compounding the problem, with one-third of respondents reporting they carry more credit card debt than they have saved in retirement accounts.
Rising costs are forcing workers to scale back their contributions, with 27% reporting they have reduced deposits into their workplace retirement plans, and 70% of those cuts happening within the past two years.
Approximately 55% of respondents said they are unable to save 10% of their paychecks toward retirement because of competing financial demands pulling in too many directions.
A full 69% of plan participants said that rising healthcare, utility, insurance, and housing costs have effectively put a comfortable retirement out of reach for their generation.
“Rising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized,” said Deb Boyden, Head of US Defined Contribution at Schroders.
Boyden added that the industry cannot treat retirement savings in isolation, noting that “credit card debt, rising costs, and emergency expenses are all part of the same equation.”
She argued that plan sponsors who address these financial realities holistically are better positioned to meaningfully improve retirement readiness among their employees.
The survey also uncovered troubling trends in how savers are allocating their retirement assets, with approximately 24% of plan participants not knowing where their money is invested.
Among those who do know their allocations, 26% of assets are sitting in cash, while only 27% are invested in stocks, a mix that many financial professionals consider too conservative for long-term growth.
Savers holding large cash positions cited safety as the primary reason at 53%, followed by diversification at 44%, and waiting for favorable market timing at 33%.
For comparison, Northwestern Mutual found earlier this year that Americans believe they need $1.46 million to retire comfortably in 2026, roughly $200,000 more than Schroders’ figure.
Schroders’ own prior survey pegged the retirement savings target at $1.28 million, meaning this year’s figure of $1.2 million actually reflects a slight decline in expectations.
Douglas Boneparth, a certified financial planner, founder of Bone Fide Wealth, and member of the CNBC Financial Advisor Council, cautioned against fixating on a single savings number.
“It’s hard to save for a future that feels abstract when the present feels urgent,” Boneparth said, recommending that savers focus instead on consistent habits like regular saving and paying down high-interest debt.
Boneparth also stressed that retirement needs differ widely from person to person, saying simply, “You may need more or significantly less. It depends.”
He noted that many workers who feel overwhelmed simply haven’t built a long-term strategy, adding, “Most people who feel stuck haven’t sat down with someone to map it out. That conversation alone tends to shift things.”
The Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide between the ages of 30 and 79, including 382 retired Americans, from March 20 to April 15, 2026.
