Americans believe they need $1.2 million saved to retire comfortably — but the vast majority don’t expect to come anywhere near that figure. A new survey by global investment manager Schroders, conducted among 1,500 investors between March and April 2026, reveals a widening gap between retirement aspirations and financial reality, driven by credit card debt, rising living costs, and savings left sitting in cash.
En bref
- —Americans target $1.2M for retirement, but 51% expect under $500K
- —33% carry more credit card debt than retirement savings
- —26% of retirement funds sit in cash, nearly matching equities
A $1.2 million target most Americans expect to miss
The number Americans have in mind for a comfortable retirement is $1.2 million — but only 30% of workplace retirement plan participants surveyed by Schroders believe they will actually reach the $1 million mark before they stop working.
More than half of respondents — 51% — said they expect to have less than $500,000 saved by the time they retire. Within that group, 24% anticipate having less than $250,000, a figure that falls dramatically short of what they themselves consider necessary.
The gap is not new, but it is widening. Earlier in 2026, Northwestern Mutual found Americans set their comfort threshold even higher, at $1.46 million — a jump of $200,000 from the previous year. Schroders’ own figure has edged down from $1.28 million, a sign that these estimates shift with economic conditions and may reflect rough guesses as much as careful planning.
A persistent retirement savings shortfall
Retirement readiness has been a growing concern in the U.S. for years, as traditional pension plans have largely given way to individual 401(k) accounts that place the burden of saving on workers. Surveys consistently show a wide gap between what people believe they need and what they are on track to accumulate, a gap that has deepened as inflation and consumer debt levels have climbed since 2021.
Debt and rising costs push retirement savings to the back burner
The reasons savers cite for falling short are concrete and immediate. 69% of respondents said rising costs have put retirement out of reach for their generation, while 55% said they are unable to save 10% of their paychecks toward retirement because of competing expenses.
Credit card debt is a particularly telling indicator of financial pressure: 33% of those surveyed said they carry more credit card debt than they have in retirement savings. That inversion — where high-interest consumer debt outweighs long-term investment — can significantly erode a household’s ability to build wealth over time.
Faced with these trade-offs, some participants have taken more drastic steps. Several respondents reported reducing their retirement plan contributions or borrowing from their 401(k) accounts to cover emergency expenses, pay down debt, or keep up with rising living costs. «Many investors are just struggling to turn their good intentions into long-term retirement readiness,» said Deb Boyden, head of U.S. defined contribution at Schroders.
Suggested Posts
Social Security runs dry in 2032: why bond markets could crack first
Social Security's main trust fund is on track to run out of money in the fourth quarter of 2032 — and if Congress fails…
