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.
Why financial planners say to stop chasing a magic number
«It’s hard to save for a future that feels abstract when the present feels urgent,» said Douglas Boneparth, a certified financial planner and president and founder of Bone Fide Wealth in New York, and a member of the CNBC Financial Advisor Council. Rising costs and credit card debt, he stressed, are not excuses — they are the reality people are navigating.
Rather than fixating on a single savings target, Boneparth recommends building consistent habits. Someone who saves regularly, works to reduce high-interest debt, and invests early «can close more ground than they think,» he said — even if their current balance sits at $12,000 while the goal is $1.2 million.
