The right retirement number is also deeply personal. It depends on where someone lives, their lifestyle, and when they plan to stop working. «You may need more or significantly less,» Boneparth said. «It depends.» A blanket figure, while useful as a benchmark, cannot substitute for an individual assessment with a qualified financial advisor.
Billions in retirement funds sitting idle in cash
Beyond the savings gap, Schroders identified a separate problem in how existing retirement funds are allocated. 24% of retirement plan participants said they do not know how their savings are invested — a significant share of people with no visibility into their own financial future.
Among those who do know, the breakdown is striking: 26% of retirement savings are held in cash, nearly matching the 27% allocated to equities. For long-term investors, that balance carries real costs. «For participants with long-term horizons, excessive cash can lead to a meaningful opportunity cost,» Boyden said.
The motivations behind those cash holdings are understandable: 53% cited the pursuit of safety, 44% said they wanted to diversify, and 33% said they were waiting for the right moment to invest. For those unsure of their next step, Boneparth offered a direct recommendation: «Most people who feel stuck haven’t sat down with someone to map it out. That conversation alone tends to shift things.»
The Schroders survey does not include a follow-up date, but the retirement savings debate is set to remain prominent as policymakers weigh potential changes to 401(k) contribution limits and tax incentives in the coming budget cycle. Open questions include whether the newly introduced Trump Accounts — which offer $1,000 deposits for eligible participants — will meaningfully shift savings behavior for lower-income households. For individual savers, the immediate decision point is whether to maintain, reduce, or increase contributions heading into the second half of 2026, as interest rates and living costs continue to shape household budgets.
