Americans say they need $1.2 million to retire comfortably, survey finds, but many expect to fall short
Just 30% of workplace retirement plan investors think they'll reach $1 million before retiring, a new survey finds. Here's what's getting in their way.
Americans in a new survey said they will need to save $1.2 million, on average, to retire comfortably, according to global investment manager Schroders.
Yet just 30% of the 615 workplace retirement plan participants polled as part of Schroders' 2026 U.S. Retirement Survey said they think they'll reach a $1 million savings mark before retiring, the survey said.
More than half of the workplace retirement plan participants, 51%, said they expect to have less than $500,000 saved when they reach retirement, including 24% who expect to have less than $250,000 saved, according to the survey. The 615 plan participants were among the 1,500 investors ages 30-79 who were surveyed nationwide between March 20 and April 15.
Notably, 33% of the workplace retirement plan participants said they have more credit card debt than retirement savings, according to the survey. Meanwhile, 55% said they are unable to save 10% of their paycheck toward retirement due to competing expenses, and 69% said rising costs have put retirement out of reach for their generation.
When difficult choices have to be made, retirement savings may be the first thing to be deprioritized, the survey found. Some workplace retirement plan participants have opted to reduce their plan contributions or borrow from their 401(k)s to meet other financial goals, such as reducing debt, paying for emergency expenses or keeping up with rising living costs, according to the survey.
"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.
The idea of a "magic" retirement savings number that may unlock the ideal retirement is not new.
Earlier this year, Northwestern Mutual found $1.46 million is the threshold Americans say they need to retire comfortably in 2026.
The retirement amounts people think they need may fluctuate with the cost of living, Northwestern Mutual's estimate climbed $200,000 from last year. Schroders' is down from $1.28 million. What's more, they may be only guesses.
"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. Boneparth is also a member of the CNBC Financial Advisor Council .
Rising costs, credit card debt and competing expenses aren't excuses, they're reality, Boneparth said.
If you're feeling behind on retirement savings, it can help to stop chasing a number and start building habits, he said.
While a goal like $1.2 million can feel far away when you have a balance of $12,000, someone who saves consistently, works to reduce high-interest debt and invests early "can close more ground than they think," Boneparth said.
Whether a $1 million retirement savings benchmark suits you will vary based on where you live, your lifestyle and when you retire.
"You may need more or significantly less," Boneparth said. "It depends."
To reach retirement savings goals, it helps to have that money appropriately invested.
Yet Schroders' survey found that 24% of the workplace retirement plan participants don't know how their retirement savings are invested. Of those who do know, in allocations across all types of retirement savings accounts, a significant portion, 26%, is allocated to cash, almost equal to equities, with 27%.
"For participants with long-term horizons, excessive cash can lead to a meaningful opportunity cost," Boyden said.
Those cash holdings are largely driven by the pursuit of safety, which 53% of workplace retirement plan participants cited; the desire to diversify investments, 44%; and waiting for the right time to invest, 33%.
To gauge whether you're on track toward retirement, consult a reputable financial advisor or the educational resources provided through your workplace retirement plan.
"Most people who feel stuck haven't sat down with someone to map it out," Boneparth said. "That conversation alone tends to shift things."
Clarification: This article has been updated to clarify that the survey results cited are based on the responses of workplace retirement plan participants, a subset of the 1,500 investors who participated in Schroders' 2026 U.S. Retirement Survey.
