Working Americans Aged 45 + Say It Will Take $1,100,000 Saved to Retire Comfortably, but Only One in Five Will Get to a Million

Time spent worrying about money: Over three weeks per year

NEW YORK--()--For the second year in a row, working Americans ages 45 and older say on average it will take about $1,100,000 in savings to retire comfortably, according to the Schroders 2023 U.S. Retirement Survey. Unfortunately, only 21% expect to reach the $1,000,000 mark, down from 24% in 2022. More than half (59%), say they expect to have less than $500,000 saved, including 34% forecasting less than $250,000 in savings.

Millennial workers (ages 27-42) expect on average it will take about $1,300,000 to retire comfortably, but only 29% say they expect to reach $1,000,000 in retirement savings. Almost half (49%) say they expect to have less than $500,000 saved, including 27% with less than $250,000 in savings by retirement.

On the Doorstep of Retirement, Readiness Persistently Low

The percentage of non-retired Americans nearing retirement age (60-67 years old) who said they have enough money to retire was just 24%, a slight uptick from 22% in 2022.

“There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have,” said Deb Boyden, Head of US Defined Contribution, Schroders. “This could be from a lack of planning, or for many it might just be too hard to save and invest enough to reach their retirement goals. The fact that, once again, so few Americans nearing retirement are confident they have enough money speaks volumes about the work we still need to do. All of us, from employers to advisors to our industry, must do more to make it easier for American workers to reach retirement security.”

Anxiety, Lost Sleep, Health Concerns: The Real Impact of Financial Stress

Almost two-thirds (64%) of working millennials and 53% of older workers are concerned that financial stress will negatively affect their overall health.

The majority of older workers (56%) and working millennials (55%) said the 2022 stock market greatly increased their anxiety. Almost half (49%) of millennial workers have lost sleep worrying about their financial situation, as have 40% of workers 45 and older.

Millennials Spend the Most Time Worrying About Money

Among working Americans, 85% of millennials said they worry each day about money; and those that do spend on average 1.9 hours per day or about 13 hours a week worrying. This calculates to approximately 28 full days a year worrying about money.

Of workers ages 45 and up, 69% said they worry each day about money; and those that do spend on average 1.6 hours or about 11 hours each week. This amounts to approximately 24 days a year worrying about money.

Retirement Plans Contribute to Anxiety. High Cash Balances a Result?

Almost half (48%) of working millennials, and 50% of older workers with a workplace retirement plan like a 401k, said the performance of their plan in 2022 caused them anxiety.

Further, almost two-thirds (64%) of working millennials and 62% of older workers with workplace retirement plans worry they won’t be able to grow their workplace retirement plan assets to the level they hoped to achieve.

A look at how they allocate their retirement investments – including workplace plans, IRAs, or other retirement accounts – reveals a significant allocation to cash. Why? Fear of losing money.

2022 average asset allocation of retirement investments:


Workers aged 45 and older


Working Millennials






Fixed income










Target date funds










The reason the majority give for holding so much cash in their retirement accounts is safety – 62% of working millennials and 66% of older workers say they have so much cash because they are afraid of losing too much money if the stock market goes down.

Another point of concern: 38% of working millennials and 24% of older workers say they have no idea how their retirement assets are allocated.

Among those with a workplace retirement plan, more than half (59%) of working millennials said they did not change their asset allocation in those plans in 2022; 26% said they became more conservative, and 15% said they invested more aggressively. Among older workers, 65% left their allocations unchanged, 25% became more conservative, and 10% invested more aggressively.

“Given the performance of stocks and bonds last year, it’s not surprising that fear of losing money heavily influenced asset allocations, but cash shouldn’t be king, especially for millennials saving for retirement,” says Joel Schiffman, Head of Strategic Partnerships, Schroders. “Even the oldest millennial will have decades to ride out any short-term market volatility. With this long-term time horizon in mind, the benefits of working with a financial advisor to create a suitable asset allocation strategy that isn’t dictated by bouts of market volatility can’t be emphasized enough. Plus, imagine how much time investors can get back in their lives if an advisor helps give them greater peace of mind.”

Where Did Working Americans Find Helpful Advice to Deal With 2022 Market Volatility?

Working millennials said family (38%), financial websites/publications (23%), and their financial advisor (22%) were the most helpful sources of financial advice during 2022. Another 13% said social media; similarly, 13% said their employer and 7% said their workplace retirement plan provider. Only 19% did not seek out any advice.

Older workers said the most helpful advice came from their financial advisor (30%), financial websites/publications (25%), and family (24%). Another 11% said their workplace retirement plan provider and 7% said their employers. One-quarter didn’t seek out advice.

Interestingly, 56% of working millennials and 39% of older workers with workplace retirement plans said they wish they received more guidance from their employer on how to invest their workplace retirement plan in 2022.

About the Survey

The Schroders 2023 U.S. Retirement survey was conducted by 8 Acre Perspective among 2,000 U.S. investors nationwide ages 27-79, including respondents between ages 27-44 for the first time. The survey was conducted from February 13 to March 3 in 2023. The median household income for working Americans surveyed was $75,000.

For more information on the Schroders 2022 U.S. Retirement Survey, visit

Schroders plc

Founded in 1804, Schroders is one of Europe’s largest independent investment management firms by assets under management. As at 31 December 2022, assets under management were £737.5 billion (€831.3 billion; $887.2 billion). The founding family remain a core shareholder, holding approximately 44% of the firm’s shares. Schroders has continued to deliver strong financial results. It has a market capitalisation of circa £7 billion and employs over 6,100 people across 38 locations.

Schroders has benefited from the most diverse business model of any UK asset manager by geography, by asset class and by client type. Schroders offers innovative products and solutions across their five business areas of solutions; institutional; mutual funds; private assets & alternatives; and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, endowments and foundations. They also manage assets for end clients as part of their relationships with distributors, financial advisers and online platforms. Schroders’ Wealth Management offering reflects their strategic ambition to provide wealth management and financial planning services to clients across the wealth spectrum.

Schroders’ strategic aims are to grow their asset management business, build closer relationships with end clients and expand their private assets and alternatives business. Schroders’ purpose is to provide excellent investment performance to clients through active management. The business channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we deliver for Shareholders and other stakeholders.

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Jennifer Manser O’Rourke, Head of Corporate Communications, North America
+1 212 632 2947


Jennifer Manser O’Rourke, Head of Corporate Communications, North America
+1 212 632 2947