To Retire Comfortably, Plan Participants Say They Need $1.2 Million

33% Have More Credit Card Debt Than Retirement Savings

NEW YORK--(BUSINESS WIRE)--According to Schroders’ 2026 US Retirement Survey, Americans currently participating in a workplace retirement plan (e.g. 401k, 403b, or 457 plan) think they will need to save $1.2 million to retire comfortably. However, rising costs, credit card debt, and competing expenses appear to be putting this target out of reach for many, as 51% expect to have less than $500,000 saved by retirement – including 24% who say they will have less than $250,000 saved. Just 30% believe they will reach the $1-million milestone before retiring.

This savings shortfall has 81% of plan participants at least slightly worried about running out of money in retirement. A mix of competing financial demands is impacting their retirement readiness:

• 69% of plan participants believe rising healthcare, utility, insurance, and housing costs have put retirement out of reach for their generation
• 55% are unable to save 10% of their paycheck for retirement due to competing expenses
• 33% report their credit card debt is higher than their retirement savings

Workplace Retirement Plans Not Always Prioritized

Nearly three-in-four plan participants (74%) report that a workplace retirement plan is their single most important retirement asset. However, 27% have decreased contributions to their plan, with 70% doing so in the past two years. Additionally, 27% have borrowed money from the plan.

The most common reasons for taking loans from their workplace retirement plan include:

• To bring down credit card or other debt (36%)
• To pay for unforeseen family or personal emergencies (31%)
• To keep up with the increasing cost of living (27%)

“Rising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized," said Deb Boyden, Head of US Defined Contribution at Schroders. “As an industry, we can't look at retirement savings in isolation. Credit card debt, rising costs, and emergency expenses are all part of the same equation. Plan sponsors who address these realities holistically, rather than focusing on retirement savings alone, are better positioned to move the needle on retirement readiness."

Retirement Savings Sitting On The Sidelines

Approximately one-quarter of plan participants (24%) don’t know how their retirement assets are allocated. Among those who do know, allocations across all retirement savings (workplace plans, IRAs, or other retirement accounts) reveal a significant portion of assets parked in cash.

How retirement investments are allocated:

Equities	27%
Cash	26%
Fixed income	17%
Target date funds	12%
Private equity/credit	12%
Other	6%

The top three reasons for allocating a portion of their retirement nest egg to cash include:

• To pursue safety, as more than half (53%) agreed with the statement, “I am afraid of losing too much money if the stock market goes down.”
• To diversify my investments (44%)
• To wait and watch the stock market for the right time to buy (33%)

“For investors who are not planning to retire in the next five years, holding one-quarter of your savings in cash comes with a significant opportunity cost,” said Boyden. “Concerns about market volatility and downturns are understandable given the current macro backdrop. To alleviate these concerns, innovative new investment solutions have been developed that can lessen the impact of market drawdowns and thereby provide participants some peace of mind.”

Most plan participants (53%) spend at least an hour a day worrying about money, 59% are concerned that financial stress will negatively affect their health, and a majority (58%) wish they received more guidance from their employer on how to invest their retirement plan assets.

For more information visit https://www.schroders.com/en-us/us/institutional/clients/defined-contribution/schroders-us-retirement-survey/readiness/

About the Survey

The Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 30-79, including 382 retired Americans. The survey was conducted from March 20 to April 15 in 2026.

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Schroders is a global investment manager which provides active asset management, wealth management and investment solutions, with £823.7 billion (€943.4 billion; $1107.9 billion) of assets under management at 31 December 2025. As a UK listed FTSE100 company, Schroders has a market capitalisation of circa £6.5 billion and operates across 38 locations. Established in 1804, Schroders remains true to its roots as a family-founded business. The Principal Shareholder Group continues to be a significant shareholder, holding approximately 44% of the issued share capital.

Schroders' success can be attributed to its diversified business model, spanning different asset classes, client types and geographies. The company offers innovative products and solutions through four core business divisions: Public Markets, Solutions, Wealth Management, and Schroders Capital, which focuses on private markets, including private equity, renewable infrastructure investing, private debt & credit alternatives, and real estate.

Schroders aims to provide excellent investment performance to clients through active management. This means directing capital towards resilient businesses with sustainable business models, consistently with the investment goals of its clients. Schroders serves a diverse client base that includes pension schemes, insurance companies, sovereign wealth funds, endowments, foundations, high net worth individuals, family offices, as well as end clients through partnerships with distributors, financial advisers, and online platforms.