Americans Put Retirement Need at $1.2 Million as 51% Expect Under $500,000
Updated
Updated · CNBC · Jul 15
Americans Put Retirement Need at $1.2 Million as 51% Expect Under $500,000
1 articles · Updated · CNBC · Jul 15
Summary
Schroders' survey of 1,500 investors found Americans now peg a comfortable retirement at $1.2 million, yet only 30% of workplace plan participants think they will reach $1 million before retiring.
Rising costs, credit card debt and competing expenses are driving the gap: 69% said inflation has put retirement out of reach for their generation, and 55% said they cannot save 10% of pay.
Debt pressures are already reshaping behavior, with 33% holding more credit card debt than retirement savings and some respondents cutting contributions or borrowing from 401(k)s to cover emergencies and living costs.
Investment choices may also be slowing progress: 24% do not know how their retirement money is invested, and among those who do, 26% is held in cash versus 27% in equities.
The $1.2 million target is lower than Schroders' prior $1.28 million estimate but still underscores how retirement goals shift with living costs and vary widely by location, lifestyle and retirement timing.