Americans Project $1.2 Million Retirement Goal but Fall Short of Savings Targets

Americans Fall Short of Retirement Savings Goals

American workers believe they need an average of $1.2 million in savings to retire comfortably, yet a significant majority do not expect to reach that milestone. Retirement Survey released by the global asset management firm Schroders, only 30% of workplace retirement plan participants believe they will hit the $1 million mark. The survey, which polled 1,500 investors—including 615 workplace retirement savers—between March 20 and April 15, 2026, highlights a growing readiness gap. More than half of those surveyed (51%) expect to enter retirement with less than $500,000 saved. Even more concerning, 24% of respondents anticipate having less than $250,000 by the time they retire.

Participants have that million-dollar goal, but many are on a half-million-dollar savings trajectory, said Deb Boyden, head of U.S. defined contribution at Schroders.

The Impact of Competing Financial Priorities

The gap between retirement aspirations and reality is driven by persistent economic pressures. Approximately 69% of survey respondents indicated that the rising costs of housing, health care, insurance, and utilities have made a comfortable retirement feel out of reach for their generation.

These financial strains often force workers to deprioritize retirement savings. The data shows that 55% of savers are unable to set aside 10% of their salary for retirement due to competing expenses. Furthermore, 33% of workplace retirement participants reported that their credit card debt currently exceeds their retirement savings.

When faced with financial emergencies or the rising cost of living, many savers have resorted to borrowing from their retirement plans or reducing their contributions entirely. What the data is telling us is, retirement savings isn’t the only financial priority competing for attention, Boyden noted.

Investment Caution and the ‘Magic Number’

The survey also revealed a trend of “hoarding cash,” which financial experts warn may hinder long-term growth. Among the workplace retirement savers surveyed, only 56% of their assets were allocated to stocks and bonds, with 26% held in cash.

When asked why they maintained such high cash levels, 53% of respondents cited a fear of losing money in a market downturn, while 33% said they were waiting for the “right time” to buy stocks. Financial advisers typically caution against keeping excessive cash in retirement portfolios because of the significant opportunity cost of missing out on the historical returns of a diversified stock and bond mix.

The concept of a “magic number” for retirement remains a popular topic of discussion, though experts argue that these figures are often arbitrary. While a Schroders survey placed this target at $1.2 million, a separate survey published by Northwestern Mutual earlier in 2026 put the figure at $1.46 million.

Certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth, suggests that investors should focus on building consistent habits rather than chasing a specific dollar amount. It’s hard to save for a future that feels abstract when the present feels urgent, Boneparth said, emphasizing that individual needs vary based on lifestyle, location, and the timing of retirement.

Contextualizing Retirement Readiness

While the survey numbers reflect a pessimistic outlook among current workers, historical data shows that few Americans actually reach the million-dollar threshold. According to the 2022 federal Survey of Consumer Finances, the typical household in the 65-74 age range holds approximately $200,000 in retirement accounts.

Experts note that there is no universal requirement for $1 million to sustain a retiree, as many individuals rely on Social Security income or choose to adjust their lifestyles. A commonly cited, more attainable planning goal is to save 10 times one’s annual income by age 67. Based on the 2024 median household income of $83,730, this benchmark would equate to roughly $837,300 in savings.

Ultimately, the path to retirement remains highly personal. For those feeling behind, advisers suggest that focusing on reducing high-interest debt, saving consistently, and ensuring that assets are appropriately invested can help close the gap.