Key Takeaways<\/p>\n
According to a new survey, Americans think they’ll need $1.28 million to retire comfortably, yet about half will struggle to reach $500,000<\/a>. In its 2025 U.S. Retirement Survey, Schroders found that many Americans are nowhere near reaching the $1.28 million<\/a> they say they’ll need to retire comfortably. Just under half (48%) of the 1,500 people surveyed expect to save less than $500,000<\/a> for retirement, with a quarter (26%) struggling to reach even $250,000.\n<\/p>\n The survey of 1,500 Americans confirms what many already suspect: most people are dramatically behind in saving for retirement<\/a>. But financial planners we consulted say no matter what stage of life you’re at, there’s a lot you can do to get caught up.\n<\/p>\n Is $1.28 Million Really Necessary? <\/p>\n Schroders’ $1.28 million figure aligns with the findings of other surveys. For example, Northwestern Mutual’s 2025 Planning and Progress Study found that the average American thinks they’ll need a bit less, $1.26 million.\n<\/p>\n These figures might make your stomach drop, but here’s why they make sense. If you retire at 65 and live to 85 or 90\u2014which is increasingly common\u2014you’re funding 20 to 25 years<\/a> without a paycheck. Healthcare costs<\/a> typically spike as you age, everyday expenses are climbing, and today’s dollar won’t stretch nearly as far decades from now.\n<\/p>\n However, that’s just an average. What you’ll need to live comfortably in retirement could be far less (or more) depending on where you live, your lifestyle, and the Social Security benefits you’ll receive.\n<\/p>\n \u201cForget what the average American needs as their goal and determine what your goal needs to be,\u201d said Lawrence Sprung, a Hauppauge, New York-based chartered financial planner.\n<\/p>\n<\/p>\n Why So Many Americans Have Too Little Saved <\/p>\n The main reason behind the retirement savings gap<\/a> is that many people begin late and don’t save enough. Sometimes that comes down to not knowing how to save for retirement<\/a>. But more often, it’s because there’s simply no money left after paying for life right now.<\/p>\n \u201cLife is complicated, and expensive, and it\u2019s really hard to economize today in favor of a distant, uncertain future,\u201d Stephanie McCullough, a financial planner based in Berwyn, Pennsylvania, told Investopedia.\n<\/p>\n Much has changed in recent decades. Your parents or grandparents may have had pensions<\/a>\u2014their companies funded retirement for them. Today, that burden very often sits squarely on your shoulders, and you’re carrying it as housing costs have exploded, college loan debt haunts millions<\/a>, and everyday expenses keep climbing.\n<\/p>\n Strategies To Bridge the Retirement Gap <\/p>\n Turning $500,000 or less into enough money to retire<\/a> won’t be easy, but it’s possible if you start right now.\n<\/p>\n Contribute More Immediately <\/p>\n The main piece of advice financial planners give people who are behind in saving for retirement is to stop waiting for the perfect moment. The key, says Sprung, is to begin saving as much as you can by \u201cevaluating your expenses with a scalpel<\/a> and cutting unnecessary items out\u201d and investing the money right away rather than waiting.\n<\/p>\n McCullough said she recognizes that saving isn\u2019t easy and that she often reminds clients that every little bit helps. \u201cOften folks think that saving a small amount<\/a> won\u2019t make a difference. Like if they can\u2019t do $1,000 a month, what\u2019s the point? But I say put away whatever you can,\u201d she said. \u201cMake sure you have some cash for emergencies, but then for the longer-term money, invest it.”\n<\/p>\n Work Longer <\/p>\n Nobody dreams of working longer, but it might be your best move. Every extra year working full-time “makes a big difference in that nest egg balance,” according to McCullough.\n<\/p>\n This doesn’t necessarily mean staying at a demanding job until 70. Even a part-time or lower-paying job during retirement<\/a> could make the difference between living comfortably and struggling financially.\n<\/p>\n The Bottom Line <\/p>\n Not have enough saved for retirement is common. The onus is now more on employees to squirrel away money for retirement<\/a>, and many of them are either struggling to do this or not thinking that far into the future.\n<\/p>\n
\nYou shouldn’t get caught up in what others think they need. Set your own target based on your own situation.
\nFinancial planners advise people who are behind in their savings to start contributing as much as possible and to consider <\/a>working longer<\/a>.<\/p>\n