US savers put comfortable retirement at $1.2mn, Schroders survey says

US workplace retirement plan participants say they would need $1.2mn to retire comfortably, while a majority expect to enter retirement with less than half that amount, according to a Schroders survey. The findings point to pressure on household balance sheets from living costs, debt and near-term expenses that can limit long-term saving.

The global investment manager surveyed 1,500 investors between March and April. Only 30% of respondents said they believed they would reach $1mn in savings before retirement, Schroders said.

More than half, 51%, expected to retire with less than $500,000 saved. That figure included 24% who said they expected to have less than $250,000, according to the survey.

Debt and costs weigh on savings

Schroders said respondents cited rising prices, credit card balances and other expenses as reasons they expected to fall short. One-third of those surveyed had more credit card debt than retirement savings, according to the firm.

The survey also found that 55% of respondents said they could not contribute 10% of their pay to retirement because of other expenses. Some participants had lowered retirement plan contributions or borrowed from their 401(k) accounts to meet other financial needs, including paying down debt, covering emergencies and keeping pace with higher living costs, Schroders said.

“Many investors are just struggling to turn their good intentions into long-term retirement readiness,” said Deb Boyden, head of U.S. defined contribution at Schroders.

Retirement plan contributions defer a portion of workers’ pay into investment accounts, often through employer-sponsored plans. Reducing those contributions can ease current cash-flow pressure, but it may also reduce the amount invested over time and the potential effect of compounding returns.

The target varies by household

The Schroders figure is one of several recent estimates of what Americans believe they need to retire. Northwestern Mutual said earlier in 2026 that Americans put the threshold at $1.46mn, up $200,000 from the prior year. Schroders’ comparable figure was lower than its earlier estimate of $1.28mn.

Douglas Boneparth, a certified financial planner, president and founder of Bone Fide Wealth in New York and a member of the CNBC Financial Advisor Council, said a single headline number may not suit every saver.

“It’s hard to save for a future that feels abstract when the present feels urgent,” Boneparth said. He said rising prices, card debt and competing expenses reflected household reality rather than excuses.

Boneparth said a suitable retirement target depends on factors including where a person lives, spending patterns and the timing of retirement. “You may need more or significantly less,” he said. “It depends.”

Cash allocations draw concern

Schroders also found uncertainty over how retirement money is invested. Among plan participants, 24% said they did not know how their retirement savings were allocated.

Among those who did know, the survey found 26% of retirement account assets were held in cash, close to the 27% held in equities. Respondents who held cash cited safety, at 53%; diversification, at 44%; and waiting for a better time to invest, at 33%, according to Schroders.

“For participants with long-term horizons, excessive cash can lead to a meaningful opportunity cost,” Boyden said.

Cash can reduce exposure to market losses, but it also typically offers less long-term growth potential than assets such as equities. Schroders and the financial professionals cited said savers who are uncertain about their progress may use workplace retirement plan education resources or consult a qualified financial adviser.

This story draws on original reporting from CNBC.