Retirement ReadinessLearn more about the state of retirement readiness and planning, key concerns regarding retirement, and where working Americans are turning for financial advice.
Just 24% of Americans nearing retirement age believe they saved enough
Schroders recently surveyed 2,000 US investors nationwide to learn more about the state of retirement readiness and planning, key concerns regarding retirement, and where working Americans are turning for financial advice.
Key findings from this research include:
- Working Americans ages 45 and older believe it will take $1.1 million in savings to retire comfortably, yet the majority (59%) expect to have less than $500,000 saved.
- The percentage of working Americans nearing retirement age (60-67 years old) who said they have enough money saved was just 24%.
- Millennial workers (ages 27-42) expect on average it will take about $1.3 million to retire comfortably, but only 29% say they expect to reach $1 million in retirement savings.
- Almost two-thirds (64%) of working millennials and 53% of older workers are concerned that financial stress will negatively affect their overall health.
Other findings regarding retirement readiness include:
- Among working Americans, 85% of millennials said they worry each day about money; and those that do spend on average 1.9 hours per day or about 13 hours a week worrying. This calculates to approximately 28 full days a year worrying about money.
- Working millennials are allocating one-third (33%) of their retirement assets to cash.
- Working millennials said family (38%), financial websites/publications (23%), and their financial advisor (22%) were the most helpful sources of financial advice during 2022.
- Older workers said the most helpful advice came from their financial advisor (30%), financial websites/publications (25%), and family (24%).
- 56% of working millennials and 39% of older workers with workplace retirement plans said they wish they received more guidance from their employer on how to invest their workplace retirement plan in 2022.
“There are profound gaps between what American workers say they need for a comfortable retirement and what they expect to have. This could be from a lack of planning, or for many it might just be too hard to save and invest enough to reach their retirement goals. The fact that, once again, so few Americans nearing retirement are confident they have enough money speaks volumes about the work we still need to do.”
Head of US Defined Contribution
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Deb Boyden, Head of US Defined Contribution