Retirement Readiness
Learn more about how Americans with workplace retirement plans are preparing for retirement.Significant Savings Gap
Schroders recently surveyed 1,500 US investors, including 615 who participate in a workplace retirement plan, to better understand their concerns and retirement readiness. Key findings from this research include:
- Americans who currently participate in a workplace retirement plan (e.g. 401k, 403b, or 457 plan) believe they will need $1.2 million in savings to retire comfortably, yet 51% expect to have less than $500,000 in savings at retirement – including 24% who say they will have less than $250,000.
- 69% of plan participants believe rising healthcare, utility, insurance, and housing costs have put retirement out of reach for their generation
- 31% of plan participants have no idea how their retirement assets are allocated.
- Those who know how their retirement assets are allocated have about a quarter of their savings in cash.
Allocation of retirement investments by Americans who currently participate in a workplace retirement plan:
Equities 27%
Cash 26%
Fixed income 17%
Target date funds 12%
Private equity/credit 12%
Other 6%
“Rising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized.”
Head of US Defined Contribution
Additional findings:
- 74% of participants say their workplace plan is their single most important retirement asset.
- 55% are unable to save 10% of their paycheck for retirement due to competing expenses.
- 33% report their credit card debt is higher than their retirement savings
- 27% report they have borrowed money from their workplace plan.
- Most plan participants (53%) spend at least an hour a day worrying about money.
Press Release
To Retire Comfortably, Plan Participants Say They Need $1.2 Million
In the News
Featured coverage of Schroders US Retirement Survey
Contact Us
Deb Boyden, Head of US Defined Contribution
Deb.Boyden@Schroders.com