Retirement Readiness
Learn more about the state of retirement readiness and planning, concerns surrounding the upcoming US presidential election, and how Americans with workplace retirement plans are allocating their assets.Magic retirement savings number is over $1 million for plan participants
Schroders recently surveyed 2,000 US investors to learn more about 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 saved to retire comfortably, yet 46% expect to have less than $500,000 in savings at retirement – including 23% who say they will have less than $250,000.
The average age at which plan participants expect to retire is 63.
28% of plan participants have no idea how their retirement assets are allocated.
Those who know how their retirement assets are allocated have significant cash positions.
Allocation of retirement investments by Americans who currently participate in a workplace retirement plan:
Equities 29%
Cash 28%
Fixed income 19%
Target date funds 16%
Other 8%
“While the magic retirement savings number is over $1 million for many plan participants, they are not saving or investing correctly to reach this goal. Without better planning and a roadmap to close the savings gap, a comfortable retirement will be out of reach.”
Head of US Defined Contribution
Additional findings:
- 70% of participants say their workplace plan is their single most important retirement asset.
- Less than half (42%) of plan participants work with a financial advisor, and 59% wish they received more guidance from their employer on how to invest plan assets.
- 88% of plan participants are concerned with how the 2024 US presidential election will impact their retirement savings.
- However, 32% say they will not make any changes to their retirement investments leading up to the election, 32% are unsure if they will make changes, and 28% plan to make their portfolio more conservative. Just 9% of plan participants expect to get more aggressive with their retirement investments leading up to November.
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More on our Retirement Survey
Press Release
Americans With Workplace Retirement Plans Say $1.2 Million Is Needed to Retire Comfortably
In the News
Featured coverage of Schroders US Retirement Survey
Contact Us
Deb Boyden, Head of US Defined Contribution
Deb.Boyden@Schroders.com