Schroders’ spring survey of 1,500 investors, including 615 workplace retirement savers, reveals a striking mismatch between retirement savings goals and expectations. This gap highlights structural challenges in Americans’ financial planning amid rising costs.

On average, savers believe they need $1.2 million for a comfortable retirement, yet half anticipate retiring with under $500,000, and only 30% expect to reach $1 million. Investment allocations show a cautious stance: stocks represent 27%, cash 26%, bonds 17%, with the remainder in target-date funds, private equity, or other assets. Over half cannot save 10% of their income, and a third carry credit card debt exceeding their retirement savings. As Deb Boyden, Schroders’ head of U.S. defined contribution, notes, “retirement savings isn’t the only financial priority competing for attention,” underscoring competing demands on household finances. Many hold cash to avoid market losses or await better stock-buying opportunities, despite warnings about the opportunity cost.

While the survey stops short of prescribing solutions, it paints a clear picture of strained retirement readiness amid inflation and market uncertainty.

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By Daniel de Visé, USA TODAY

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