Half of Americans Expect Having Less Than $500K For Retirement — Here’s How To Catch Up

Nearly 48% of Americans expect they’ll retire with less than $500,000 in savings, according to Schroders’ 2025 U.S. Retirement Survey: Retirement Readiness. 

Schroders estimates that to retire comfortably, including covering things like rising healthcare costs, inflation and living expenses, many people believe they’ll need about $1.28 million. Yet, almost half expect they won’t hit even a fraction of that goal. 

Of those surveyed, 81% say they are at least slightly concerned about outliving their assets in retirement and 31% have no idea how their retirement assets are allocated in their workplace retirement plan. That uncertainty feeds even more stress: 65% of respondents believe they worry about money too much, and 56% are concerned that financial stress will negatively affect their health. 

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Why So Many Are Lagging Behind

There few reasons why so many Americans believe they’ll retire with less than $500K:

• Late starts and inconsistent saving. Many people began saving seriously well into their careers, or took breaks due to job changes, caregiving or other life events. Missing out on years of compounding can make a big difference in the amount of savings you build. 
• Rising costs of living. Everything is getting more expensive. And when most of your paycheck is going to bills, there isn’t much left for a 401(k).
• Not sure where to start. Some might know they need to save more but feel overwhelmed. Some may also assume they can get by on less than they’ll actually need.

If trends continue, a lot of retirees could potentially run out of retirement savings and have to rely more on government programs or family support. 

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How to Catch Up

If you see yourself having less than $500,000 in retirement, take these steps to accelerate your savings progress: 

• Increase your contributions. Contributing more to your 401(k), IRA or other retirement plan can add up fast because of compound interest. If your employer offers a match, make sure you contribute enough to get that free money.
• Cut down on everyday spending. If you haven’t already, review your subscriptions, dining out or other recurring costs and redirect some of that toward retirement.
• Invest. Keep a healthy mix of growth assets like stocks and more stable investments that fit your retirement timeline.
• Consider delaying retirement. If you have nowhere near enough to retire comfortably, consider delaying retirement or working part-time so your savings have more years to grow.
• Seek guidance. Use online calculators, budgeting tools or meet with a certified financial planner to help you map out a realistic retirement plan.

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