Ask most Americans what they need to retire, and you will hear a big number. That is the average amount people say they need to feel comfortable.
But here is the problem. Most of them do not expect to get anywhere close.
Twenty-four percent of them expect to be sitting on less than $250,000. Only 30% think they will actually reach that $1 million mark before they stop working.
That is a big gap between what people want and what they think will happen. And it is not getting smaller. In a separate survey from Northwestern Mutual earlier this year, the target was $1.46 million - up $200,000 from the year before. Schroders' own number actually ticked down a little from $1.28 million last year to $1.2 million now, but either way the message is the same: people feel like they are aiming at a moving target.
The survey points to three main culprits: rising costs, credit card debt, and everyday expenses that eat up the paycheck before retirement savings get a turn.
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A third of those surveyed actually have more credit card debt than they have in retirement savings. And 69% said rising costs have made retirement feel out of reach for their generation.
Deb Boyden, who oversees U.S. defined contribution at Schroders, put it plainly. "Many investors are just struggling to turn their good intentions into long-term retirement readiness," she said.
The pressure shows up in people's choices. Some cut back on their 401(k) contributions. Others borrow from their retirement accounts to cover emergencies or pay down debt. And a chunk of people - 24% of those surveyed - do not even know how their savings are invested.
That last part matters a lot. Among the people who did know where their money was sitting, 26% of their assets were in cash. Only 27% were in stocks. For someone with decades until retirement, holding that much cash means missing out on years of growth. Boyden called it "a meaningful opportunity cost."
Certified financial planner Douglas Boneparth, who runs Bone Fide Wealth, summed up the tension many people feel: "It's hard to save for a future that feels abstract when the present feels urgent."
The numbers can feel overwhelming. If you need $1.2 million and you are nowhere close, it is easy to throw up your hands. But the advisors quoted in the survey have a different take.
Boneparth argues that chasing a single big number is less useful than building a few good habits. Save a little every month, even if it is small. Pay down high-interest debt before you worry about maxing out your 401(k).
Start investing early so time does some of the work for you.
Boneparth said most people who feel stuck have simply never sat down with someone to map out a plan. "That conversation alone tends to shift things," he noted.
The Schroders survey also found that many savers are parked in cash because they are pursuing safety (53%), diversification (44%), or holding off until they feel the market timing is favorable (33%). Tapping into workplace retirement plan resources or talking to a financial advisor can help people understand how much risk they actually need to take.
The bottom line: The ideal number keeps changing, and life keeps throwing costs your way. But focusing on what you can control - a steady savings rate, a smart investment mix, and a little help from someone who knows the math - beats staring at a $1.2 million target you cannot reach.
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