According to the 2025 U.S. Retirement Survey released by investment management company Schroders on July 15, Americans currently participating in workplace retirement plans believe they need to have $1.28 million in savings to live a comfortable retirement life.
This figure contrasts with the $1.26 million reported in the 2025 Planning & Progress Study by financial services company Northwestern Mutual.
Workplace retirement plans are set up by employers to assist employees in saving for retirement, typically offering tax advantages and investment opportunities. These plans can be either defined benefit plans (such as pensions) or defined contribution plans (like 401(k)s).
Schroders’ survey also found that only 30% of participants believe they will reach the million-dollar milestone before retirement, with one in four workplace plan participants (26%) expecting savings of less than $250,000 at retirement; nearly half (48%) say their savings will be less than $500,000.
Eighty-one percent of individuals expressed at least some concern that their assets will run out during retirement.
Among those participating in workplace retirement plans like 401(k)s, 403(b)s, or 457s, 69% stated that such plans are their most important retirement asset; only 20% said they would utilize the plan’s automatic escalation feature; and 19% have already reduced their income contribution to the plan, with 61% having done so in the past two years.
Deb Boyden, Head of US Defined Contribution at Schroders, remarked, “Saving enough money for a comfortable retirement is not something that happens by chance. If you are not consistently saving in your workplace retirement plan, it is unlikely you will achieve your retirement goals.”
Experts recommend increasing savings rates, avoiding tapping into 401(k) funds, and keeping the cash portion of retirement funds at a reasonable level.
(This article is based on reports from 401KSPECIALIST)