Retirement Savers Confront $1.28 Million Goal and Fear Missing It by Saving Only $500K

In its 2025 U.S. Retirement Survey, Schroders found that many Americans are nowhere near reaching the $1.28 million they say they’ll need to retire comfortably. Just under half (48%) of the 1,500 people surveyed expect to save less than $500,000 for retirement, with a quarter (26%) struggling to reach even $250,000.

The survey of 1,500 Americans confirms what many already suspect: most people are dramatically behind in saving for retirement. But financial planners we consulted say no matter what stage of life you’re at, there’s a lot you can do to get caught up.

Is $1.28 Million Really Necessary?

Schroders’ $1.28 million figure aligns with the findings of other surveys. For example, Northwestern Mutual’s 2025 Planning and Progress Study found that the average American thinks they’ll need a bit less, $1.26 million.

These figures might make your stomach drop, but here’s why they make sense. If you retire at 65 and live to 85 or 90—which is increasingly common—you’re funding 20 to 25 years without a paycheck. Healthcare costs typically spike as you age, everyday expenses are climbing, and today’s dollar won’t stretch nearly as far decades from now.

However, that’s just an average. What you’ll need to live comfortably in retirement could be far less (or more) depending on where you live, your lifestyle, and the Social Security benefits you’ll receive.

“Forget what the average American needs as their goal and determine what your goal needs to be,” said Lawrence Sprung, a Hauppauge, New York-based chartered financial planner.

Why So Many Americans Have Too Little Saved

The main reason behind the retirement savings gap is that many people begin late and don’t save enough. Sometimes that comes down to not knowing how to save for retirement. But more often, it’s because there’s simply no money left after paying for life right now.

“Life is complicated, and expensive, and it’s really hard to economize today in favor of a distant, uncertain future,” Stephanie McCullough, a financial planner based in Berwyn, Pennsylvania, told Investopedia.

Much has changed in recent decades. Your parents or grandparents may have had pensions—their companies funded retirement for them. Today, that burden very often sits squarely on your shoulders, and you’re carrying it as housing costs have exploded, college loan debt haunts millions, and everyday expenses keep climbing.

Strategies To Bridge the Retirement Gap

Turning $500,000 or less into enough money to retire won’t be easy, but it’s possible if you start right now.

Contribute More Immediately

The main piece of advice financial planners give people who are behind in saving for retirement is to stop waiting for the perfect moment. The key, says Sprung, is to begin saving as much as you can by “evaluating your expenses with a scalpel and cutting unnecessary items out” and investing the money right away rather than waiting.

McCullough said she recognizes that saving isn’t easy and that she often reminds clients that every little bit helps. “Often folks think that saving a small amount won’t make a difference. Like if they can’t do $1,000 a month, what’s the point? But I say put away whatever you can,” she said. “Make sure you have some cash for emergencies, but then for the longer-term money, invest it.”

Work Longer

Nobody dreams of working longer, but it might be your best move. Every extra year working full-time “makes a big difference in that nest egg balance,” according to McCullough.

This doesn’t necessarily mean staying at a demanding job until 70. Even a part-time or lower-paying job during retirement could make the difference between living comfortably and struggling financially.

The Bottom Line

Not have enough saved for retirement is common. The onus is now more on employees to squirrel away money for retirement, and many of them are either struggling to do this or not thinking that far into the future.

If you’re in this situation, experts advise increasing your contributions immediately, even if it means making sacrifices, and considering working longer, whether that means staying on at your current job for longer or finding part-time jobs and side hustles to raise extra cash.