Less than a fourth of Americans expect to save the $1.1 million estimated to be necessary to retire comfortably, according to the 2022 Schroders U.S. Retirement Survey.
Many retirees participating in the survey (44%) noted that expenses in retirement are higher than they expected, whereas 8% said that expenses are less than they anticipated.
When Schroders surveyed 1,000 workers mid-February, 22% of respondents said they were comfortable with their retirement finances. That’s down from 26% the previous year.
Fifty-six percent of those surveyed said they expect to have less than $500,000 saved by the time they retire, including 36% who anticipate having less than $250,000.
The major concerns facing retirees and those nearing retirement are inflation that lessens the value of their assets (65%), higher-than-expected healthcare costs (64%) and a major stock market downturn that would significantly reduce their assets (53%).
“There’s no question that rising inflation and market volatility have taken a toll on Americans’ belief in being able to achieve a financially comfortable retirement,” stated Joel Schiffman, head of intermediary distribution at Schroders. “However, we can’t afford to let these challenges derail our focus on retirement saving and planning. Eliminating financial stress and worry in retirement starts with staying disciplined in your savings in good times and bad.”
