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<\/a><\/a>\nThis savings shortfall has 81% of plan participants at least slightly worried about running out of money in retirement. A mix of competing financial demands is impacting their retirement readiness:<\/p>
- \n
- \n69% of plan participants believe rising healthcare, utility, insurance, and housing costs have put retirement out of reach for their generation<\/li>\n
- \n55% are unable to save 10% of their paycheck for retirement due to competing expenses<\/li>\n
- \n33% report their credit card debt is higher than their retirement savings<\/li>\n<\/ul>
\nWorkplace Retirement Plans Not Always Prioritized<\/b><\/p>
\nNearly three-in-four plan participants (74%) report that a workplace retirement plan is their single most important retirement asset. However, 27% have decreased contributions to their plan, with 70% doing so in the past two years. Additionally, 27% have borrowed money from the plan.<\/p>
\nThe most common reasons for taking loans from their workplace retirement plan include:<\/p>
- \n
- \nTo bring down credit card or other debt (36%)<\/li>\n
- \nTo pay for unforeseen family or personal emergencies (31%)<\/li>\n
- \nTo keep up with the increasing cost of living (27%)<\/li>\n<\/ul>
\n\u201cRising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized,\" said Deb Boyden, Head of US Defined Contribution at Schroders. \u201cAs an industry, we can't look at retirement savings in isolation. Credit card debt, rising costs, and emergency expenses are all part of the same equation. Plan sponsors who address these realities holistically, rather than focusing on retirement savings alone, are better positioned to move the needle on retirement readiness.\"<\/p>
\nRetirement Savings Sitting On The Sidelines<\/b><\/p>
\nApproximately one-quarter of plan participants (24%) don\u2019t know how their retirement assets are allocated. Among those who do know, allocations across all retirement savings (workplace plans, IRAs, or other retirement accounts) reveal a significant portion of assets parked in cash.<\/p>
\nHow retirement investments are allocated:<\/p>
\n
\n Equities<\/td>\n \n27%<\/p><\/td><\/tr>\n
\n Cash<\/td>\n \n26%<\/p><\/td><\/tr>\n
\n Fixed income<\/td>\n \n17%<\/p><\/td><\/tr>\n
\n \nTarget date funds<\/p><\/td>
\n12%<\/p><\/td><\/tr>\n
\n \nPrivate equity\/credit<\/p><\/td>
\n12%<\/p><\/td><\/tr>\n
\n \nOther<\/p><\/td>
\n6%<\/p><\/td><\/tr>\n<\/table>
\nThe top three reasons for allocating a portion of their retirement nest egg to cash include:<\/p>
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- \nTo pursue safety, as more than half (53%) agreed with the statement, \u201cI am afraid of losing too much money if the stock market goes down.\u201d<\/li>\n
- \nTo diversify my investments (44%)<\/li>\n
- \nTo wait and watch the stock market for the right time to buy (33%)<\/li>\n<\/ul>
\n\u201cFor investors who are not planning to retire in the next five years, holding one-quarter of your savings in cash comes with a significant opportunity cost,\u201d said Boyden. \u201cConcerns about market volatility and downturns are understandable given the current macro backdrop. To alleviate these concerns, innovative new investment solutions have been developed that can lessen the impact of market drawdowns and thereby provide participants some peace of mind.\u201d<\/p>
\nMost plan participants (53%) spend at least an hour a day worrying about money, 59% are concerned that financial stress will negatively affect their health, and a majority (58%) wish they received more guidance from their employer on how to invest their retirement plan assets.<\/p>
\nFor more information visit https:\/\/www.schroders.com\/en-us\/us\/institutional\/clients\/defined-contribution\/schroders-us-retirement-survey\/readiness\/<\/a><\/p>
\nAbout the Survey<\/b><\/p>
\nThe Schroders 2026 US Retirement Survey was conducted by 8 Acre Perspective among 1,500 US investors nationwide ages 30-79, including 382 retired Americans. The survey was conducted from March 20 to April 15 in 2026.<\/p>