Retirement savers face a goal of $1.28 million and fear missing out by saving just $500,000.

In the 2025 American Retirement Survey, Schroders found that many Americans are nowhere close to reaching the $1.28 million they say they will need to retire comfortably. Just under half (48%) of the 1,500 people surveyed expect to have less than $500,000 saved for retirement, while a quarter (26%) struggle to reach even $250,000.

The survey of 1,500 Americans confirms what many already suspected: that most people are falling far behind in saving for retirement. But the financial planners we consulted say that no matter what stage you’re in, there’s plenty you can do to keep yourself busy.

Is $1.28 million really necessary?

Schroders’ figure of $1.28 million is consistent with the results of other surveys. For example, Northwestern Mutual’s 2025 Planning and Progress Study found that the average American believes they will need slightly less, $1.26 million.

These numbers may shock you, but that’s why they make sense. If you retire at 65 and live to be 85 or 90 — which is increasingly common — you’re financing 20 to 25 years without a salary. Health care costs typically rise as you age, daily expenses rise, and today’s dollars won’t extend nearly as much as decades from now.

However, this is just an average. What you’ll need to live comfortably in retirement may be much 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 set what your goal should be,” said Lawrence Sprung, a certified financial planner in Hauppauge, New York.

Why so many Americans saved so little

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

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

A lot has changed in recent decades. Your parents or grandparents may have had pensions, where their companies funded their retirement. Today, that burden often falls on your shoulders, and you carry it as housing costs rise, college loan debt haunts millions, and everyday expenses continue to rise.

Strategies to close the retirement gap

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

Contribute immediately

The main advice financial planners give to people who have fallen behind on saving for retirement is to stop waiting for the perfect moment. The key, Sprung says, is to start saving as much as possible by “evaluating your expenses with a scalpel and cutting out unnecessary items” and investing money right away rather than waiting.

McCullough said she realizes that saving isn’t easy, and she often reminds clients that every little helps. “People often think that saving a small amount won’t make a difference,” she said. “For example, if they can’t save $1,000 a month, what’s the point? But I say, save everything you can.” “Make sure you have some cash for emergencies, but for long-term money, invest it.”

Work longer

No one dreams of working longer, but this may be the best move for you. Every extra year of full-time work “makes a huge difference in your egg balance,” says McCullough.

This does not necessarily mean staying in a demanding job until the age of 70. Even working a part-time or low-paying job during retirement can make the difference between living comfortably and struggling financially.

Bottom line

Not having enough savings for retirement is common. The onus is now on employees to save money for retirement, and many are either struggling to do so or not thinking far into the future.

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