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If Americans are concerned they aren’t ready for retirement, there may be a good reason.

The 2026 U.S. Retirement Survey from global investment manager Schroders paints a troubling picture of retirement readiness. Rising everyday expenses, insufficient savings, uncertainty about Social Security, and even the potential impact of artificial intelligence are making retirement planning more complicated.

The survey, conducted by research firm 8 Acre Perspective between March 20 and April 15, questioned 1,500 U.S. investors ages 30 to 79, including 615 participants in workplace retirement plans and 382 retirees.

The findings reveal a significant disconnect between what Americans believe they will need in retirement and what they realistically expect to accumulate.

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A $1.2 million retirement goal that many won’t reach

Among Americans participating in workplace retirement plans such as 401(k)s, the average amount respondents believe they need to retire comfortably is $1.2 million.

But 51% expect to retire with less than $500,000, including 24% who anticipate having less than $250,000.

The survey found that 69% of workplace plan participants believe rising costs for healthcare, utilities, insurance, and housing have put retirement out of reach for their generation.

Meanwhile, 55% say competing expenses prevent them from saving 10% of their paychecks for retirement. One-third report having more credit card debt than retirement savings.

“Rising costs are forcing tough tradeoffs, and saving for retirement is often the first thing that gets deprioritized,” said Deb Boyden, head of U.S. Defined Contribution at Schroders.

The financial pressures don’t disappear when Americans leave the workforce. Among current retirees, 49% report that their expenses are higher than anticipated, while 58% admit they don’t know how long their retirement savings will last.

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Top financial concerns among retirees

Healthcare is a particularly significant expense. Retirees report spending an average of 16% of their monthly income on healthcare, including insurance premiums, prescriptions, and other out-of-pocket costs.

In addition, 58% say they expected Medicare to cover more of their healthcare expenses.

Nearly two-thirds of retirees, 64%, wish they had done more financial planning before retiring. Only 32% currently work with a financial advisor.

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Social Security and AI add new uncertainties

The survey also identified concerns that extend beyond inflation and investment returns.

Among non-retired Americans, 48% worry that artificial intelligence could disrupt their careers and force them into retirement sooner than planned.

That could have significant consequences for workers who expect to spend their final working years increasing retirement contributions and delaying withdrawals.

Social Security is another source of uncertainty. The survey found that 45% of non-retired Americans plan to claim benefits before age 67, the full retirement age for people born in 1960 or later. Only 10% plan to wait until age 70, when delayed retirement credits produce the highest possible monthly benefit.

Meanwhile, 40% worry that Social Security will run out of money before they can collect benefits.

However, a depletion of Social Security’s trust fund reserves would not mean benefits would stop entirely. Continuing payroll tax revenue would still finance a substantial portion of scheduled payments, although benefits could be reduced without legislative action.

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Many retirees lack a plan for generating income

Another important finding involves how Americans intend to turn their savings into dependable retirement income.

Non-retired respondents estimate they will need an average of $5,094 per month to live comfortably in retirement, slightly more than the $5,032 reported in 2025.

But the survey found that 51% of current retirees have no specific strategy for generating retirement income.

Among those with a strategy, common approaches include systematic withdrawals from retirement accounts, certificates of deposit, and dividend-paying investments.

The absence of a plan can be particularly concerning when retirees face unexpected expenses or market downturns.

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What Americans can do to improve retirement readiness

The survey underscores the importance of preparing for retirement expenses as carefully as saving for retirement itself.

Financial planning experts generally recommend estimating future spending needs, including healthcare and housing, and developing a strategy for withdrawing savings that accounts for inflation and market volatility.

Workers approaching retirement may also benefit from reviewing their Social Security claiming options. Delaying benefits can increase monthly payments, although the best claiming age depends on individual circumstances, including health, other income, and family needs.

For those still working, reducing high-interest debt, maintaining an emergency fund and taking advantage of employer retirement contributions can help strengthen financial security.

Despite the financial concerns, the Schroders survey offers an encouraging finding: 79% of retirees say retirement provides freedom to pursue hobbies and passions, while 68% say leaving the workforce has given them opportunities to try new things.