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Retirement is often thought of as a time of life when you get to sit back, relax, indulge in your hobbies and enjoy the fruits of your labor. But a new survey from Schroders says that for many Americans, that’s not the case.
Schroders’ 2025 U.S. Retirement Survey [1] found that just 5% of retirees say that they are “living the dream,” while a shocking 19% say they are “living the nightmare.”
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This gap highlights a harsh truth: Many Americans are falling short of the savings needed to support a comfortable retirement. Northwestern Mutual research [2] suggests the average person believes they’ll need around $1.26 million to retire comfortably, but Fidelity reports [3] the average 401(k) balance among those 70 and up is just $250,000.
This is simply not enough for many seniors. Here’s why so many are struggling, along with how future retirees can avoid falling victim to this same fate.
Why so many retirees are struggling
The Schroders survey suggests that money stress comes from several fronts: inflation, health care and uncertainty about how long savings will last.
More than eight in ten worry about how rising costs are shrinking their purchasing power, and nearly half admit their day-to-day expenses in retirement have turned out higher than expected.
Health care is another financial stress point. Many seniors are forced into early retirement due to health crises. Fidelity reports the average cost of health care for a single 65-year-old person who retires in 2025 is $172,500, and retirees reported spending an average of 15% of their income on medical costs like insurance premiums and prescriptions, with over than half saying they thought Medicare would cover more.
This is where long-term care insurance can come in handy. This type of insurance helps cover costs, including in-home assistance, nursing homes and assisted living facilities.
GoldenCare offers a selection of different long-term care insurance plans based on your loved one’s needs. These include hybrid life, annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.
Read more: How much cash do you plan to keep on hand after you retire? Here are 3 of the biggest reasons you’ll need a substantial stash of savings in retirement
How to avoid ‘living the nightmare’
For workers who haven’t retired yet, the best defense is a proactive plan. That begins with knowing your retirement number, or how much you’ll actually need to maintain your lifestyle. Financial planners often suggest saving at least 10 times your salary or multiplying your expected annual spending by 25. If you want $80,000 a year in retirement, that means building toward a $2 million nest egg.
Once you know your goal, break it into smaller, achievable milestones. Even modest amounts saved consistently can snowball over decades thanks to the power of compound growth.
Building your savings also means using the right accounts and strategies. A 401(k) with an employer match should be your first stop, followed by IRA accounts — such as a Roth IRA or gold IRA.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
But there’s more to retirement planning than choosing the right account. The process is complex, and one of the smartest moves you can make is to consult with a financial advisor, who can help you craft a plan that accounts for taxes, market risk and unexpected costs.
Advisor.com can help connect you with a financial advisor suited to your needs and based in your area. All of their advisors are pre-vetted fiduciaries, meaning that they have a legal obligation to act in your best interest.
After inputting your ZIP code to get matched with a nearby financial professional, you can set up a free call with no obligation to hire to make sure they’re a good fit for you.
How to prepare for a comfortable retirement
Don’t forget that preparing for retirement isn’t just about saving — it’s about protecting yourself against uncertainty.
For many, that means creating an emergency cushion in a highly liquid account. A Wealthfront’s Cash Account could help build your emergency fund faster through a combination of high-interest rates and ease of access.
A Wealthfront Cash Account can provide a base variable APY of 3.75%, but Moneywise readers can get an exclusive 0.50% boost over their first three months for a total APY of 4.25% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate, according to the FDIC’s September report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, the Wealthfront Cash Account has balances of up to $16 million insured by the FDIC through program banks.
Another way to boost your savings for retirement is with a robo investor like Acorns, which can help you invest your spare change with every purchase. After signing up and linking your bank account, Acorns automatically rounds up the price of your purchases to the nearest dollar and puts the difference into a smart investment portfolio.
This means that, even if your groceries get more expensive, you can still keep your money working for you.
Acorns can also help you set up monthly automatic investments if you want to invest more aggressively. The best part? You can get a $20 bonus investment when signing up with a recurring contribution of at least $5.
The Schroders survey is ultimately a reminder that retirement isn’t just about reaching a number on paper — it’s about preparing for the realities that can upend even the best-laid plans.
With inflation, health care and uncertainty weighing heavily on today’s retirees, the survey underscores how critical it is to approach retirement with foresight, flexibility and support.
What to read next
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[1]. Schroders. “2025 US Retirement Survey: Inflation still weighs heavily on retirees”
[2]. Northwestern Mutual. “Americans Believe They Will Need $1.26 Million to Retire Comfortably According to Northwestern Mutual 2025 Planning & Progress Study”
[3]. Fidelity. “How do your retirement savings stack up?”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.