Survey Reveals Retirement Realities: Only 5% ‘Living the Dream’

A recent survey by **Schroders** has highlighted a troubling reality for retirees in the United States. Only **5%** of respondents reported they are “living the dream” in retirement, while a significant **19%** described their experience as a “nightmare.” This stark contrast raises concerns about the financial preparedness of many older Americans.

The **2025 U.S. Retirement Survey** conducted by Schroders reveals widespread anxiety among retirees about their financial situation. Many are grappling with insufficient savings to ensure a comfortable retirement. According to research from **Northwestern Mutual**, individuals believe they need approximately **$1.26 million** saved to retire comfortably. In contrast, data from **Fidelity** indicates that the average **401(k)** balance for those aged **70** and over is only **$250,000**, far below what is deemed necessary.

Financial Stressors Impacting Retirees

The survey identifies several factors contributing to financial stress among retirees. Inflation ranks high on the list, with over **80%** of respondents expressing concern about rising costs eroding their purchasing power. Nearly half of those surveyed admitted that their daily expenses in retirement have exceeded their expectations.

Health care costs also represent a significant burden. Many retirees find themselves facing unexpected medical expenses, which can be overwhelming. Fidelity projects that a single **65-year-old** retiring in **2025** will incur an average of **$172,500** in health care costs. Furthermore, retirees are spending an average of **15%** of their income on medical-related expenses, with many expecting **Medicare** to cover more than it does.

Long-term care insurance could provide some relief, helping to cover costs associated with nursing homes, assisted living facilities, and in-home assistance. Companies like **GoldenCare** offer various plans tailored to meet individual needs.

Strategies for a Secure Retirement

For those still in the workforce, proactive planning is essential. Understanding your retirement number—how much money you will need to maintain your lifestyle—is crucial. Financial planners recommend saving at least **10 times** your salary or calculating your expected annual expenses and multiplying by **25**. For instance, if you wish to have **$80,000** annually in retirement, you should aim for a nest egg of **$2 million**.

Breaking this goal into smaller, achievable milestones can make it more manageable. Consistently saving even modest amounts can lead to significant growth over time due to the power of compounding.

Using the right accounts and investment strategies is equally important. Starting with a **401(k)** that offers employer matching is advisable, followed by exploring **IRA** options like a **Roth IRA**. **Priority Gold**, an established name in precious metals, provides opportunities for converting existing IRAs into gold IRAs, offering various benefits including free shipping and storage for up to five years.

Consulting with a financial advisor can further enhance retirement planning. Advisors can help navigate complexities such as taxes, market risks, and unexpected costs, ensuring a comprehensive approach tailored to individual circumstances.

Preparing for retirement also involves creating an emergency fund. **SoFi** offers fee-free banking with competitive interest rates, which can help build this cushion. New account holders may even receive bonuses for setting up direct deposits.

Additionally, using a robo-investor like **Acorns** can facilitate investment by rounding up purchases to the nearest dollar, automatically investing the difference. This strategy allows even small savings to contribute to long-term growth.

The findings from the **Schroders** survey serve as a crucial reminder that retirement planning extends beyond accumulating a specific amount. With rising inflation, health care costs, and financial uncertainty, it is vital for individuals to approach retirement with foresight, flexibility, and adequate support systems in place.