For many, retirement is painted as the golden season of life — travel, hobbies, and well-earned rest. But a new 2025 Schroders U.S. Retirement Survey reveals a more sobering reality: while only 5% of retirees say they’re “living the dream,” nearly 19% admit they’re “living the nightmare.”
That gap highlights a critical issue: most Americans simply don’t have enough saved to fund the retirement they envisioned. Northwestern Mutual research shows people believe they’ll need $1.26 million for comfort. Yet Fidelity reports the average 401(k) balance for those 70 and older is just $250,000 — and Federal Reserve data says only 3.2% of retirees hold more than $1 million.
Why Retirees Are Falling Short
The survey points to three major pressure points:
- Inflation: More than 80% worry about shrinking buying power, with nearly half saying their everyday costs are higher than expected.
- Healthcare costs: A 65-year-old retiring in 2025 can expect to spend about $172,500 on medical care — and many assumed Medicare would cover more than it actually does.
- Longevity fears: Over 60% don’t know how long their savings will last, while 70% worry about outliving their nest egg entirely.
How You Can Safeguard Your Future
If you’re still working, you can sidestep the nightmare with a proactive plan:
- Know your number: Aim for at least 10 times your final salary or 25 times your annual spending.
- Set milestones: Use calculators at Investor.gov to break big goals into achievable monthly targets.
- Maximize accounts: Take advantage of employer 401(k) matches, IRAs, and tax-efficient investments.
- Protect yourself: Build an emergency fund and stay alert for scams targeting retirees.
The bottom line? Retirement isn’t just about saving a lump sum — it’s about planning for inflation, health costs, and the unexpected. With foresight and smart strategies, you can increase the odds of turning your golden years into a dream rather than a nightmare.
