(MENAFN- News Direct) >

This article adheres to strict editorial standards. Some or all links may be monetized.

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.”

Must Read

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 - and no, you don't have to deal with tenants or fix freezers. Here's how
• Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake - here's what it is and 3 simple steps to fix it ASAP
• No time to lower your crippling car insurance rate? Here's how to do it within minutes - you could end up paying $29/month without a single phone call

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: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B - start using them today to get rich (and then stay rich)

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.

Priority Gold is an industry leader in precious metals, offering physical delivery of gold and silver. Plus, they have an A+ rating from the Better Business Bureau and a 5-star rating from Trust Link.

If you'd like to convert an existing IRA into a gold IRA, Priority Gold offers 100% free rollover, as well as free shipping, and free storage for up to five years. Qualifying purchases will also receive up to $10,000 in free silver.

To learn more about how Priority Gold can help you reduce inflation's impact on your nest egg, download their free 2025 gold investor bundle.

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 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. With SoFi, you can get fee-free banking on your checking account. So, no fees, no monthly maintenance costs and no minimum balance requirements.

You can earn 4.50% APY on savings balances and 0.50% APY on checking balances with direct deposit or qualifying deposits too. When you set up a direct deposit, new account holders can even get a cash bonus up to $300.

Deposits are insured up to $250,000 through SoFi Bank, with additional coverage up to $2 million through the SoFi Insured Deposit Program.

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

• Robert Kiyosaki says this 1 asset will surge 400% in a year - and he begs investors not to miss its 'explosion'
• I'm almost 50 and have nothing saved for retirement - what now? Don't panic. These 6 easy steps can help you turn things around
• Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America - and that 'anyone' can do it
• 22 US states are now in a recession or close to it - protect your savings with these 10 essential money moves ASAP

Join 200,000+ readers and get Moneywise's best stories and exclusive interviews first - clear insights curated and delivered weekly. Subscribe now.

Article sources

At Moneywise, we consider it our responsibility to produce accurate and trustworthy content people can rely on to inform their financial decisions. We rely on vetted sources such as government data, financial records and expert interviews and highlight credible third-party reporting when appropriate.

We are committed to transparency and accountability, correcting errors openly and adhering to the best practices of the journalism industry. For more details, see our editorial ethics and guidelines.

[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.

MENAFN01112025005728012573ID1110280970