Americans fear outliving savings but make costly retirement mistakes

The Schroders 2026 U.S. Retirement Survey reveals that over half of working-age Americans fear outliving their retirement savings, yet their financial decisions frequently undermine long-term stability. According to the findings, 52% of non-retired adults describe themselves as either “concerned” or “very concerned” about running out of money during retirement. This anxiety is justified, but many take steps that worsen their financial outlook.

A major inconsistency appears in Social Security planning. While 69% understand that delaying benefits until age 70 yields the highest monthly payouts, only 10% intend to follow that strategy. Instead, 45% plan to claim benefits before reaching the full retirement age of 67. Their motivations vary: 45% require income earlier, 43% seek immediate access, and 40% harbor fears that Social Security could become insolvent or stop making payments.

Deb Boyden, head of U.S. defined contribution at Schroders, emphasizes that emotional decisions often override reasoned financial planning. “Knowing your income, spending needs and whether your investments match these needs will provide clarity that leads to better decisions on how to maximize Social Security,” she states.

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Non-retired Americans estimate they need $5,094 each month for a comfortable retirement, a slight increase from last year’s $5,032. Their main fallback strategies include cash reserves (55%), workplace retirement accounts (48%), and investment income (33%). Just 16% said they “definitely” expect to replace at least 75% of their last paycheck with retirement income, compared with 15% who said “definitely not” and 32% who said “probably not.” Most non-retired Americans (56%) find the idea of no more regular paychecks “concerning,” and 20% describe it as “terrifying.”

Retirees already handling these challenges offer a sobering perspective. Sixty-four percent regret not planning more before leaving the workforce, and 58% admit uncertainty about how long their savings will last. Half lack structured income strategies, instead relying on systematic withdrawals from retirement accounts (26%), certificates of deposit (20%), or dividend-producing stocks or mutual funds (20%). Boyden points out the core issue: “Planning for retirement isn’t just about how much you save, it’s about knowing how you’ll turn that savings into a reliable income stream.” Without this approach, even significant nest eggs can deplete faster than anticipated.

Workplace retirement plans remain the most critical asset for most Americans. Seventy-four percent of non-retired participants consider their plan their most valuable resource, and 85% of those with income products intend to keep assets in the plan after retirement. Ninety-one percent would be interested in a retirement investment product from their employer that actively manages the risk of loss while seeking to grow assets at a rate equal to the current cash rate plus 5%.