The Schroders 2024 US Retirement Survey indicates that while Americans enrolled in workplace retirement plans (401k, 403b, or 457 plans) estimate they will need $1,200,000 saved to live comfortably in retirement.  

While 46% anticipate having less than $500,000 saved, 23% stating they will have less than $250,000.

The average age at which members of the plan anticipate retiring is 63, and only 29% think they will make $1m before they retire.

 Findings

28% of plan participants lack knowledge about retirement asset allocation, with those who understand it indicating emotional investment across all investments.

66% of retirement account participants fear losing money in stock market downturns, while 24% are uncertain about investing their cash holdings.

Moreover, 70% of respondents consider their workplace plan as their primary retirement asset, while 59% desire more employer guidance on investment, and 42% are not working with a financial adviser.

49% of plan participants reported significant increase in investment portfolio value in 2023, but 40% lack protection strategies, 60% worry excessively about money, and 39% lose sleep.

Additionally, 88% of US retirement savings participants are concerned about the 2024 election, with 32% not planning changes, 32% uncertain, and 28% planning to make portfolio more conservative.

Earlier this month, Broadridge Financial Solutions, a worldwide fintech company, has entered into an arrangement with Schroders, to better protect and prioritise consumers’ requirements under the UK Financial Conduct Authority’s (FCA) Consumer Duty laws.

Fund producers like Schroders must regularly examine their products by gathering data from distributors in order to comply with the consumer duty.

To do this, Schroders is utilising Broadridge’s solution, which makes use of the Distributor Feedback Template (DFT) of the UK Joint Trade Association to gather uniform and hence comparable data on their retail-facing funds.