Retirement Is Far From a Dream for Most Americans
According to Schroders’ 2025 US Retirement Survey, only 5% of retirees say they are “living the dream,” while 19% describe their situation as “living the nightmare.” These figures highlight a sobering truth: retirement is no longer the carefree financial phase many envision. With pensions disappearing and healthcare costs rising, retirees face mounting financial pressure.
For those still working, especially with a decade or more before retirement, understanding today’s pitfalls can help avoid tomorrow’s regret. The earlier you act, the better your chances of financial independence in retirement.
Lesson One: Most People Don’t Save Enough
Just 40% of retirees believe they saved adequately. Almost half report higher-than-expected expenses. This reflects a deeper issue: many Americans underestimate the true cost of retirement. Whether in your 20s or 50s, competing priorities—debt, housing, family—often sideline retirement savings. But delaying comes at a cost.
The sooner you start, the more you benefit from compounding returns. Especially for those relying heavily on 401k plans, saving consistently is crucial. Monthly contributions, employer matches, and tax advantages all contribute to long-term growth, but only if you begin early and stick with it.
Lesson Two: Prepare for What You Can’t Predict
Inflation, healthcare expenses, and market downturns are the top three concerns among retirees in 2025. While inflation has cooled recently to 2.3%, retirees remember the 9% surge in 2022 and 14.7% highs in 1980. These economic swings are beyond your control, yet they can dramatically impact fixed incomes.
The solution lies in focusing on controllable elements: saving more each month, maximizing tax-advantaged accounts, building a diversified portfolio, and choosing a realistic retirement age. These factors can offer stability even in the face of economic turbulence.
Lesson Three: A “No Plan” Plan Doesn’t Work
The decline of traditional pensions means the responsibility for retirement planning now lies with individuals. Yet, 64% of current retirees don’t work with a financial advisor, and 44% lack even a basic plan to estimate expenses or set investment goals. This lack of structure leaves many unsure how long their savings will last.
While hiring a full-time advisor isn’t necessary for everyone, seeking periodic guidance can provide a clearer path to income generation and asset preservation in retirement. Structured planning doesn’t guarantee success, but winging it almost guarantees failure.
The Path Forward: Take Control While You Can
Retirement success is built on preparation and discipline, not luck. Depending solely on Social Security or hoping to “figure it out later” is no longer viable. With fewer guaranteed income sources and greater volatility, individuals must take ownership of their financial future.
Start with what’s in your control: contribute regularly to retirement accounts, adjust your investment strategy with age, and seek financial education or professional advice. Whether you’re 25 or 55, every financial decision today shapes your quality of life tomorrow.
