Retirement savings expectations

Retirement savings expectations are shifting, with many Americans aiming for $1 million but falling short, and market volatility impacting savings.

A recent Schroders survey found investors believe they need an average of $1.28 million for a comfortable retirement, close to the $1.26 million target in 2019. However, a Gallup poll revealed 69% of workers fear they're not saving enough. Goldman Sachs' 2025 retirement survey highlighted that those with high 'financial grit' — automating contributions, staying invested, and reinvesting dividends — saved 49% more than low-grit savers with identical incomes.

Retirement-focused financial services and investment firms may see increased demand for automated savings tools and volatility management strategies. Meanwhile, companies offering retirement plans, such as 401(k) providers, could face pressure to enhance their services to help employees better prepare for retirement.

Next, watch for the release of the 2022 Retirement Confidence Survey by the Employee Benefit Research Institute in March, and the 2022 Retirement Savings Trends report by Vanguard in April, to gauge the latest sentiment and trends in retirement savings. Additionally, monitor the performance of retirement-focused ETFs like the Vanguard FTSE Social Index Fund (VFTAX) and the iShares Core U.S. Aggregate Bond ETF (AGG) to see if investors are indeed shifting their strategies towards more automated and volatility-resistant savings.