For years, the retirement plan seemed straightforward: work for decades, save money, and eventually leave your job with enough to enjoy life. For many Americans, reaching that point has become much harder than they expected.

Retirement costs have climbed, and the amount people think they need has grown along with them. A recent survey of 1,000 U.S. retirees reveals just how far apart retirement savings goals and actual account balances have become.

The Growing Gap Between Retirement Goals and Savings

The survey found that retirees believe they need an average of $823,800 to retire comfortably. Just a year earlier, that figure was about $580,000.

Rising costs for housing, groceries, insurance, and healthcare may help explain the change. Many retirees find that the money they saved years ago doesn’t stretch as far as they expected.

Their actual savings tell a different story. Retirees reported an average of about $288,700 saved, far below what they believe they need to maintain a comfortable lifestyle.

Only about one in four had at least $500,000 saved before retiring.

Many People Enter Retirement With Little Savings

Not everyone reaches retirement with a sizable nest egg. While some people spend decades building their savings, others leave the workforce with very little saved.

About 29% of retirees said they have no retirement savings. For these individuals, covering everyday expenses can become a challenge once a regular paycheck stops coming in.

There are plenty of reasons people fall behind on saving. Low wages, credit card debt, medical bills, unexpected expenses, and the cost of raising a family can leave little money available for retirement contributions.

For households already struggling to cover monthly bills, setting aside money for a future that may be decades away isn’t always realistic.

Higher Costs Are Changing Retirement Plans

Many retirees are spending more on basic needs than they planned. Groceries, housing, insurance, and medical care can take up a larger share of their monthly income than expected.

Inflation has also reduced what retirement savings can buy. Someone who saved a certain amount 20 years ago may find that the same balance covers far fewer expenses today.

Some retirees have responded by cutting back on travel, postponing purchases, or changing their daily routines. Others have had to rethink how long their savings will last.

Retirement Confidence Is Falling

The gap between what retirees have saved and what they expect to spend is leaving many worried about the years ahead. Nearly half said they aren’t confident their money will support their current quality of life for the rest of their lives.

Some worry about running out of savings as they age, especially if healthcare costs or other major expenses rise. Living on a fixed income can make those worries harder to manage.

The survey also found that 64% of retirees believe the United States is facing a retirement crisis. Fewer than half think the average American will be able to retire comfortably in the coming decades.

Many Retirees Wish They Had Started Saving Earlier

Looking back, many retirees say they would have handled their money differently. More than half said they hadn’t saved enough, while others wished they had started saving earlier or learned more about investing.

Starting early gives savings more time to grow through investment returns and compound interest. People who start saving later may need to save much more to reach the same retirement goal.

Retirement Looks Different Than It Used To

Retirement still means having the freedom to step away from work and enjoy life, but the financial requirements have changed. Higher living costs and longer retirement periods can make it harder to stretch savings across the years ahead.

The survey highlights a wide gap between what retirees believe they need and what many actually have. For people still working, it’s a reminder to review their retirement plans, save what they can, and think carefully about the lifestyle they hope to afford later in life.