Retirement worries span market performance and the election

investmentnews.com:

Americans have a lot of worries about retirement, whether that’s having too little in savings or how the upcoming presidential election will hurt their accounts.

Data from a survey published today by Schroders found that people on average say they would need $1.2 million to retire comfortably, but nearly half, 46 percent, will likely have $500,000 or less. Another 23 percent expect to have less than $250,000, and just under 30 percent of the 2,000 US investors surveyed in April said they are on track to have at least $1 million saved by an average planned retirement age of 63.

“Having a ‘magic number’ for retirement assets can be both beneficial and problematic. On the positive side, it provides a clear goal that motivates and guides savings and investment strategies,” Deb Boyden, head of US defined contribution at Schroders, said in an email. “However, relying on a single target number has its drawbacks. It can oversimplify the complexities of retirement planning, overlooking personal circumstances, inflation, healthcare costs, and lifestyle changes.”

What people don’t understand about saving and investing can hurt them, according to Schroders. More than a quarter of investors, 28 percent, said they have no idea about how their retirement assets are allocated, the survey found. However, those who are active in allocating their account assets appear to be reacting with fear about the market, as many are overweighted in cash. The average allocation is 29 percent in equities, 28 percent in cash, 19 percent in fixed income, 16 percent in target-date funds, and 8 percent in other categories, the company found. Two-thirds of those with cash allocations said they worry about losing money in the stock market, according to the