Only 5% of retirees say they’re ‘living the dream’ and 19% are ‘living the nightmare.’ Here are 3 lessons to protect your future

Defined Contribution at Schroders

Dream or nightmare?Getty ImagesFor many Americans, retirement isn’t financially carefree and easy

In fact, according to Schroders’ 2025 US Retirement Survey, 19% of retirees are “struggling” or “living the nightmare” while just 5% said they were “living the dream”

Unfortunately for retirees, the time to start saving early and planning strategically is in the rearview mirror

However, for those with a decade or more left in the workforce, understanding the challenges faced by today’s retirees and how to best prepare for them can mean the difference between living the dream and living the nightmare

At any age, saving for retirement can be challenging

In your 20s and 30s, you’re ly faced with a host of competing financial priorities that include student loan debt, car payments, and saving for a house

It’s also tempting to succumb to crastination, knowing that you may have 30 or 40 years ahead before you’ll be able to retire

When you reach your 40s and 50s, competing financial obligations don’t disappear, they evolve

Instead of paying off your student loans, you find yourself paying college tuition bills for your children

In lieu of saving for a house, you’re making monthly mortgage payments or paying unexpected repair bills for a leaking roof or water heater

Thanks to the power of compounding over time, the sooner you prioritize saving for retirement, the more ly you’ll have enough d to manage your expenses after leaving the workforce

Where the inflation rate will be when you’re ready to retire is both unknown and uncontrollable

Similarly, stocks may be in the middle of a historic bull market when you’re ready to leave the workforce or your portfolio might be negatively impacted by a bear market

While these concerns may be unnerving and unpredictable, they shouldn’t derail a secure retirement if you stay focused on the variables that are in your control

Creating good financial habits and making sound decisions the factors within your control will help put you on the path toward a comfortable retirement despite short-term swings in the market or the inflation rate. 3) Winging it won’t get you there For many decades, traditional company pension plans vided workers with a safety net that, when combined with Social Security benefits, helped to ensure a comfortable retirement

But times have changed as pensions have become a relic of the past for most private-sector employees

The shift from traditional pensions (known as defined benefit plans) to defined contribution retirement plans has placed the responsibility for retirement saving and planning on the employee

Despite the challenges associated with figuring out when to retire, how and when to claim Social Security, or how to generate steady income after leaving the workforce, many people don’t work with a financial advisor and have no plan for managing their retirement expenses and assets

While not everyone needs to maintain an relationship with a financial advisor, there’s no question that anyone preparing for retirement could benefit from seeking guidance on how to imve their financial well-being and maximize their income once they stop working

Retirement security doesn’t happen by chance—it requires planning and discipline

While it’s easy to postpone saving or assume that Social Security alone will suffice, our re paints a different picture

With rising expenses, unpredictable , and fewer guaranteed income sources pensions, the burden of retirement planning now falls squarely on individuals

Fortunately, by taking control of the variables you can manage—your savings rate, investment strategy, and financial planning—your retirement dreams can be within reach

It’s never too early — or too late — to start making financial decisions that will pay dividends in the years ahead

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