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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> Retirement planning is full of unknowns, from how long you\u2019ll live to how much you\u2019ll spend. Even diligent savers<\/a> may be making costly mistakes. <\/p>\n A new Charles Schwab survey of 401(k) participants<\/a> reveals the major misconceptions Americans have about retirement in 2025. Here\u2019s what they are, and how to correct them<\/a>.<\/p>\n Misjudging How Much You\u2019ll Need<\/p>\n On average, workers expect to retire at age 66 and believe they will need $1.6 million saved. They estimate their savings will last 22 years in retirement. However, this may not be sufficient given increasing life expectancy<\/a>.<\/p>\n<\/p>\n Not Sufficiently Diversifying Retirement Savings<\/p>\n Workers expect 45% of their retirement income to come from their 401(k), with Social Security contributing 18%. This heavy reliance on workplace plans could be risky if market conditions worsen or if individuals fail to diversify their retirement income sources<\/a>.<\/p>\n Consider adding other assets to your retirement savings portfolio, such as individual retirement accounts, brokerage accounts, health savings accounts and real estate investments.<\/p>\n<\/p>\n Skipping Expert Help<\/p>\n Just 27% feel confident making 401(k) investment decisions on their own, but confidence nearly doubles to 51% with professional advice. Yet many still rely on informal sources like family and friends, especially younger generations \u2014 41% of Gen Z and 37% of millennials get financial advice from family and friends.<\/p>\n \u201cNo matter your age or income, it\u2019s never too late to ask for help and take positive steps toward your retirement goals,\u201d said Lee McAdoo, managing director at Schwab Retirement Plan Services. \u201cOur findings underscore that professional advice can play a pivotal role in increasing confidence and improving outcomes.\u201d<\/p>\n Letting Inflation Derail Your Strategy<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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