Fidelity® Q4 2025 Retirement Analysis: Average Annual 401(k) Account Balances Increase by Double Digits for Third Year in a Row

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BOSTON--(BUSINESS WIRE)--Mar 4, 2026--

According to Fidelity Investments ®, latest Q4 2025 retirement analysis, average 401(k) and 403(b) account balances continue to trend upward, marking the third straight year of double-digit annual balance increases – owing in part to continued market gains and strong 401(k) savings levels. Overall, 401(k) balances were up more than 11% over Q4 2024, while the average 403(b) balance increased 13% over the previous year; IRA balances increased 7%. In addition, both 401(k) and 403(b) savings rates held steady for the third quarter in a row.

This quarter also demonstrated positive retirement savings behaviors across generations. Gen X i workers, for instance, are on average maintaining a total savings rate above Fidelity’s suggested 15% ii, which is a promising trend as this generation approaches retirement age. Millennials and Gen Z employees are putting more of their savings into Roth 401(k)s, and Gen Z workers are continuing to leverage target date funds. Additionally, more than 13% of Gen Z participants increased their contribution rate in Q4 2025.

“Retirement savers remain committed to their financial futures by staying the course with their retirement savings,“ said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. ”The consistency so many Americans show in maintaining responsible savings behaviors and keeping a long-term perspective will serve them well in retirement.”

IRA retirement savings also saw strong growth, with the number of Fidelity IRA account owners making contributions up 25% and total contributions up 23% from Q4 2024 – marking a record high for IRA contributions made in the fourth quarter. Generation X continues to increase their contributions, up 25% year-over-year, driven in part by increased Roth IRA contributions.

”Americans are clearly considering all the savings options available to them in an effort to solidify their financial futures,” says Bob Mascialino, president of Wealth at Fidelity Investments. "Saving early and often, particularly in a tax-advantaged manner, is often the best way to save and invest for the future. We are dedicated to offering many ways for families to save and plan for their future--and will be working with the Treasury to offer Trump Accounts to help younger generations achieve a more secure future."

As one of the country’s leading workplace benefits providers iii and America’s No. 1 IRA provider iv, Fidelity’s latest analysis of savings behaviors and account balances for more than 53 million IRA v, 401(k) vi, and 403(b) vii retirement accounts can be found here.

Female Retirement Savers Making Meaningful Strides, Hit Milestone

In recognition of Women’s History Month in March, this quarter’s retirement analysis also spotlights the meaningful strides female savers are making in building their retirement savings. The average 401(k) balance among women has grown 22% over the past five years, compared to 20% among savers overall. Long-term female savers also hit a significant milestone this year – women who have been in their 401(k) for 15 years continuously had an average balance of $508,700 at the end of 2025, up from $453,500 a year prior. Additionally, nearly 4-in-10 women increased their 401(k) savings rate in 2025 – a percentage that was even higher among Gen Z women (47%).

This March, Fidelity’s Women Talk Money team will be joined by special guests Mindy Kaling, Tony Award-winning and Emmy-nominated writer, producer, and actor, and Shonda Rhimes, award-winning writer, producer, author, and CEO of Shondaland, for a special month-long event series. The free webinars will include practical advice for creating space for your goals, making money moves that count, and building your career and financial future. The Women Talk Money community offers a forum year-round for real talk about money, investing, careers, and other topics top of mind for women, through live events, on demand content, and other actionable resources to help members take their next best steps with their finances. It’s free to join for everyone.

Additional details and insight on retirement trends and data can be found in Fidelity’s latest quarterly edition of “ Building Financial Futures ” as well as the Workplace Insights hub, which explores original research, data-driven insights, and the latest industry trends.

About Fidelity Investments

Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $18.0 trillion, including managed assets of $7.1 trillion as of December 31, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 80,000 associates across North America, Europe, and Asia-Pacific. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

Keep in mind that investing involves risk, including the risk of loss. The value of your investment will fluctuate over time, and you may gain or lose money.

Past performance is no guarantee of future results.

Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.

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i Generations as defined by Pew Research: Baby Boomers are individuals born between 1946 – 1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981 – 1996 and Gen Z includes individuals born between 1997 – 2012.

ii Fidelity’s suggested 15% savings rate reflects the individual’s pre-tax contribution combined with the employer match. Viewpoints, “How much should I save for retirement?,” April 2025.

iii Based on PLANSPONSOR Magazine's “2025 Recordkeeping Survey,” June 2025 and “2025 Defined Benefit Administration Survey,” September 2025.

iv Based on Cerulli Associates’ U.S. Retirement End-Investor 2024: Top-10 IRA Providers by AUA, 4Q 2021–4Q 2023.

v Fidelity business analysis of 18.9 million IRA accounts as of December 31, 2025. Considers only active participants with a balance.

vi Fidelity Investments Q4 2025 401(k) data based on 26,200 corporate defined contribution plans and 24.8 million participants as of December 31, 2025. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelity’s own employees.

vii Fidelity Investments Q4 2025 403(b) data based on 10,660 Tax-exempt plans and 9.36 million plan participants as of Dec 31, 2025. Considers average balance across all active plans for 6.9 million unique individuals employed in tax-exempt market

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SOURCE: Fidelity Investments

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PUB: 03/04/2026 08:30 AM/DISC: 03/04/2026 08:30 AM

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