Average 401(k) balances hit $155,000 in the second quarter, lifting record high retirement account balances even after a weaker start to the year. Fidelity’s data show workers kept contributing while markets recovered, leaving many savers with larger account values but little relief from broader economic worry.
Sharon Brovelli said, “Workers continue to prioritize their financial future.” The average 401(k) balance rose 10.5% from the prior three-month period, and the average 403(b) balance climbed to a record $145,000, up 11.5% from the first quarter. Those gains followed a first-quarter pullback from Q4 2025 peaks.
401(k) match rates held firm
81.2% of 401(k) participants saved enough to capture their full employer match, a key sign that many workers stayed engaged with their plans despite uncertainty. Combined savings rates held at 14.4% for 401(k) participants and 12% for 403(b) participants, both below Fidelity’s 15% benchmark but still at levels that kept balances moving higher.
36% of respondents said they felt good or excellent about their financial health, while 55% said they were concerned about the economy. Another 46% were stressed about inflation and the cost of living, and 42% were unsettled over the geopolitical environment. The gap between account gains and sentiment shows the balance sheet improved faster than household confidence.
IRA balances and women’s gains
36% growth in IRA contributions from a year earlier pushed female IRA investors above an average balance of $130,000, up 12% from a year ago. Women who had continuously participated in a 401(k) for at least five years also crossed the quarter-million-dollar average balance mark for the first time, another sign that steady contributions compounded through the quarter’s rebound.
Sharon Brovelli’s comment matches the numbers: saving behavior stayed intact even as respondents described economic strain. The open question is how much of the record balance growth came from market performance versus ongoing contributions, because the second-quarter data show both forces working at once.
Small-business savings at 178%
Small-business retirement accounts have grown 178% since 2021, and contributions to those accounts are up 46% over the same period. In the second quarter, those contributions accounted for 28% of all retail retirement contributions, with SEP and Simple IRA contributions making up a combined 64% of small-business retirement-account contributions.
More than 25,000 participants are now saving through Fidelity Advantage 401(k), and Millennial investors were the most active cohort among small-business retirement savers. The second-quarter report leaves the same practical message for workers: the balances rose, the saving rate held up, and the pressure point remains whether households can keep contributing at this pace while inflation and economy worries stay elevated.
