data and insights | q1 2026
Retirement analysis
Fidelity’s quarterly analysis of savings behaviors and account balances for more than 54 million IRA, 401(k), and 403(b) retirement accounts.
Quarterly summary
According to the latest Fidelity Investments® retirement analysis, average 401(k), 403(b) and IRA account balances dipped slightly in Q1 2026 from the previous quarter due to market volatility. However, average balances across all three account types have increased over various time periods, including one, five, and 10 years ago.
Average retirement account balances
Record savings rates and contributions
Total average 401(k) and 403(b) savings rates
9.6% average employee contribution rate
Both 401(k) and 403(b) total savings rates reached record levels in Q1 2026. The total savings rate reached 14.4% for 401(k) savers and 12% for 403(b) participants. This is a result of an average employee savings rate of 9.6% - the highest on record – and average employer contribution rate of 4.8%. Together, these are moving closer to Fidelity's suggested combined savings rate of 15%.
Positive savings behaviors
18% of 401(k) participants increased their savings rate
Despite economic uncertainty in Q1, nearly one in five (18%) 401(k) participants increased their savings rate – in large part due to auto increases – while only 5.7% made a change to their asset allocation (down from 6% a year ago). The average quarterly employer contribution amount reached a record level of $2,080, surpassing the previous high of $2,020 a year ago.
Increasing IRA adoption
29% increase in IRA contributions year-over-year
IRAs saw strong results in Q1, including record-high contributions (up 29% year-over-year) and a record-high number of Fidelity IRA account holders contributing to accounts (up 28% year-over-year). These record levels were driven by strong Roth demand, with 67% of contributions going to Roth IRAs and Roth conversion transactions increasing 41% year-over-year.
Generational trends
Gen Z total IRA contributions increased 65% year-over-year
Only 5% of Millennials⁴ adjusted their 401(k) asset allocation in Q1, and nearly one in five (18.4%) increased their savings rate. Additionally, as of Q1 more than one in five Generation Z participants (21.4%) contributed to a Roth 401(k). Gen Z is also leading IRA growth, with total IRA contributions increasing 65% year-over-year, followed by Millennials with a 31% increase.
“Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they’re taking with retirement preparedness. While it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions – an approach that will strengthen their outcomes as retirement nears.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
Spotlight: Equity compensation as an investing tool
Company stock plans are reshaping how employees invest, save, and think about their financial futures. Fidelity’s latest Stock Plan Participant Research shows that – for many employees – equity compensation is not only a gateway to investing, but also a source of financial security and a reason to stay with their employer.
43%
Employees who became first-time investors through their company’s stock plan⁵
56%
Employees who say equity compensation makes them more likely to stay with their employer
73%
Employees who plan to use stock plan proceeds for long-term investing
Copyright 1998-2025 FMR LLC. All Rights Reserved.
¹ Fidelity business analysis of 19.6 million IRA accounts as of March 31, 2026. Considers only active participants with a balance.
² Fidelity Investments Q1 2026 401(k) data based on 26,800 corporate defined contribution plans and 25.6 million participants as of March 31, 2026. 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.
³ Fidelity Investments Q1 2026 403(b) data based on 10,660 Tax-exempt plans and 9.45 million plan participants as of March 31, 2026. Considers average balance across all active plans for 7.4 million unique individuals employed in tax-exempt market.
⁴ 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.
⁵ Based on a 2025 SPS participant research study of 25,037 stock plan participants.
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.
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC, 900 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC, 245 Summer Street, Boston, MA 02110
© 2026 FMR LLC. All rights reserved.
1260161.1.0