Quarterly summary
According to the Fidelity Investments® Q2 2025 retirement analysis, 401(k) and 403(b) balances reached new record highs in Q2. Driven by consistent savings and positive stock market performance, the average 401(k) balance increased by 8% over last quarter, the highest quarterly increase since Q4 2023.
Average retirement account balances
Retirement savers stay the course
14.2%
total average 401(k) savings rates
Total average 401(k) savings rates remained consistent with last quarter, which was at a record high. This is a result of an employee contribution rate of 9.5% and an employer contribution rate of 4.8%. At 14.2%, this number remains close to Fidelity's suggested savings rate of 15%.
595,000
401(k)-created millionaires
The account balance rebound resulted in a related rebound in 401(k)-created millionaires, which reached an all-time high with 595,000 individuals in Q2.
5.5%
changed their 401(k) asset allocation
Despite the turbulence early in the quarter, only 5.5% of retirement savers made a change to their 401(k) asset allocation in Q2. Of this group, more than eight in 10 (82.5%) employees made only one change.
25%
for Gen X-ers
37%
for Boomers
Although average IRA contributions have remained steady over the past year ($2,223 vs $2,225), contributions for both Gen X and Boomers are on the rise, increasing by 25% for Gen X-ers and 37% for Boomers from Q2 last year.
“Even during periods of turbulence, the majority of savers are wisely making the decision to stay the course and not make sudden changes to their retirement investments. This diligence and focus on long-term retirement goals contributed to this quarter's retirement balance rebound, demonstrating the importance of staying calm and not overreacting to market changes.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
Spotlight: retirement in higher education
Fidelity’s recent Retirement Preparedness of Higher Education Employees study reveals that higher education employees are making the right moves when it comes to retirement – including high savings rates and appropriate asset allocation. However, some gaps remain employers should address – notably among younger employees and women.
84%
Participation rate in workplace savings plans
19.1%
Average savings rate
$369,000
Average account balance
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¹ Fidelity business analysis of 17.8 million IRA accounts as of June 30, 2025. Considers only active participants with balance.
² Fidelity Investments Q2 2025 401(k) data based on 25,600 corporate defined contribution plans and 24.6 million participants as of June 30, 2025. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are non-qualified defined contribution plans and plans for Fidelity’s own employees.
³ Fidelity Investments Q2 2025 403(b) data based on 10,677 Tax-exempt plans and 9.01 million plan participants as of June 30, 2025. Considers average balance across all active plans for 6.63 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.
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.
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