Quarterly summary
According to the latest Fidelity Investments® retirement analysis, despite market fluctuations earlier this year, retirement savers continued to focus on their long-term goals. Following a strong market rebound in the second quarter, average 401(k), 403(b), and IRA balances reached record highs in Q2 2026, with 401(k) balances posting their strongest quarterly growth since Q4 2020.
Average retirement account balances
Workers stay committed to retirement savings goals
Record savings rates remain steady
14.4% average 401(k) savings rate
Total average savings rates held at record levels for the second consecutive quarter, remaining at 14.4% for 401(k) savers and 12% for 403(b) participants. The 401(k) rate was driven by a record-high employee contribution rate of 9.6%, combined with an average employer contribution of 4.8%, bringing many workers closer to Fidelity's recommended 15% annual savings benchmark.
Workers continue to prioritize retirement savings
36% year over year increase in IRA contributions
As of Q2 2026, 12.1% of 401(k) participants increased their contribution rate, while more than 8 in 10 (81.2%) saved enough to receive their employer's full matching contribution. IRA savers increased contributions by 36% from Q2 of last year.
Women reach new retirement savings milestones
72% of female IRA contributions directed to Roths
Women continuously participating in a 401(k) plan for at least five years achieved an average balance of $273,400 in Q2 2026, surpassing the quarter-million-dollar mark. For female IRA investors, the average balance was $130, 231 in Q2, up 12% from a year prior. Additionally, women directed 72% of contributions to Roth IRAs, up 3.4% from Q2 2025.
Millennials⁴ continue building retirement momentum
26.1% year over year increase in average Millennial 401(k) balances
Millennials posted strong retirement savings growth in Q2 2026, with average 401(k) balances increasing 14.2% during the quarter and 26.1% year over year. Millennials and Gen Z workers also led Roth 401(k) participation rates at 20.1% and 21.9%, respectively. In addition, Millennials and Gen X employees were the highest contributors to traditional IRA contributions, both averaging approximately $6,000.
“The combination of record account balances, strong savings behaviors and effective plan design tell an encouraging story about how Americans are approaching retirement. Workers continue to prioritize their financial future, saving at record levels and taking advantage of valuable benefits such as employer matching contributions. These steps can play a powerful role in strengthening long-term retirement readiness.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
Spotlight: Expanding retirement access for small businesses
With small businesses employing nearly half of the U.S. workforce and more Americans participating in the growing gig economy, expanding access to workplace retirement savings remains a critical opportunity. Over the past five years, Fidelity has seen significant growth in small business retirement plan adoption and participation, helping more workers save and invest for their future.
178%
Growth in Fidelity retail small business retirement accounts over past five years
46%
Increase in contributions to Fidelity retail small business retirement accounts over past five years
25,000
Participants saving through Fidelity Advantage 401(k), a pooled employer plan (PEP) for small businesses
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¹ Fidelity business analysis of 20.3 million IRA accounts as of June 30, 2026. Considers only active participants with a balance.
² Fidelity Investments Q2 2026 401(k) data based on 27,300 corporate defined contribution plans and 25.8 million participants as of June 30, 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 Q2 2026 403(b) data based on 10,644 Tax-exempt plans and 9.49 million plan participants as of June 30, 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.
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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