Quarterly summary
According to the latest Fidelity Investments® retirement analysis, average 401(k) and 403(b) account balances continue to trend upward, with 401(k) balances up more than 11% and 403(b) balances up 13% over Q4 2024 – the third straight year of double-digit annual balance increases. The average IRA balance increased 7% over last year.
Average retirement account balances
Saving rates and contributions remain high
Total 401(k) savings rates
9.5% employee contribution rate
Held steady at 14.2% for the third quarter in a row. This is a result of a consistent employee contribution rate of 9.5% and an employer contribution rate of 4.7%. This number remains close to Fidelity's suggested combined 401(k) savings rate of 15%.
Generational savings behaviors
13%+ Gen Z workers increased contribution rate
Gen X⁴ workers maintained a total 401(k) savings rate above the suggested 15%, which is promising as this generation approaches retirement age. Gen Z workers continue to leverage target date funds; additionally, more than 13% of Gen Z workers increased their contribution rate in Q4 2025.
Long-term savers
16% increase in 401(k) balance for 5-year continuous savers
For the more than 5.5 million individuals on Fidelity’s 401(k) platform that have been in their 401(k) plan with the same employer for 5 years straight, the average 401(k) balance increased to $304,200 at the end of 2025, a 16% increase from the end of 2024.
Increasing IRA contributions
25% increase in Fidelity IRA accountholders making contributions
The number of Fidelity IRA accountholders making contributions in Q4 was up 25% from last year, and total contributions were up 23% — marking a record high for IRA contributions made in Q4. Generation X continues to increase contributions, up 25% year-over-year, driven in part by increased Roth contributions.
“Despite uniquely challenging times, retirement savers remain committed to their financial futures by staying the course with their retirement savings. The consistency so many Americans show in maintaining responsible savings behaviors and keeping a long-term perspective will serve them well in retirement.”
Sharon Brovelli,
President of Workplace Investing at Fidelity Investments
Spotlight: Women making financial strides
Women continue to make meaningful strides in building long‑term financial security, including retirement. To continue that momentum, Fidelity’s Women Talk Money team is hosting a month-long event series designed to help women feel more confident about their next money moves.
22%
Average 401(k) balance increase for females over the past five years (versus 20% overall)
46.6%
Almost half of Gen Z women increased their 401(k) savings rate in 2025
$508,700
End-of-year average balance for female 15-year continuous savers.⁵
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¹ Fidelity business analysis of 18.9 million IRA accounts as of December 31, 2025. Considers only active participants with balance.
² 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.
³ 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.
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 All data represents female savers on Fidelity's platform.
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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