The number of Americans with $1 million or more in their 401(k) accounts reached an all-time high in the second quarter of 2025, according to Fidelity Investments’ latest retirement analysis.
The firm reported that 595,000 individuals now hold at least $1 million in their 401(k)s, a milestone driven by consistent savings and a strong recovery in stock market performance.
According to Fidelity's newest analysis, average balances across all major retirement account types also set new records in Q2. The average 401(k) balance climbed to $137,800, up 8% from the previous quarter and marking the highest quarterly increase since the end of 2023. IRA balances rose to $131,366, a 5% increase over the past year, while the average 403(b) balance reached $125,400, up 9% year over year.
The gains are even rosier when viewed from a half-decade timeframe. Compared to Q2 2020, 401(k) balances went up by 32% on average, while 403(b) and IRA account balances increased by 38% and 16%.
Fidelity attributed the gains to steady contributions and a focus on long-term goals – the same forces highlighted in a recent joint study of 401(k) plans by the Employee Benefit Research Institute and the Investment Company Institute – even amid market volatility earlier in the quarter.
“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,” said Sharon Brovelli, president of workplace investing at Fidelity 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.”
The total average 401(k) savings rate, which combines employee and employer contributions, remained at a record high of 14.2%. This figure is the result of a 9.5% employee contribution rate and a 4.8% employer contribution rate, keeping savers close to Fidelity’s suggested 15% savings benchmark.
Fidelity’s analysis also found that most participants avoided making major investment changes during the quarter. Only 5.5% of savers adjusted their 401(k) asset allocation, and more than four out of five members of the group who did (82.5%) made just one change.
IRA contributions remained steady overall, but Gen X and Baby Boomer participants in particular showed notable increases. Contributions from Gen X retirement savers rose by 25% compared to the same period last year, while Boomers increased their IRA contributions by 37%.
Robert Mascialino, president of wealth at Fidelity, noted that “we’re seeing solid 401(k) contributions and more people adding to their IRAs – especially Baby Boomers and Gen X, who are continuing to prioritize retirement. It’s encouraging to see customers focus on the long-game when it comes to investing for retirement.”
Fidelity’s report also highlighted the retirement preparedness of higher education employees, noting positive savings behaviors but identifying gaps among younger workers and women. The findings underscore the importance of consistent saving and a disciplined approach, regardless of market conditions, for US retirement savers and their advisors.
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