The number of retirement savers with more than $1 million in their Fidelity 401(k) accounts decreased significantly during the first quarter of 2025, according to Fidelity Investments, dropping to 512,000 from 537,000 as of year-end 2024. That’s a decline of about 4.6% over the first three months of the year.
Even as account values declined, Fidelity’s newly released Q1 2025 retirement analysis noted that contribution levels either held steady or increased. The average 403(b) savings rate held at 11.8%, while the average 401(k) savings rate increased to a record 14.3%.
These levels are driven by an employee contribution rate of 9.5%, complemented by an employer contribution rate of 4.8% — the highest level seen to date. The combined rate of 14.3% is the closest it’s been to Fidelity's suggested 15% savings rate.
Even with lowered account balances in the quarter, balances increased from one year prior, led by five-year continuous savers who saw an increase of 19.7% over the past year.
The average Q1 2025 IRA balance of $121,983 fell 4% compared to year-end 2024 and 1% compared to a year earlier. This figure, though, is up 23% compared with Q1 2020 and up 30% from a decade earlier.
The average Q1 2025 401(k) account balance of $127,100 is down 3% compared with year-end 2024 and down 1% compared with a year earlier. Still, this figure is up 39% compared with Q1 2020, according to Fidelity, and up 38% from a decade earlier.
The percentage of workers contributing to a Roth 401(k) increased to 16.8% in the first quarter, up from 15.2% one year ago. The percentage of individuals initiating a 401(k) loan dropped slightly from one year ago, falling to 2.3% from 2.4%.
IRA contributions, meanwhile, have increased 4.5% from a year ago ($3,231 vs. $3,093). This is particularly notable for baby boomers, Fidelity reports, with average contributions rising 21% from Q1 last year ($5,272 vs. $4,348).
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