Consistent saving and a bullish stock market drove average retirement account balances to record highs in the second quarter despite tariff-related volatility in April, with the number of 401(k) millionaires also reaching an all-time record, Fidelity Investments reported Thursday in its latest quarterly retirement analysis.
There were 595,000 people with at least $1 million in their Fidelity 401(k) accounts in the second quarter, the financial services giant reported, up from 512,000 people in the first quarter.
The lesson in the record balances? Consistent investing — sticking with plans rather than panic-selling stocks during market dips, Fidelity suggested.
"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, Workplace Investing president at Fidelity. "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 average 401(k) balance increased by 8% year over year in the second quarter, while the average 403(b) balance increased 9% and IRA balances rose 5% on average, Fidelity reported. From the 2015 second quarter to 2025, average IRA balances were up 40%, average 401(k) balances were up 51% and average 403(b) balances rose 69%.
Savings rates for 401(k) plans remained high, with employees contributing 9.5% and employers chipping in at a 4.8% rate in the second quarter.
"At 14.2%, this number remains close to Fidelity's suggested savings rate of 15%," the company said.
Despite early-quarter turbulence, only 5.5% of retirement savers made a change to their 401(k) asset allocation in the period.
While average IRA contributions remained steady over the past year, Generation X and baby boomers picked up the pace, with Gen Xers boosting contributions by 25% and boomers by 37% compared with a year earlier, Fidelity reported.
The asset manager said it analyzed savings behaviors and account balances for more than 51 million IRA, 401(k) and 403(b) accounts.
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