U.S. workers, on average, increased their 401(k) balances by 13% in 2025 — reaching an average of more than $113,000 — according to new data released by Bank of America. Contribution rates remained consistent through the fourth quarter of last year at an average of 7.2%. 

This new data provides a snapshot of more than 4 million plan participants' financial wellness, examining 401(k) and Health Savings Account (HSA) activity. Overall, the data points to stability and consistent savings habits throughout the year, Bank of America officials say.

Other findings include:

  • Smart plan design has a significant impact on savings. Participants in plans with auto-enroll and auto-increase features had an average account balance of more than $170,000 — more than $50,000 higher than the overall average. 
  • Money flowing out of accounts remained low and stable. Loans and loan amounts stayed relatively low (averaging $9,000 to $10,000), and fewer than 1% of participants took new hardship withdrawals each quarter for relatively small amounts (averaging $5,000 to $6,000). A decrease in loan defaults also continued.
  • HSA balances grew, and slightly more account holders are investing funds. The average HSA balance increased to $5,600 at year's end — up from $5,030 at the end of 2024. And while 15% of account holders are investing for potential future growth (up from 14% the previous year), many are still spending more of their contributions to cover current expenses rather than saving (72% vs. 28%). 

Additionally, more men than women and more boomers than other generations use the HSA investment feature to potentially grow their HSA balances.

NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.