Summary
Americans have seen record highs in their retirement account balances, mainly due to increases in the stock market and steady contributions. Fidelity Investments reported that the average 401(k) and IRA balances reached new records by the third quarter of 2025. This growth comes despite earlier economic concerns and fluctuating stock markets.
Key Facts
- Retirement account balances in the U.S. reached record highs by the third quarter of 2025.
- The average 401(k) balance increased by 9% to $144,400, while the average IRA balance rose by 7% to $137,902.
- This marks the sixth straight quarter of growth in retirement savings since mid-2023.
- The U.S. stock market recovered, with the S&P 500 increasing by 14% and the Nasdaq by 17% through September 30, 2025.
- Americans maintained an average 401(k) contribution rate of 14.2%.
- The number of "401(k) millionaires" grew by 10% to 654,000 accounts in the third quarter.
- Younger generations, like Millennials and Gen Z, increasingly invest in Roth IRAs and Roth 401(k)s, which are known for tax-free withdrawals.
- Contribution limits for Roth accounts are set to rise in 2026, potentially encouraging more savings.
