Summary
In 2025, the average American 401(k) retirement savings increased by over 11%, reaching about $146,000. This growth is attributed to steady employee contributions, employer matches, and a recovering market, helping more people approach retirement with stronger savings.
Key Facts
- The average 401(k) balance went up by over 11% in 2025, reaching approximately $146,000.
- Americans think they need about $1.26 million for a comfortable retirement.
- Fidelity's data shows many workers contribute around 15% of their income to retirement plans.
- The number of accounts with $1 million or more rose to 665,000, mainly held by Generation X.
- Younger generations, like millennials and Gen Z, are making smart savings choices by using Roth contributions and target-date funds.
- The median 401(k) balance is much lower than the average, meaning many have insufficient savings.
- Individual Retirement Account (IRA) contributions increased by 25% compared to the previous year.
