Fidelity® Q1 2025 Retirement Analysis: Retirement Savings Rates Reach Record High While Average Account Balances Are Lower

401(k) Savings Rates Reach Record High

Retirement Savers Maintain Consistent Savings Behaviors Through Q1 Volatility

BOSTON--(BUSINESS WIRE)--According to Fidelity Investments^®’ latest Q1 2025 retirement analysis, average 401(k), 403(b), and IRA balances ended the quarter slightly lower, primarily as a result of market swings. Encouragingly, both employer and employee savings rates stayed consistently high, with the total 403(b) savings rate holding steady at 11.8% while the total 401(k) savings rate increased to a record 14.3%.

“Although the first quarter of 2025 posed challenges for retirement savers, it’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “This approach will help individuals weather any type of market turmoil and stay on track to reach their retirement goals.”

As one of the country’s leading workplace benefits providers¹ and America’s No. 1 IRA provider² – which just celebrated its 50^th anniversary of offering IRAs – Fidelity’s latest analysis of savings behaviors and account balances for more than 50 million IRA³, 401(k)⁴, and 403(b)⁵ retirement accounts can be found here.

Naturally, this quarter’s retirement analysis shines a spotlight on how Fidelity’s retirement savers fared during the market volatility of the first quarter. The good news: despite the market swings, Fidelity workplace participants stayed fairly consistent with their contribution rate and asset allocation.

Additional details and insight on retirement trends and data, as well as tips to help retirement savers navigate volatile markets, can be found in Fidelity’s latest quarterly edition of “Building Financial Futures” as well as the Workplace Insights hub, which explores original research, data-driven insights, and the latest industry trends.

About Fidelity Investments
Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $15.0 trillion, including discretionary assets of $5.9 trillion as of March 31, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 78 years, Fidelity employs more than 77,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

Keep in mind that investing involves risk, including the risk of loss. The value of your investment will fluctuate over time, and you may gain or lose money.

Past performance is no guarantee of future results.

Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.

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900 Salem Street, Smithfield, RI 02917

Fidelity Distributors Company LLC,
900 Salem Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,
245 Summer Street, Boston, MA 02110

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^1 Based on PLANSPONSOR Magazine's “2024 Recordkeeping Survey,” June 2024 and “Plan Administration Guide, Part 1” which offers insight into the provider marketplace for defined benefit (DB), stock plan and health savings account (HSA) administration, May 2018.

^2 Based on Cerulli Associates’ U.S. Retirement End-Investor 2024: Top-10 IRA Providers by AUA, 4Q 2021–4Q 2023.

^3 Fidelity business analysis of 17.3 million IRA accounts as of March 31, 2025. Considers only active participants with balance.

^4 Fidelity Investments Q1 2025 401(k) data based on 25,300 corporate defined contribution plans and 24.4 million participants as of March 31, 2025. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are non-qualified defined contribution plans and plans for Fidelity’s own employees.

^5 Fidelity Investments Q1 2025 403(b) data based on 10,719 Tax-exempt plans and 9.0 million plan participants as of March, 31 2025. Considers average balance across all active plans for 6.63 million unique individuals employed in tax-exempt market.