Fidelity® Q2 2025 Retirement Analysis: Retirement Account Balances Reach New Record High, Rebounding From Dip in Q1

401(k) savings rates – combining employer and employee contributions – remain at record high levels

Higher education employees demonstrate impressive retirement saving behaviors and outcomes

BOSTON--(BUSINESS WIRE)--According to Fidelity Investments^®’ latest Q2 2025 retirement analysis, average 401(k), 403(b), and IRA balances reached new record highs in Q2. Driven by consistent savings and positive stock market performance - and despite the market volatility experienced at the start of the quarter - the average 401(k) balance increased by 8% from a year prior, while the average 403(b) balance increased 9% and the IRA balance increased 5% since Q2 2024.

“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, president of Workplace Investing at Fidelity Investments. ”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.”

As one of the country’s leading workplace benefits providers¹ and America’s No. 1 IRA provider², Fidelity’s latest analysis of savings behaviors and account balances for more than 51 million IRA³, 401(k)⁴, and 403(b)⁵ retirement accounts can be found here.

Additionally, this quarter’s retirement analysis shines a spotlight on “Retirement Preparedness of Higher Education Employees,” a new report focused on the retirement savings behaviors of employees in higher education. While the report highlights positive savings behaviors for most of the higher education workforce – including impressive savings rates and asset allocation – it also suggests gaps remain among certain groups of employees, particularly younger generations and women.

"With the market volatility experienced earlier in the quarter, it's understandable that some retirement savers may feel uncertain about how their balances are being impacted," says Robert Mascialino, president of Wealth at Fidelity Investments. "However, we're seeing solid 401(k) contributions and more people adding to their IRAs – especially Baby Boomers⁶ and Gen X⁷, who are continuing to prioritize retirement. It's encouraging to see customers focus on the long-game when it comes to investing for retirement.”

Additional details and insight on retirement trends and data 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 $16.4 trillion, including discretionary assets of $6.4 trillion as of June 30, 2025, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 78,000 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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^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 17.8 million IRA accounts as of June 30, 2025. Considers only active participants with balance.

^4 Fidelity Investments Q2 2025 401(k) data based on 25,600 corporate defined contribution plans and 24.6 million participants as of June 30, 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 10,677 Tax-exempt plans and 9.01 million plan participants as of June 30, 2025. Considers average balance across all active plans for 6.63 million unique individuals employed in tax-exempt market.

^6 Generations as defined by Pew Research: Baby Boomers are individuals born between 1946 – 1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981 – 1996 and Gen Z includes individuals born between 1997 – 2012.

^7 Generations as defined by Pew Research: Baby Boomers are individuals born between 1946 – 1964, Gen X are individuals born between 1965-1980, Millennials include individuals born between 1981 – 1996 and Gen Z includes individuals born between 1997 – 2012.