Average 401(k) and 403(b) account balances continue to trend upward, marking the third straight year of double-digit annual balance increases—thanks in part to continued market gains and strong 401(k) savings levels. The analysis is based on Fidelity Investments’ latest Q4 2025 retirement analysis, which revealed that 401(k) balances were up more than 11% over Q4 2024, while the average 403(b) balance increased 13% over the previous year. In addition, both 401(k) and 403(b) savings rates held steady for the third quarter in a row.
“Retirement savers remain committed to their financial futures by staying the course with their retirement savings,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “The consistency so many Americans show in maintaining responsible savings behaviors and keeping a long-term perspective will serve them well in retirement.”
See also: Why the 401(k) is no longer enough to meet employee expectations
Indeed, the data show positive retirement savings behaviors across generations. Gen X workers, on average, are maintaining a total savings rate above Fidelity’s suggested 15%, while millennials and Gen Z employees are putting more of their savings into Roth 401(k)s. Gen Z workers, meanwhile, are continuing to leverage target date funds. Additionally, more than 13% of Gen Z participants increased their contribution rate in Q4 2025.
IRA retirement savings also saw strong growth, with the number of Fidelity IRA account owners making contributions up 25% and total contributions up 23% from Q4 2024—marking a record high for IRA contributions made in the fourth quarter. Generation X continues to increase their contributions, up 25% year-over-year, driven in part by increased Roth IRA contributions.
Female retirement savers making meaningful strides, hit milestone
In recognition of Women’s History Month in March, this quarter’s retirement analysis also spotlights the strides female savers are making in building their retirement savings. The average 401(k) balance among women has increased 22% over the past five years, compared to 20% among savers overall, according to Fidelity.
Long-term female savers also hit a significant milestone this year: Women who have been in their 401(k) for 15 years continuously had an average balance of $508,700 at the end of 2025, up from $453,500 a year prior. Additionally, nearly four in 10 women increased their 401(k) savings rate in 2025—a percentage that was even higher among Gen Z women (47%).
“Americans are clearly considering all the savings options available to them in an effort to solidify their financial futures,” said Bob Mascialino, president of Wealth at Fidelity Investments. “Saving early and often, particularly in a tax-advantaged manner, is often the best way to save and invest for the future.”
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