Retirement account balances hit double-digit increases for a third year in a row, finds a new report out today by Fidelity Investments.
The Q4 2025 retirement analysis found that 401(k) and 403(b) account balances continued in an upwards trajectory to close out the year, at $146,400 for 401(k) accounts and $133,500 for 403(b) plans. Average account balances increased to $304,200 for those who have contributed to a Fidelity retirement account for over five years. This was due to market gains, strong 401(k) savings levels, and increasing individual retirement account (IRA) contributions.
Overall, 401(k) balances grew more than 11% over Q4 2024, and average 403(b) balances increased 13% over the previous year. Balances for individual retirement accounts (IRAs) also matured 7% in the same timeframe.
The last quarter of 2024 saw optimistic retirement savings attitudes across all generations, with Gen X workers on average maintaining a total savings rate higher than Fidelity’s recommended 15%. Meanwhile, Millennial and Gen Z employees are adding their savings to Roth IRAs, and Gen Z workers are utilizing target-date funds (TDFs) to optimize retirement savings while increasing contribution rates.
On average, employees contribute 9.5% of their paycheck to their retirement savings while employers contribute 4.7%, for an average of 14.2%.
“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.”
IRA savings see strong growth
Those who save in individual retirement accounts (IRAs) also increased their contributions—up 23% from Q4 2024. This marked a record high for IRA contributions made in the fourth quarter, for an average retirement account balance of $137,095, reports Fidelity.
Gen Xers, many whom plan to retire within the next five to 10 years, have also increased their contributions as they prepare for retirement. Gen X contributions to IRAs were up 25% year-over-year.
Women savings hit milestone
As women take charge of their finances at home, Fidelity’s findings note a strong correlation in savings behaviors. Average 401(k) balances among women have grown 22% over the past five years, compared to 20% of savers overall.
Further, women who have participated in their 401(k) plan for over 15 years held an average account balance of $508,700 at the end of 2025, and nearly four in 10 increased their savings rates in 2025.
Fidelity’s findings underscore a period of continued growth for one of the world’s largest asset managers. The Boston-based firm reported a record year in 2025, with assets growing over $1 trillion and revenue rising 15% year-over-year.
In its annual report on Monday, Fidelity disclosed holding assets under administration (AUA) of $17.5 trillion, including discretionary assets of $6.8 trillion as of September 30, 2025.