A Third of Fidelity 401(k)s Have Adopted Auto Portability
More than 9,200 401(k) plans recordkept by Fidelity Investments—representing 3.7 million active 401(k) participants—have adopted auto portability since the Portability Services Network (PSN) went live in October 2022, Fidelity reported today in its Q3 2025 Retirement Trends analysis.
This quarter’s analysis puts a spotlight on the increasing adoption of auto portability—an automatic rollover service for employees moving small retirement savings from one employer to another. As a founding member of PSN—a consortium of service providers accelerating the adoption of auto portability – Fidelity said it has been committed to helping workers retain their retirement savings when changing employers. The more than 9,200 Fidelity 401(k) plans that have adopted auto portability has resulted in $24 million in retirement savings preserved in Fidelity 401(k) plans.
The 9,200 plans that have adopted auto portability equates to slightly over one-third of the 26,500 corporate defined contribution plans Fidelity reported having as of June 30, 2025. As of Sept. 30, 2025, PSN reports that 20,997 401(k) plan sponsors had elected to adopt auto portability.
Preserving small retirement account balances instead of job-changing participants cashing them out can make a big difference to retirement security over time. According to Retirement Clearinghouse’s Cashout Calculator, a 30-year-old who cashes out a $7,000 balance will net only $4,900, while the same participant who preserves their savings could see them grow to over $74,000 by retirement at age 65, assuming 7% annual returns.
Rising Roth interest
Fidelity’s Q3 Retirement Trends analysis found that Roth savings vehicles are increasing in interest among retirement savers—particularly among younger generations—likely in large part due to their tax-efficiency over the long term.
“The growing interest in Roth products shows that investors recognize their potential for tax advantages and long-term growth.”
Fidelity’s Robert Mascialino
Third-quarter data show 20% of Gen Z 401(k) participants are choosing to contribute to a Roth 401(k), up from 16% in 2024. The data shows 19% of Millennials contribute to a Roth 401(k). Similarly, Roth IRAs continue to be the IRA of choice among younger savers, with Gen Z investing 95% of their contributions in Roth accounts (rather than a traditional IRA).
Three in four (75%) of Millennials are contributing to a Roth IRA, compared to 66% of Gen X.
“Retirement is about taking a long-term view, and the growing interest in Roth products shows that investors recognize their potential for tax advantages and long-term growth,” said Robert Mascialino, president of Wealth at Fidelity Investments. “By creating a plan and saving consistently, investors of all ages are positioning themselves for a financially secure retirement.”
Average balances hit new highs
Driven by consistent savings and positive stock market performance, Fidelity reported record-high account balances across 401(k)s, 403(b)s and IRAs in Q3 2025, with the average 401(k) balance marking the sixth quarter-over-quarter average balance increase in the last eight quarters (since Q3 2023).
The average 401(k) account balance at Fidelity is $144,400 in Q3 2025, up 5% from Q2 and up 9% year-over-year. The average 403(b) account balance is $131,200 in Q3 2025, up 5% over last quarter and 10% from a year ago.
The average IRA balance is $137,902 as of Q3 2025, up 5% from last quarter and 7% from a year ago.
Notably, today’s Fidelity report also revealed that the overall savings rate at Fidelity remained consistent at 14.2% for the second quarter in a row. That’s made up of an average employee contribution rate of 9.5% and an employer contribution rate of 4.7%.
Another notable finding from the report is that the average 401(k) account balance for women who have been in their 401(k) for 15 years continuously topped the half-million mark for the first time ever, clocking in at $501,100. That’s a 16.5% increase from Q3 2024.
“Americans are continuing to exhibit impactful savings behaviors such as staying the course and focusing on long-term goals, which clearly is having a positive effect on retirement savings,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “To see balances and saving behaviors increase across all savings vehicles is encouraging, especially as savers continue to navigate an uncertain economic environment.”
SEE ALSO:
• Auto Portability: Meeting the Needs AND Wants of Participants
• Why Preserving Small Balances Matters (and How Auto Portability Helps)
• Average 401(k) Balances Back to Reaching Record Highs in Q2: Fidelity
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
