Rebounding from a down stock market-induced decline in average balances during the first quarter of 2025, average account balances at Fidelity Investments went back to reaching record highs during the second quarter of the year.
“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.”
Fidelity’s Sharon Brovelli
Today Boston-based Fidelity released its Q2 2025 Retirement Trends analysis, looking at the average retirement balances for more than 51 million retirement savers utilizing 401(k)s, 403(b)s and IRAs.
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 in Q2 2025 increased by 8% from a year prior to $137,800. That was also up substantially from Q1’s average balance of $127,100, which was down 3% from Q4 2024 after the stock market struggled early in the year.
The average 403(b) balance increased 9% to $125,400 and the average IRA balance increased 5% since Q2 2024 to $131,366. Over the past decade, IRA average balances have increased 40% while 401(k) balances have risen 51%, but the biggest winner has been 403(b) balances, which are up 69% since Q2 2015.
Today’s report also showed that only 5.5% of retirement savers changed their 401(k) asset allocation in Q2 2025. Among those, 82.5% made only one change to their allocation.
“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.”
With the market volatility experienced earlier in the quarter, Robert Mascialino, president of Wealth at Fidelity Investments, said it’s understandable that some retirement savers may feel uncertain about how their balances are being impacted. “However, we’re seeing solid 401(k) contributions and more people adding to their IRAs—especially Baby Boomers and Gen X, who are continuing to prioritize retirement. It’s encouraging to see customers focus on the long game when it comes to investing for retirement.”
New 401(k) Millionaire Record
The 401(k) account balance rebound resulted in a related rebound in the number of “401(k) Millionaires,” so-called for their seven-figure account balances. The new all-time high as of the end of Q2 2025 is 595,000 401(k) Millionaires, up from 512,000 at the end of Q1 and topping Q4 2024’s 537,000.
Spotlight on higher education
This quarter’s analysis also spotlights how higher education employees are faring in their retirement savings journey by delving into a new Fidelity report focused on retirement preparedness for this group.
While Fidelity’s recent Retirement Preparedness of Higher Education Employees study 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.
The study shows an average age of 50 and tenure of 14 years, with 84% participating in workplace savings plans and an impressive 19.1% average savings rate. They have an average income of $108,000 and an average 403(b) account balance of $369,000.
For employees hired before age 35, where the university’s plan is likely their primary retirement benefit, 78% currently meet Fidelity’s “on track” threshold for retirement income.
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.
SEE ALSO:
• 401(k) Balances Down in Q1, But Deferral Rates Hit Record High
• Plans with Automatic Features Boast Stronger Account Balances