The typical 401(k) account saw an 11% increase in 2025

Retirement Savings Trends: Insights from Recent Data

According to Fidelity, close to 40% of women participating in 401(k) plans boosted their contribution rates last year. Among women who have consistently saved for at least 15 years, the average account balance now exceeds $500,000.

Market Fluctuations and Investor Confidence

Anyone observing the stock market’s reaction to recent global events may feel uneasy about their investments. However, last year demonstrated that short-term market swings and sharp daily declines do not necessarily predict how a portfolio will perform over the course of a year.

401(k) Growth Despite Volatility

Despite significant market turbulence in 2025, particularly during the spring, the average 401(k) account grew by 11% to reach $146,100, based on Fidelity Investments’ review of nearly 25 million accounts. This marks the third year in a row that workplace retirement plans have seen double-digit percentage increases, a result of both strong market returns and steady saving habits among participants.

• The S&P 500 finished last year up 16.39%
• The Nasdaq climbed over 20%
• The S&P Aggregate Bond Index gained 2.91%

Participants contributed an average of 14.2% of their income to their 401(k), which includes a 9.5% employee contribution and a 4.7% employer match—similar to the previous year.

Understanding the Numbers

While the average 401(k) balance across all ages is $146,000, this figure is much higher than the median balance of $34,400, meaning half of all accounts hold less than this amount. These statistics include all participants, regardless of age or how long they’ve been saving.

For those who have been contributing for at least 15 years, the median balance rises to $377,700. At the top end, 665,000 accounts had balances of $1 million or more at the end of last year, up from 537,000 in 2024. On average, these high-balance savers have been investing for 25 years.

Gen X and Retirement Readiness

Gen Xers—born between 1965 and 1980—hold the majority (60.3%) of accounts with over $1 million, positioning them as the next group approaching retirement. In contrast, Millennials make up just 4.1% of these high-value accounts.

Overall, Gen X’s retirement preparedness is mixed. Last year, they saved an average of 15.4% of their gross income, with about 10% making additional catch-up contributions. Those aged 50 and above could contribute an extra $7,500 beyond the standard $23,500 federal limit, while individuals aged 60 to 63 had an even higher catch-up limit of $11,250.

Despite these efforts, the typical Gen X 401(k) balance stands at just $67,100. While a few may still receive traditional pensions, most entered the workforce as employers shifted from pensions to self-directed 401(k) plans.

Women’s Progress in Retirement Savings

In recognition of Women’s History Month, Fidelity shared specific data on women’s participation in 401(k) plans. The average balance for women reached $119,500, a 22% increase over the past five years—outpacing the 20% growth seen among all participants. However, the median balance for women was just $29,400 last year.

Encouragingly, nearly 40% of women increased their savings rate in the past year, including 47% of Gen Z women. Among women who have been saving for at least 15 years, the average balance climbed to $508,700, up from $453,500 in 2024.