401(k) and IRA Balances Reach Record Levels Despite Increased Account Withdrawals
In the second quarter of 2026, average balances in U.S. retirement accounts reached record highs due to strong stock market performance and consistent savings rates among investors, according to a report by Fidelity Investments. The average 401(k) balance rose 13.1% year-over-year to $155,800, while the average IRA balance increased 10% from a year ago to $144,523. Despite these gains, more workers are withdrawing funds for immediate financial needs amid ongoing affordability challenges and inflationary pressures. The percentage of employees with an outstanding 401(k) loan rose slightly in 2026 compared to the previous year, while new loans increased by about 2.8% in Q2 alone. Hardship withdrawals also saw a rise from 2.6% to 3%, indicating growing financial strain for some households. Experts warn that tapping into retirement accounts can undermine long-term savings goals due to lost compounding opportunities and potential tax penalties, unless hardship exceptions apply.
Topics: 401(k) IRA balances retirement savings stock market gains