Fidelity Reports Record High Average Balances for 401(k)s in Q2 2026
In the second quarter of 2026, Fidelity Investments reported that average balances in its administered 401(k) plans reached a record high of $155,800 — up 13.1% from the previous year. This marked one of the strongest quarterly performances since Q4 2020 and was driven by market recovery following an earlier sell-off linked to the Iran war. Average IRA balances also hit a record high, rising 10% year-over-year to $144,523. Strong savings behavior contributed significantly, with combined employer-employee contributions averaging 14.4%, close to Fidelity’s recommended target of 15%. Female participants in both 401(k)s and IRAs also saw notable gains. Despite the positive trends, signs of financial strain emerged: nearly a fifth of workers had outstanding 401(k) loans, while hardship withdrawals increased slightly. Experts caution that such actions can disrupt long-term retirement planning.
Topics: 401(k) Fidelity Investments IRA market performance savings behavior