401(k) Saver Balances Reach Record Growth Amid Rising Contributions
Workers are increasing their 401(k) contribution rates despite ongoing financial pressures, leading to record growth in retirement savings. Fidelity Investments reported that average balances rose by 10.5% during the second quarter of 2026 — the strongest quarterly increase since late 2020 — driven partly by stock market gains and consistent contributions from employees and employers. The total number of savers with $1 million or more in their accounts has reached 769,000. However, some workers are also withdrawing funds for immediate needs: nearly one-fifth had an outstanding loan on their account, while hardship withdrawals increased to 3%. Despite these challenges, many employees contributed enough to receive full employer matches and boosted contributions overall. Average balances across retirement accounts show generational disparities, with baby boomers holding the highest average amounts. Experts emphasize that individual financial situations vary widely, so comparing savings against averages may not be a reliable indicator of progress toward retirement goals.
Topics: 401(k) employee contributions Fidelity Investments retirement savings