Retirement savings are a cornerstone of long-term financial security for millions of Americans. The health of 401(k) and IRA balances offers a snapshot not only of individual households’ financial footing, but also of broader market conditions and confidence in the economy.
Record account levels in the third quarter of 2025 reflect consistent saving habits, a recovering stock market, and shifting strategies across generations. Together, these trends offer insight into how Americans are building wealth for both current and future retirement.
What To Know
Retirement account balances in the United States climbed to all-time highs in the third quarter of 2025, according to a new report from Fidelity Investments.
The country’s largest 401(k) provider reported that the average 401(k) balance rose 9 percent year over year to $144,400.
Similarly, the average individual retirement account (IRA) balance increased 7 percent to $137,902.
The report, released on November 20, marks the sixth straight quarter of quarter-over-quarter growth since mid-2023, even as investors navigated economic uncertainty and market volatility earlier in the year, reports Investment News.
Rising balances were driven by a combination of steady contributions and a broad rebound in U.S. stocks. Major indexes such as the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all logged solid gains through September 30.
Despite concerns about the economy and disruptions tied to new tariffs introduced earlier in the year, Americans kept their average 401(k) contribution rate at 14.2 percent (including both employee and employer contributions).
While that is just under Fidelity’s recommended 15 percent savings rate, it still points to resilience and a long-term mindset among participants.
The surge in balances also pushed the number of so-called “401(k) millionaires” to new highs.
Fidelity reported that the number of 401(k) accounts with more than $1 million grew 10 percent from the prior quarter to 654,000, while IRA millionaires increased 11.5 percent to 559,181 accounts as of September 30, 2025, per CNBC.
Younger savers—especially Millennials and Gen Z—are increasingly turning to Roth IRAs and Roth 401(k)s, which offer tax-free withdrawals in retirement.
One in five Gen Z 401(k) participants now directs contributions into Roth options, and 95 percent of Gen Z IRA contributions are going into Roth accounts.
The share of Roth IRAs rose to 77 percent of all IRAs on Fidelity’s platform, up from 71 percent four years earlier, according to Investment News.
What People Are Saying
Robert Mascialino, president of wealth at Fidelity Investments, said: “Retirement is about taking a long-term view, and the growing interest in Roth products shows that investors recognize their potential for tax advantages and long-term growth.”
Mike Shamrell, Fidelity’s vice president of thought leadership, noted: “We’re seeing a lot of positive behaviors among younger workers, especially Gen Z.”
Sharon Brovelli, president of workplace investing at Fidelity, added: “Americans are continuing to exhibit impactful savings behaviors such as staying the course and focusing on long-term goals, which clearly is having a positive effect on retirement savings.”
What Happens Next
More Americans may be motivated to increase their savings even further as contribution limits rise in 2026. Roth 401(k) plans will allow up to $24,500 in annual contributions, while Roth IRAs will permit up to $7,500 per year for savers under age 50.
