Fidelity Reports Record 401(k) and IRA Balances

Average 401(k) and individual retirement account (IRA) balances reached record highs in the second quarter of 2026, according to data from Fidelity Investments. The average 401(k) balance rose to $155,800, a 13.1% increase year-over-year and a 10.5% jump from the first quarter. Average IRA balances increased 10% to $144,523, while 403(b) balances hit a record $145,000. These gains followed a softer first quarter and were driven by strong market performance and consistent contribution rates, which averaged 14.4% of paychecks.

Growth was particularly notable among specific demographics. Women who participated in a 401(k) for at least five years surpassed an average balance of $250,000 for the first time, and small-business retirement accounts grew 178% since 2021, with Millennials emerging as the most active cohort. Over 81% of participants contributed enough to secure their full employer match.

Despite these records, Fidelity reported an increase in account leakage as workers manage financial stress. The share of workers with outstanding 401(k) loans rose to 19.5%, and hardship withdrawals increased to 3% year-over-year. Sentiment polling shows 55% of savers remain concerned about the economy, with 46% stressed by the cost of living. Experts attribute this trend to an affordability crunch and persistent inflation affecting housing, groceries, and gasoline.