401(k) retirement accounts have been in wealth-building mode the past three years. Investors who have stayed the course through the market's ups and downs saw their 401(k)s rise by double digits for a third straight year in 2025, according to Fidelity Investments.
Is your 401(k) balance keeping up with the Joneses?
Saving for retirement remains a source of angst for many Americans in a world where traditional pensions are fading into obscurity, inflation is eating into budgets, Social Security is in poor financial shape, and financial market volatility is a fact of life.
Fidelity's Q4 2025 Retirement Analysis is out.
The good news? At the end of December 2025, savers in Fidelity 401(k) plans sported a record-setting average account balance of $146,400, up 11.2% from the fourth quarter of 2024.
Seeing how your nest egg stacks up against the average 401(k) balance for other people your age is a good way to gauge if you're on track for retirement.
Average retirement savings totals don't take into account your specific circumstances, of course. They don't factor in key variables such as salary, investment return projections, how many years you have before retirement, longevity estimates or how much money you’ll need in retirement.
Balance averages can also be skewed by super savers with high balances or young workers with extremely low balances.
"These average balances can give people an idea of where they might be, given their age," said Kelly LaVigne, senior director of advanced markets at Allianz Life Insurance Company of North America.
But looking at average balances doesn't really explain retirement readiness.
"This information tells us what the average American has saved," said LaVigne. "But personal finances are, well, personal. Your financial picture may look much different."
Average 401(k) balance by age and generation
Powered by investors' consistent savings and a three-year-old bull market, the average 401(k) balance kept climbing in the fourth quarter of 2025, rising $2,000 from the previous quarter's record of $144,400, according to Fidelity Investments’ Q4 (fourth quarter) 2025 Retirement Analysis.
Here's the average 401(k) balance by generation and age as of December 31, 2025, according to Fidelity's report, which is based on the 24.8 million 401(k) accounts it manages.
Generation |
Avg. 401(k) Balance Q4 2025 |
Avg. 401(k) Balance Q3 2025 |
% With 401(k) Loan Q4 2025 |
|---|---|---|---|
Gen Z |
$17,900 |
$17,000 |
8.0% |
Millennials |
$83,700 |
$80,700 |
19.7% |
Gen X |
$222,100 |
$217,500 |
25.8% |
Boomers |
$270,800 |
$267,900 |
14.0% |
Table Data Source: Fidelity Investments.
The total savings rate for Fidelity 401(k) participants remained steady at 14.2%, just a tad shy of the record high of 14.3% in the first quarter of 2025. The high savings rate, however, remains close to Fidelity's recommended annual savings rate of 15% (which includes both employer and worker contributions).
Balances increased for all age groups in the fourth quarter of 2025 (ending December 31).
'Do it for me' (DIFM) investors and other trends
A few key trends were highlighted in Fidelity's latest report. One is the rise of what Fidelity dubs "do it for me" (DIFM) retirement savers, who are now more common than DIY investors, or "do it yourself" savers. DIFM savers are those who invest their 401(k) money in age-appropriate target-date funds.
"Target-date funds are good for people who don't want to worry about asset allocation," said Falko Hoernicke, senior portfolio manager at U.S. Bank Private Wealth Management. "By selecting a fund that aligns with their anticipated retirement year, investors benefit from professional asset allocation, diversification and ongoing (portfolio) rebalancing."
These funds automatically do what investors once did manually, which makes it less likely investors will let fear rule their investment decisions, adds Erin Kolo, senior VP and manager, PWM equity and fixed income research at Baird. "It removes some of the emotion and second-guessing," said Kolo.
The adoption of Roth 401(k)s also continues to rise. Nearly one in five (18.0%) of Fidelity plan participants now contribute to a Roth 401(k). The main perk of Roth 401(k)s, which are funded with after-tax dollars and now offered by virtually all (97%) of Fidelity plans, is that withdrawals in retirement are tax-free.
Another positive development: Fidelity 401(k) plan participants boosted their savings last year. The average employee contribution was $9,080 in 2025, up from $8,810 in 2024.
In what could be a sign of financial strain, the Fidelity report also shows that Gen X has the highest percentage (25.8%) of outstanding 401(k) loans.
How much you need to save for retirement, by age
Let's look at average 401(k) balances by age band, which shows how much account holders have saved during each decade of their lives.
Compare that with Fidelity's recommended retirement savings amount by age, measured as the multiples of salary a worker should save in a given decade of life.
Here's the average 401(k) balance by age as of December 31, 2025, according to Fidelity.
Age |
You should have saved at least |
Avg. 401(k) Balance Q4 2025 |
Avg. 401(k) Balance Q3 2025 |
|---|---|---|---|
20s |
$21,200 |
$20,800 |
|
30s |
Salary x 1 |
$69,000 |
$67,600 |
40s |
Salary x 3 |
$145,700 |
$143,700 |
50s |
Salary x 6 |
$246,700 |
$243,500 |
60s |
Salary x 8 (and 10x by age 67) |
$269,100 |
$266,100 |
70s |
$273,100 |
$271,600 |
If your 401(k) balance is below the averages listed above, don’t despair.
“Your reaction shouldn't be giving up, or saying, ‘Oh no, I’m so far behind, I'll never make it up,' " said Lisa Featherngill, national director of wealth planning at Comerica Wealth Management. “Use it as a catalyst to make needed changes to boost your savings."
Consider using savings guideposts to better determine how much you need to save, gauge whether you're on track and decide whether you need to tweak your savings strategy.
Fidelity, for example, recommends using savings milestones that home in on two data points specific to you: your age and your salary, says Michael Shamrell, vice president of thought leadership at Fidelity.
Using Fidelity's guidelines, you should aim to save one times your salary by age 30, three times your pay by age 40, six times by 50, eight times by 60, and 10 times by age 67.
If you're 50 now and earn $100,000, you should have $600,000 socked away. If your salary rises to $125,000 as you near retirement, you'll need $1.25 million saved by the time you're 67, which is when most Americans reach full retirement age and are eligible to receive full Social Security benefits.
"It helps you know where you are on your savings journey, sort of like a map if you're driving from San Francisco to Dallas," said Shamrell. "You want to know if you're headed in the right direction. It helps savers know if they’re on track or if they need to make any changes."
Act, don't panic if you're behind
The good news? 401(k) savings balances are far larger for long-term savers, Fidelity data show. What might appear to be a low balance today can grow over time through steady saving, portfolio gains, and compounding.
For example, the average balance for savers who've been investing in the same 401(k) continuously for 15 years was $617,600 and $465,000 for those saving for 10 straight years, Fidelity's fourth-quarter 2025 data show.
It's vital that retirement savers build a diversified portfolio of stocks, bonds, cash and other assets so they don't suffer large losses from, say, a 100% stock portfolio or from owning too large a stake in a single company when markets turn volatile.
It's also important for investors to keep their emotions in check and not bail out of the market due to fear when volatility strikes. The good news is that only 5.4% of Fidelity 401(k) plan participants changed their asset mix in the fourth quarter of 2025, despite ongoing market volatility, according to Fidelity.
"Retirement savers remain committed to their financial futures by staying the course,” said Sharon Brovelli, president of workplace investing at Fidelity Investments.
The stock market is prone to volatility. Through March 11, the S&P 500 is down about 1% and has been whipsawed by the U.S. attack on Iran and the resulting spike in oil prices and investor uncertainty.
Shamrell says staying invested through all market conditions is the key to success.
"We encourage people to remember that saving for retirement is a marathon, not a sprint," said Shamrell.
Having a retirement portfolio with a diversified mix of stocks, bonds, and liquid assets like cash can reduce risk, keep losses manageable, and help investors stay invested in the event of a market downturn.
Here are ways to play catch-up if you're behind on your savings.
Save more. Fidelity recommends saving 15% of your salary, including your company's matching contribution. To reach that goal, boost your 401(k) savings when you get a raise or bonus, or commit to saving 1% more each year until you reach your savings target. Signing up for automatic savings increases is a smart move. In fact, one in four (27.1%) Fidelity 401(k) plans in the fourth quarter of 2025 now come with employer-set auto-escalation features, up from 20% in the fourth quarter of 2020, according to the Fidelity study.
Don’t miss your employer's match. Eight in 10 (88.1%) of Fidelity 401(k) plan participants received a company match in the fourth quarter of 2025. The key is to contribute enough to earn the full match, so you don't leave money on the table.
"This can help accelerate your retirement savings," said Sarah Darr, head of financial planning at U.S. Bank Wealth Management.
A popular match is based on a 5% employee contribution rate. Typically, the employer contribution rate matches 100% of the first 3% of employee contributions, and 50% of the next 2%. If you make $100,000 and contribute 5%, or $5,000, to your 401(k), your employer will chip in another $4,000 with the match.
Take advantage of catch-up provisions. For 2026, the 401(k) contribution limit for workers under age 50 is $24,500 (up from $23,500 in 2025). The catch-up contribution limit for workers age 50 and older is $8,000 in 2026 (up from $7,500 in 2025). So, the 2026 401(k) contribution limit for those over 50 is $32,500.
If you are aged 60 to 63, however, you can save even more. Starting in 2025 and continuing in 2026, under the SECURE 2.0 Act, savers ages 60-63 can boost their catch-up contributions to $11,250, according to the IRS. This super catch-up provision should help workers near retirement make up for leaner years when they might not have contributed enough.
Invest more aggressively. Assets with growth potential, such as stocks, will give you a better chance of building a larger nest egg. A target-date fund that determines your mix of stocks and bonds based on your age and retirement date is one way to achieve appropriate exposure to stocks.
In the 2025 fourth quarter, two-thirds (63.0%) of Fidelity 401(k) participants had all their money invested in a target date fund, according to Fidelity.
"It's never too late to save for retirement," said LaVigne.
Get the full story: What you're worth
Want to see how more of your retirement portfolio compares with peers? Read:
Average Retirement Savings by Age
The Average IRA Balance by Age
Average Social Security Check by Age
Average 401(k) Fund Fees and Expenses: Are You Overpaying?
