401(k) account balances hit another record high in the third quarter, 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 monthly budgets, Social Security is in poor financial shape, and financial market volatility is a fact of life.
Fidelity's Q3 2025 Retirement Analysis is out, enabling savers to check and see where they stand vs their peers.
The good news? At the end of September 2025, savers in Fidelity 401(k) plans sported a record-setting average account balance of $144,400, up 5% from the second quarter ending June 30.
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. For example, they don't factor in important 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 starting out with extremely low balances.
Still, average account balances provide a way to benchmark your account against peers.
"These average balances can give people an idea of where they might be, given their age," said Kelly LaVigne, vice president and head of annuity 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 than the average American."
Average 401(k) balance by age and generation
Powered by investors' consistent savings and stock gains driven by Magnificent Seven stocks (which accounted for two-thirds of the S&P 500's gain in the July through September quarter, according to S&P Dow Jones Indices) the average 401(k) balance kept climbing in the third quarter of 2025, rising $6,600 from the previous quarters record high of $137,800, according to Fidelity Investments’ Q3 (third quarter) 2025 Retirement Analysis.
Here's the average 401(k) balance by generation and age as of September 30, 2025, according to Fidelity's report, which is based on the 24.8 million 401(k) accounts it manages.
Generation |
Age Range |
Avg. 401(k) Balance Q3 2025 |
Avg. 401(k) Balance Q2 2025 |
|---|---|---|---|
Gen Z |
Born 1997-2012 / Age 13-28 |
$17,000 |
$13,900 |
Millennials |
Born 1981-1996 / Age 29-44 |
$80,700 |
$66,800 |
Gen X |
Born 1965-1980 / Age 45-60 |
$217,500 |
$187,400 |
Boomers |
Born 1946-1964 / Age 61-79 |
$267,900 |
$239,600 |
Table Data Source: Fidelity Investments.
The record-setting quarter is good news for retirement savers.
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. 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 third quarter of 2025 (ending September 30). The rise in account balances was driven by consistent savings by 401(k) plan participants and positive stock market performance, according to Fidelity.
A few key trends were highlighted in Fidelity's third-quarter report. The adoption of Roth 401(k)s is on the rise. Nearly one in five (17.5%) 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 95% of Fidelity plans, is that withdrawals in retirement are tax free. Also, Fidelity's third-quarter retirement analysis spotlights the increasing adoption of "auto portability" — an automatic rollover service for employees moving small retirement savings from one employer to another. The goal is to help 401(k) participants preserve their savings by making it easier to roll money over to an IRA when they switch jobs, rather than cashing out and paying a 10% early withdrawal penalty and missing out on future gains.
Another positive development is that one in 10 of Fidelity 401(k) plan participants increased their savings contribution rate. The average employee contribution rate was $2,420 in the third quarter of 2025, up from $2,350 in the third quarter of 2024, according to Fidelity.
Still, what jumps out in the latest savings data is how low these 401(k) balances are vs what most savers think they will need to retire comfortably.
"Americans' 'magic number' to retire comfortably remains high, far beyond what many people have actually saved," said John Roberts, executive vice president and chief field officer at Northwestern Mutual.
U.S. adults estimate that the magic number for retirement savings is $1.26 million (down from $1.46 million last year), as an April 2025 study by Northwestern Mutual reported.
Working Americans who currently participate in a Charles Schwab 401(k) plan believe they will need to save $1.6 million, according to Schwab's latest annual nationwide survey of its 401(k) plan participants published in July.
"What the (average 401(k) balances by age) tells us is investors are not saving enough to afford a comfortable retirement," said Anthony Ogorek, president and founder of Ogorek Wealth Management.
Let's also 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, as measured by the multiples of salary a worker should save by a given decade in life.
Here's the average 401(k) balance by age as of September 30, 2025, according to Fidelity.
Age |
Avg. 401(k) Balance Q3 2025 |
Avg. 401(k) Balance Q2 2025 |
You should have saved at least |
|---|---|---|---|
20s |
$20,800 |
$20,100 |
|
30s |
$67,600 |
$63,800 |
Salary x 1 |
40s |
$143,700 |
$136,600 |
Salary x 3 |
50s |
$243,500 |
$231,900 |
Salary x 6 |
60s |
$266,100 |
$255,200 |
Salary x 8 (and 10x by age 67) |
70s |
$271,600 |
$259,000 |
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, senior vice president and national director of wealth planning at Comerica Wealth Management. “Use it as a catalyst to make needed changes to boost your savings."
Consider using general rules or savings guideposts to better help you determine how much you need to save, gauge if you're on track and whether you need to tweak your savings strategy. Hopefully, eyeballing these guideposts will serve as a wake-up call to prompt action.
Fidelity, for example, recommends using savings milestones that home in on two savings data points that are more specific to you: your age and your salary, says Michael Shamrell, vice president of workplace 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. Are you on the right road? Do I need to make a turn? 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 less crisis-like for long-term savers, Fidelity data show. What might look like a low balance today can grow in value over time with 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 $613,200 and $459,000 for those saving for 10 straight years, Fidelity's third-quarter 2025 data show.
The power of long-term investing is highlighted by the fact that the account balances of women who have contributed to the same 401(k) for the past 15 years crossed the $500,000 mark for the first time ever in the third quarter of 2025, according to Fidelity. The average balance for this female cohort was $501,100 at the end of September 2025.
"This savings milestone is something we wanted to highlight," said Shamrell. "It's just another example of taking a long-term approach and saving consistently."
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 owning too big 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 5.5% of Fidelity 401(k) plan participants made changes to their asset mix in the third quarter despite ongoing volatility and concerns about the strength of the economy, according to Fidelity.
"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,” said Sharon Brovelli, president of workplace investing at Fidelity Investments.
The stock market, however, is prone to volatility. While it is up solidly in 2025, an eventual price pullback is inevitable.
Shamrell says staying invested through all market conditions is the key to long-term 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, says Northwestern Mutual’s Roberts.
"People who have an offense-only investments approach are left vulnerable when the unexpected occurs," said Roberts.
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 (26.8%) Fidelity 401(k) plans in the third quarter of 2025 now come with employer-set auto-escalation features, up from less than 20% in the third quarter of 2020, according to the Fidelity study.
Don’t miss your employer's match. Nearly eight in 10 (77.3%) of Fidelity 401(k) plan participants received a company match in the third 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 with 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, 2026 401(k) contribution limits for those over 50 of $32,500.
If you are aged 60 to 63, however, you can save even more. Starting in 2025 and continuing in 2026, thanks to the Secure Act 2.0, savers ages 60-63 can boost their catch-up contribution 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 is a way to achieve proper exposure to stocks.
In this year's third quarter, two-thirds (62.8%) 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.
The key, though, is to set realistic savings goals, says Brad Bartick, a wealth planner at investment firm Baird.
"Setting an unachievable goal may douse the (savings) fire before it has a chance to build because discouragement invites the risk of halting savings," said Bartick.
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?
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