Americans, as a whole, have been boosting their 401(k) balances. New Bank of America data found that the average 401(k) account balance increased by 13% in 2025, reaching more than $113,000 by year-end. The data also showed that the average contribution rate remained steady at 7.2%.
At first glance, those numbers sound encouraging. But a closer look shows that while many workers are saving consistently, plenty are still falling short of what they may ultimately need for retirement.
