Fidelity Retirement Accounts Surge Back to Record Highs in Q2

After a dip in the opening months of the year, American retirement savers are once again seeing record balances in their accounts, according to new data from Fidelity Investments.

In its latest “Retirement Trends” report, released Thursday, the Boston-based firm revealed that the average 401(k) balance in Fidelity accounts in the second quarter of 2025 rose to $137,800—an 8% increase from one year earlier and a sharp recovery from $127,100 in Q1. Fidelity attributed the rebound to steady contributions and stronger market performance, despite volatility at the start of the quarter.

Average balances for other plans also climbed: 403(b) accounts gained 9% to $125,400, while individual retirement accounts rose 5% to $131,366. Over the past decade, Fidelity reported, 403(b) accounts had the steepest growth, up 69%, compared with 51% for 401(k)s and 40% for IRAs.

Notably, the number of so-called 401(k) millionaires—savers with balances topping $1 million—hit a record 595,000 at the end of June. That’s up from 512,000 at the close of March and greater than the previous high of 537,000 set late last year.

“Even during periods of turbulence, the majority of savers are wisely making the decision to stay the course and not make sudden changes to their retirement investments,” said Sharon Brovelli, Fidelity Investments’ president of workplace investing, in a statement. “This diligence and focus on long-term retirement goals contributed to this quarter’s retirement balance rebound, demonstrating the importance of staying calm and not overreacting to market changes.”

According to Fidelity, just 5.5% of savers altered their 401(k) asset allocations during the quarter, with most making only one adjustment. That restraint, Fidelity suggested, helped account balances recover more swiftly.

Robert Mascialino, Fidelity’s president of wealth, noted that ongoing contributions are proving particularly resilient among older generations.

“We’re seeing solid 401(k) contributions and more people adding to their IRAs—especially Baby Boomers and Gen X, who are continuing to prioritize retirement,” he said in a statement. “It’s encouraging to see customers focus on the long game when it comes to investing for retirement.”

Fidelity’s quarterly report also spotlighted retirement readiness among higher education employees. A separate Fidelity study found that 84% of workers in the sector are enrolled in workplace savings plans, with an average savings rate of 19.1%. The average 403(b) balance for this group reached $369,000, backed by an average income of $108,000 and an average tenure of 14 years.

Still, disparities remain. 

While most older employees are on track, the sector-specific report flagged younger staff and women as groups facing greater challenges in meeting long-term savings targets. Among employees who began participating before age 35, 78% were on track to meet Fidelity’s retirement income benchmarks.