Key facts
- Retirement account balances in the U.S. reached all-time highs in Q3 2025.
- The average 401(k) balance increased 9% year-over-year to $144,400.
- The average IRA balance increased 7% year-over-year to $137,902.
- The number of 401(k) accounts with over $1 million grew 10% to 654,000.
- The average 401(k) contribution rate remained steady at 14.2%.
Retirement account balances in the United States reached all-time highs in the third quarter of 2025, driven by a combination of consistent savings behaviors and a recovering stock market. According to Fidelity Investments, the average 401(k) account balance grew 9 percent year-over-year to $144,400, while the average individual retirement account (IRA) balance increased 7 percent to $137,902.
This marks the sixth consecutive quarter of growth since mid-2023. The U.S. stock market rebound contributed significantly, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting gains for the year through September 30. Despite economic concerns and new tariffs, Americans maintained an average 401(k) contribution rate of 14.2 percent, including employer contributions.
The surge in account growth also led to record numbers of retirement millionaires. Fidelity reported a 10 percent increase in 401(k) accounts holding over $1 million, reaching 654,000, and an 11.5 percent rise in IRA millionaires to 559,181 accounts as of September 30, 2025.
Younger generations, particularly Millennials and Gen Z, are increasingly opting for Roth IRAs and Roth 401(k)s, attracted by the potential for tax-free withdrawals in retirement. One in five Gen Z 401(k) participants now directs contributions to Roth versions, and 95 percent of Gen Z IRA contributions are flowing into Roth accounts. The popularity of Roth IRAs has risen to 77 percent of all IRAs on Fidelity's platform.
Robert Mascialino, president of wealth at Fidelity Investments, noted the long-term view investors are taking and their recognition of Roth products' potential for tax advantages and growth. Mike Shamrell, Fidelity’s vice president of thought leadership, highlighted positive behaviors among younger workers, and Sharon Brovelli, president of workplace investing, emphasized the impact of sustained savings habits.