Key facts
- Retirement account balances in the U.S. hit all-time highs in the third quarter of 2025.
- The average 401(k) account balance rose 9% year-over-year to $144,400.
- The average IRA balance increased 7% to $137,902.
- The number of 401(k) accounts with over $1 million grew 10% to 654,000.
- Younger generations, particularly Gen Z, are increasingly contributing to Roth 401(k)s and Roth IRAs.
Americans' retirement savings accounts have reached record highs, with average balances in 401(k)s and IRAs climbing significantly in the third quarter of 2025. This surge is attributed to a recovering stock market, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posting substantial gains. Despite economic concerns and new tariffs introduced earlier in the year, individuals maintained a steady average 401(k) contribution rate of 14.2 percent, slightly below the recommended 15 percent.
The data from Fidelity Investments also revealed a record number of retirement millionaires. The count of 401(k) accounts holding over $1 million increased by 10 percent from the previous quarter to 654,000, while IRA millionaires grew by 11.5 percent to 559,181 accounts. Younger generations, particularly Gen Z, are showing a strong preference for Roth accounts, with one in five Gen Z 401(k) participants and 95 percent of Gen Z IRA contributions directed towards Roth versions.
Fidelity executives highlighted the positive impact of consistent savings behaviors and a long-term investment view. The growing interest in Roth products is recognized for their potential tax advantages and long-term growth. Looking ahead, contribution limits for Roth 401(k)s and Roth IRAs are expected to increase in 2026, potentially encouraging even higher savings rates.