Key facts
- Americans' 401(k) balances hit record levels in 2025.
- Median 401(k) account balances increased by 27% in 2025.
- The median 401(k) balance reached $44,115 in 2025.
- The average 401(k) balance reached $167,970 in 2025.
- Strong market returns contributed to the growth in 401(k) balances.
- Increased employee contributions also drove the growth in 401(k) balances.
- Auto-enrollment policies influenced increased employee contributions.
In 2025, American retirement savings accounts, specifically 401(k)s, achieved record levels. The median balance within these accounts saw a significant increase of 27%, reaching $44,115. Furthermore, the average balance across all accounts climbed to $167,970. This notable growth is primarily attributed to two key factors: strong positive returns in the financial markets and a rise in the amount of money employees are contributing to their plans. The increasing prevalence of auto-enrollment policies is also cited as a contributing factor to these higher contribution rates. These trends indicate a generally positive environment for retirement savings among Americans during this period.