Fidelity: Retirement Accounts Just Hit Record Highs

What a difference a few months can make. After a brutal first quarter, investors had plenty of reasons to second-guess their retirement plans as markets tumbled amid the war with Iran. But most retirement savers did exactly what advisors hope they would: they stayed the course. And they’re glad they did.

According to Fidelity’s latest retirement analysis, record savings rates help drive 401(k), 403(b) and IRA balances to new highs in the second quarter. 4%, while 403(b) savers remained at 12% for the second consecutive quarter. IRA contributions saw a huge jump, climbing 36% from a year ago. The average 401(k) balance continues to soar, rising from $137,800 last year to $155,800 this year, representing a 13% increase year-over-year and 10% quarter-over-quarter — the strongest quarterly growth since Q4 2020.

IRA’s also saw an increase with gains of 10% year-over-year as balances climbed from $131,366 to $144,523. Last but not least, 403(b) saw the biggest jump as balances soared 16% year-over-year from $125,400 to $145,000. It’s another great reminder that consistent contributions and long-term market exposure can compound into meaningful gains over time. Another encouraging sign is that 81% of 401(k) participants saved enough to receive their employer’s full matching contribution.

For advisors, that figure highlights a relatively simple planning conversation with clients: Are they taking full advantage of the benefits available through their workplace retirement plan? The quarter also offered an interesting look at retirement progress among women. Women who have continuously participated in a 401(k) plan for at least five years surpassed a $250,000 average balance, while female IRA investors reached an average balance of $130,231, up 12% from a year ago. Meanwhile, retirement access is expanding among small businesses.

Fidelity reports a 178% increase in small-business retirement accounts over the past five years, along with a 46% increase in contributions. For advisors working with business owners, that growth could create more opportunities to connect retirement planning with employee benefits and the owner’s own long-term financial goals. For advisors, the takeaway from the most recent Q2 numbers reinforces a familiar lesson: retirement progress isn’t necessarily about making dramatic moves. It’s about helping clients consistently save, capture available benefits, and remain focused on long-term goals.

When those habits stay in place, market fluctuations can become part of the journey rather than a reason to abandon the plan. For advisors, Q2 data reinforces the value of focusing clients on what they can control. Markets will move up and down, but consistent contributions, capturing employer matches, and maintaining a long-term strategy even when short-term headlines threaten to distract from long-term goals. Photo: Shutterstock