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Fidelity Investments reports a record number of 401(k) millionaires

Retirement account balances grew more than 8% in the second quarter

Updated:

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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.
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Key Insights

  • Average retirement account balances for 401(k), 403(b), and IRAs all reached new record highs in Q2 2025.
  • Despite market volatility early in the quarter, most savers stayed invested, fueling balance rebounds.
  • Higher education employees show strong savings rates, but younger workers and women still face gaps in preparedness.

It may seem like your 401(k) balance barely grows, but over time, it can produce impressive results. Fidelity Investments reports balances saw significant growth in the second quarter, producing a record number of 401(k) millionaires.

The average 401(k) balance rose 8% from a year ago, 403(b) accounts gained 9%, and IRA balances increased 5% compared to the second quarter of 2024. Driving these gains were a combination of consistent savings behavior and positive stock market performance, even as markets experienced turbulence earlier in the quarter.

Sharon Brovelli, president of Workplace Investing at Fidelity Investments, emphasized the importance of staying patient during volatile times. 

“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,” Brovelli said. “This diligence and focus on long-term retirement goals contributed to this quarter’s retirement balance rebound.”

Confidence in steady saving

Fidelity reported that the average total savings rate in 401(k) accounts, including both employee and employer contributions, stood at 14.2%, close to the firm’s recommended target of 15%. Additionally, retirement account millionaires hit another record high, with 595,000 individuals now holding 401(k) balances above $1 million. 

Notably, only 5.5% of retirement savers made changes to their asset allocation during the quarter, reinforcing a trend of long-term discipline and limited reaction to short-term market swings.

Individual retirement contribution levels also reflected growing investor determination. While the average IRA contribution held steady at just over $2,200, participation from key demographics surged.

Generation X increased contributions by 25% and baby boomers boosted theirs by 37% compared to Q2 last year. Robert Mascialino, president of Wealth at Fidelity, called the commitment encouraging. 

“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.”

Spotlight on higher education employees

In addition to broad retirement savings trends, Fidelity highlighted the progress—and challenges—faced by higher education employees in preparing for retirement. Participation rates are strong at 84%, with an average savings rate of 19.1% and an average account balance of $369,000. 

However, the report identified notable gaps among younger staff and women, pointing to areas where universities and colleges may need to expand education and outreach.

With balances growing, contribution habits improving, and retirement millionaires at record levels, Fidelity’s analysis suggests retirement savers are benefiting from a steady, long-term approach to investing.