Retirement savers beefed up their portfolios in the third quarter

Fidelity Investments’ latest Q3 2025 retirement analysis shows that Americans’ retirement nest eggs continue to grow, with average 401(k), IRA, and 403(b) balances all reaching record levels during the quarter. 

The surge reflects a combination of steady savings habits and supportive stock market performance, even as uncertainty around the broader economy persists.

According to the report, the average 401(k) balance rose 5% from its previous high in Q2, marking the sixth quarter-over-quarter increase in the past eight quarters—an upward trend stretching back to late 2023. Fidelity noted that both 401(k) and 403(b) contributors maintained consistent savings rates throughout the third quarter, signaling that workers are staying focused on long-term goals despite economic concerns.

Disciplined behavior

Sharon Brovelli, president of Workplace Investing at Fidelity, said the data underscores disciplined behavior among savers. 

“Americans are continuing to exhibit impactful savings behaviors such as staying the course and focusing on long-term goals, which clearly is having a positive effect on retirement savings,” she said. “To see balances and saving behaviors increase across all savings vehicles is encouraging, especially as savers continue to navigate an uncertain economic environment.”

One of the standout trends in this quarter’s findings is the growing embrace of Roth accounts, vehicles that offer tax-free withdrawals in retirement. Fidelity reports that 20% of Gen Z 401(k) participants now contribute to Roth 401(k)s, a significantly higher share than older generations.

The trend is even more pronounced in IRAs. Gen Z investors directed 95% of their IRA contributions to Roth IRAs rather than traditional accounts, demonstrating a strong focus on long-term tax efficiency.

“Retirement is about taking a long-term view, and the growing interest in Roth products shows that investors recognize their potential for tax advantages and long-term growth,” said Robert Mascialino, president of Wealth at Fidelity Investments. “By creating a plan and saving consistently, investors of all ages are positioning themselves for a financially secure retirement.”

Auto Portability gains traction

Fidelity’s analysis also highlights the rapid expansion of Auto Portability, an automated service that rolls small retirement balances from one employer’s plan to another, helping workers avoid cashing out when changing jobs. As a founding member of the Portability Services Network, Fidelity has helped advance the adoption of the service since its launch in October 2022.

To date, more than 9,200 Fidelity 401(k) plans have implemented Auto Portability, preserving about $24 million in retirement savings that might otherwise have been lost or withdrawn prematurely.

Fidelity’s quarterly analysis draws on savings behaviors from over 52 million retirement accounts across IRAs, 401(k)s, and 403(b)s. The full breakdown of trends, along with additional research and industry insights, is available in the latest edition of Building Financial Futures and through Fidelity’s Workplace Insights hub.