Fidelity Reports Third Straight Year of Double-Digit 401(k) Balance Growth
Event summary
- Average 401(k) balances increased by 11% YoY, marking the third consecutive year of double-digit growth.
- IRA contributions surged by 23% YoY, setting a record high for Q4 contributions.
- Gen Z participants saw a 13% increase in 401(k) contribution rates, with nearly 4-in-10 women increasing their savings rate.
- Fidelity reported $18.0 trillion in assets under administration as of December 31, 2025.
The big picture
Fidelity's sustained double-digit growth in retirement account balances reflects broader trends of increased financial awareness and market gains. As the leading IRA provider and a top workplace benefits provider, Fidelity's data underscores the growing emphasis on long-term savings strategies across generations. The company's scale—with $18.0 trillion in assets under administration—positions it as a key player in shaping retirement planning dynamics.
What we're watching
- Sustainability of Growth
- Whether Fidelity can maintain this growth trajectory amid potential market volatility.
- Regulatory Developments
- How the introduction of Trump Accounts will impact younger generations' retirement savings strategies.
- Generational Shifts
- The pace at which Gen Z and Millennials adopt Roth 401(k)s and target date funds.