BOSTON, September 3, 2026, 12:35 EDT — 401(k) retirement savings accounts have climbed to a record, advancing 10.5%. However, this increase lags behind the S&P 500, which jumped 15.2% over the same period.
- Fidelity reported its average 401(k) balance hit an all-time high of $155,800 as of June 30.
- The quarterly balance increase of 10.5% was lower than the S&P 500’s total return of 15.2% for the same period.
- The average 401(k) contribution rate remained at a record high of 14.4% for the second consecutive quarter.
U.S. retirement account averages climbed to new highs following an equity rally in the second quarter. Fidelity reported a 10.5% increase in its average 401(k) balance, reaching $155,800. This marks the largest quarterly increase since late 2020 Fidelity release.
The S&P 500 delivered a 15.2% gain for the quarter, marking its strongest performance in six years American Century market review. This outpaced the rise in 401(k) balances by 4.7 percentage points.
Growth in balances does not equate to investment returns. Factors such as contributions, withdrawals, participant turnover, and changes in asset allocation also affect the average. Still, the data indicates that retirement accounts benefited from the majority, but not the entirety, of the stock market rally.
Latest reported average balances
Quarter-end dollars per account, Q1 to Q2 2026
Source: Fidelity Q2 analysis and Q1 analysis. Latest data released September 3.
Total 401(k) contributions remained steady, holding at 14.4% for the second straight quarter. On average, employees contributed 9.6% and employers provided 4.8%, according to a Fidelity analysis.
The steadiness enhances the investor signal. The record was driven mainly by market gains instead of an abrupt uptick in payroll deductions. Fidelity said the higher balances were partly due to robust stock performance.
Q2 rebound: market return versus balance growth
Percent change during the three months ended June 30
Sources: Fidelity; American Century. Balance growth includes flows and is not a portfolio return.
Fidelity analyzed data from over 55 million accounts, comprising 25.8 million 401(k) holders and 20.3 million IRA accounts. The 403(b) sample included 9.49 million plan members.
Growth was seen in all account categories. The typical 403(b) balance increased 11.5% to $145,000, while the average IRA rose 10% to $144,523 PLANADVISER.
“Workers continue to prioritize their financial future, saving at record levels,” said Sharon Brovelli, Fidelity’s workplace-investing president. Over 81% received the maximum employer match, while an additional 12.1% increased their contribution rate.
The 401(k) savings engine held near target
Average contribution rates and matching behavior in Q2 2026
9.6% employee + 4.8% employer = 14.4% total, versus a 15% suggested benchmark
Source: Fidelity Q2 2026 retirement analysis.
Younger savers recorded higher growth in balances. Millennials saw a 14.2% increase for the quarter and 26.1% over the past year. Gen Z had the highest rate of Roth 401(k) participation at 21.9%.
The number of millionaire accounts surged as well. Fidelity reported 769,000 401(k) accounts with balances over $1 million, an increase from 654,000. The tally of IRA millionaires climbed to 684,140, up from 571,622 Yahoo Finance.
Pressure stays below average levels. The proportion of savers with outstanding 401(k) loans increased to 19.5% from 19.2% in March. Hardship withdrawals climbed to 3%, up from 2.6% a year ago.
Consistent payroll contributions generate ongoing investment demand for asset managers. The report omits information regarding net fund flows and overall asset allocation. As a result, it is unclear which funds attracted the largest inflows.
Risks are evident. Fidelity presents averages rather than the median result for most savers. A downturn in the market may reduce these gains, and taking loans or making withdrawals may diminish the benefits of compounding.
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