Insta_photos | Istock | Getty Images
Retirement account balances, which sank at the start of 2025 amid wild market swings, hit record highs in the third quarter, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.
The average 401(k) balance jumped 9% from a year ago to $144,400, an all-time high, Fidelity found.
The average individual retirement account balance also rose 7% year over year to $137,902.
Fidelity’s report showed increased interest in Roth 401(k)s and IRAs, particularly among younger savers.
Like a traditional 401(k), Roth 401(k)s let you contribute up to $24,500, which is the new, higher limit for 2026. But a key difference is that contributions to a Roth 401(k) are taxed upfront so withdrawals in retirement are tax-free.
Roth 401(k) plans are similar to better-known Roth IRAs although the contribution limits vary. With a Roth IRA, savers under the age of 50 can make after-tax contributions up to $7,500 a year, as of 2026, and then take tax-free withdrawals in retirement.
“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,” Robert Mascialino, president of wealth at Fidelity Investments, said in a statement.
While other research points to retirement saving shortfalls across generations, Fidelity’s “numbers tell a different story,” said Mike Shamrell, Fidelity’s vice president of thought leadership. “We’re seeing a lot of positive behaviors among younger workers, especially Gen Z.”
Number of 401(k), IRA millionaires hit all-time highs
The gains in account balances also helped boost the number of 401(k) millionaires to a fresh high.
The number of 401(k) accounts with a balance of $1 million or more jumped to 654,000 as of Sept. 30, up 10% from the second quarter, according to Fidelity.
The number of IRA-created millionaires also increased by 11.5% from the previous quarter to a record 559,181.
Positive savings behaviors were key to better outcomes, Shamrell said.
The majority of retirement savers continued to make contributions, even during periods of market turbulence. Although there have been concerns about the economy, “the good news is, as of now, it has not turned into any sort of pullback on their retirement savings efforts,” Shamrell said.
The average 401(k) contribution rate, including employer and employee contributions, held steady at 14.2%, Fidelity found, just shy of their suggested savings rate of 15%.
A great stretch for the major indexes also helped.
U.S. markets came under pressure after the White House first announced country-specific tariffs on April 2, causing some of the worst trading days for the S&P 500 since the early days of the Covid pandemic.
However, markets rebounded in the second and third quarter. Through Sept. 30, the Dow Jones Industrial Average was 9% for the year, the S&P 500 was higher by 14% and the Nasdaq Composite was up 17%.