{"id":45403,"date":"2026-03-07T18:25:01","date_gmt":"2026-03-07T18:25:01","guid":{"rendered":"https:\/\/diyhaven858.wasmer.app\/index.php\/retirement-savers-shook-off-2025-volatility-and-many-became-millionaires\/"},"modified":"2026-03-07T18:25:01","modified_gmt":"2026-03-07T18:25:01","slug":"retirement-savers-shook-off-2025-volatility-and-many-became-millionaires","status":"publish","type":"post","link":"https:\/\/diyhaven858.wasmer.app\/index.php\/retirement-savers-shook-off-2025-volatility-and-many-became-millionaires\/","title":{"rendered":"Retirement savers shook off 2025 volatility \u2014 and many became millionaires"},"content":{"rendered":"
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Last year, volatility roared into retirement accounts repeatedly, sending stocks sliding before bouncing back.<\/p>\n
Retirement savers shook it off \u2014 and many became millionaires.<\/p>\n
At year-end, the average 401(k) balance rose by 11% to $146,100, according to a new report from Fidelity Investments, while the number of investors with $1 million or more in their retirement accounts hit a new high.<\/p>\n
“An important part of any successful retirement strategy is taking a long-term approach to retirement savings and not making changes based on short-term events,” Michael Shamrell, vice president of workplace thought leadership at Fidelity Investments, told Yahoo Finance.<\/p>\n\n
“Despite the market swings and economic uncertainty that workers faced in 2025,” he added, “we continued to see both employees, as well as their employers, make consistent retirement savings contributions, which has helped boost overall retirement savings to record levels.”<\/p>\n
Average annual 401(k) and 403(b) account balances jumped by double digits for the third straight year. The average IRA balance increased 7% over last year.<\/p>\n
The 401(k) data is drawn from Fidelity’s thousands of defined contribution plans at various companies and nonprofits nationwide with more than 40 million participants, as well as 18.9 million IRA accounts.<\/p>\n
These gains reflect the US market’s lofty 2025 performance, when the S&P 500 (^GSPC) rose 16.9 %, the Nasdaq Composite (^IXIC) was up more than 20%, and the small-cap Russell 2000 (^RUT) was up around 13%.<\/p>\n
Read more: <\/em>How much can you contribute to your 401(k) in 2026?<\/em><\/p>\n\n
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<\/div>\n<\/div>Davids' Adventures Photos via Getty Images<\/span><\/figcaption><\/figure>\n
For long-term savers who have been in their 401(k) plan with the same employer for five years straight, the average balance increased 16% from year-end 2024.<\/p>\n
Much of that can be attributed to never-wavering saving habits. The average savings rate for that cohort was 14.2%, on par with 2024. That includes the average employee contribution rate of 9.5% of their gross income, along with the average employer match of 4.7%.<\/p>\n
Nearly 40% of workers bumped up their 401(k) contribution rate at some point in 2025, compared with only 10.6% who reduced it.<\/p>\n
More good news: IRA contributions increased 25% from the prior year, and total contributions were up 23% \u2014 marking a record high for IRA contributions made between the end of September and year-end, according to the data.<\/p>\n
Read more: <\/em>Find the 10 best high-yield savings accounts<\/em><\/p>\n
The flashing finding, though, goes to those scrappy Gen Xers \u2014 the oldest of whom turn 61 this year \u2014 who throttled up their contributions by 25% year over year.<\/p>\n<\/p><\/div>\n