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401(k) Balances Slip 3% in Q1 2025 as Millionaires Decline and Savers Boost Contributions

Fidelity attributes the downturn to tariff-led volatility that also prompted savers to increase their 401(k) savings rate to a record 14.3%.

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Overview

  • Average 401(k) balances fell 3% in the first quarter of 2025 to $127,100.
  • The number of 401(k)-created millionaires dropped 4.6% to 512,000 since the end of 2024.
  • Average IRA balances declined 4% to $121,983 and 403(b) accounts dipped 2% to $115,424 quarter-on-quarter.
  • Fidelity cited tariff-driven market swings and economic uncertainty, which drove the S&P 500 down more than 4% from the fourth quarter of 2024.
  • In response to volatility, 22% of 401(k) participants adjusted contribution rates, nearly 30% shifted into conservative assets and overall savings rates rose to a record 14.3%.