Overview

• Average 401(k) balances declined 3% to $127,100 in the first quarter of 2025, while average IRA balances dropped 4% to $121,983.
• Combined employee and employer contributions pushed the total 401(k) savings rate to a record 14.3%, nearing Fidelity’s 15% recommendation.
• Fidelity attributes the slump in account values primarily to market volatility triggered by ongoing trade war measures.
• Since March 31, the S&P 500 has rallied more than 6%, underscoring gains available to investors who stayed the course.
• Financial advisers underscore that maintaining contributions during downturns is vital for long-term retirement success.