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Fidelity: Retirement Balances Fall 4% in Q1 as Contributions Hit Record Highs

Market losses lowered average account values and millionaire counts, signaling short-term volatility that tests savers’ long-term progress.

Overview

  • Fidelity’s Q1 2026 report, released Thursday, showed average 401(k) balances fell about 4% to $141,000 and average IRA balances dropped about 4% to $131,400.
  • The number of 401(k)-created millionaires slid to 645,000 and IRA millionaires to 571,622 after market weakness reduced portfolio values.
  • Total 401(k) savings rates reached a record combined 14.4% of pay as nearly one in five participants increased contributions through automatic escalation.
  • Roth activity accelerated with Roths making up 67% of IRA contributions and Roth conversions rising roughly 41% year over year, while employer contributions set a quarterly record at about $2,080 per participant.
  • Hardship withdrawals and plan loans edged higher and a minority of savers hold fully concentrated stock positions, which raises near-term risk even though average balances are up year over year and long-term saving behavior remains strong.