Overview
- Fidelity’s plan data show average retirement balances fell about 4% in the first quarter of 2026 and the share of workers with outstanding 401(k) loans and hardship withdrawals rose, a sign some households tapped accounts to cover short-term costs.
- Surveys this spring found people are setting higher retirement goals and losing confidence: Northwestern Mutual says the average goal rose to $1.46 million and nearly half of adults said they do not expect to be financially prepared for retirement.
- Account averages mask the gap for most savers: Empower’s age-by-age data show big average balances for older workers but medians are far lower, meaning a small share of large accounts inflate the headline numbers.
- Policy changes in 2026 matter but are limited: SECURE 2.0 raised catch-up contribution limits for older workers and officials are pushing broader plan access, while a presidential remark that $465,000 makes someone “rich” drew expert pushback as insufficient for most retirements.
- Advisors point to concrete steps that can improve outcomes—using new catch-ups, delaying Social Security to raise monthly benefits, employer defaults like auto-escalation, and careful withdrawal plans—but they warn these moves may not close large shortfalls and many workers could still face working longer or tighter budgets.