Uncertainty looms over investments as the stock market reacts to global events. But, according to Fidelity Investments' analysis of nearly 25 million accounts, the average 401(k) balance grew by 11% in 2025, reaching $146,100. This is the third consecutive year of double-digit percentage gains, thanks to both market performance and consistent savings habits. The S&P 500 ended the year up 16.39%, while the Nasdaq rose more than 20%. However, the average savings rate by participants was 14.2%, including an average employee contribution of 9.5% and employer match of 4.7%. Despite this, the average balance of $146,000 is above the median balance of $34,400. Looking at accounts with participants saving for at least 15 years, the median balance is $377,700. At the top end, 665,000 accounts ended the year with balances of $1 million or more, up from 537,000 in 2024. Among these high-balance accounts, participants had been saving for an average of 25 years. However, Gen Xers, who are next in line to retire, have a median 401(k) account balance of just $67,100. Women's 401(k) balances have also increased, with an average balance of $119,500 over the past five years, but their median balance last year was $29,400. The good news is that many women are saving more, with nearly 40% increasing their savings rate last year.
