Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
Americans’ 401(k) Savings Rate Just Hit a Record High. See How You Compare
By Adam Hardy MONEY RESEARCH COLLECTIVE
Despite saving a bigger portion of their incomes, workers saw their account balances dip over the first few months of 2025.
Workers in the U.S. are socking away a record share of their earnings for retirement, new data reveals.
The average 401(k) savings rate has reached an all-time high of 14.3%, according to a retirement trends report released Wednesday by the financial firm Fidelity. The report, which analyzed retirement account balances over the first three months of 2025, found that both worker contributions and employer-matching contributions have reached the highest levels to date.
“It’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals,” Sharon Brovelli, president of workplace investing at Fidelity, said in a news release. “This approach will help individuals weather any type of market turmoil and stay on track.”
Financial advisors often recommend workers save 15% of their annual earnings to fund a comfortable retirement, and 14.3% is the closest workers have gotten to that recommendation, on average.
Despite saving a bigger portion of their incomes, workers saw their account balances dip over the first few months of 2025. By the end of March, average 401(k) balances had ticked down to $127,100, marking a $4,600 decrease from December.
Those falling 401(k) balances were largely due to stock market jitters around President Donald Trump’s sweeping tariff announcement in April, which ultimately sent markets plummeting. The tariff-inspired market turmoil wiped away approximately 25,000 so-called 401(k) millionaires, bringing the total number of investors with at least $1 million in their 401(k)s to 512,000.
The S&P 500 index, for instance, fell as much as 15% from the start of the year. Since then, those losses have been reversed, and the index is now up slightly by 1.7%.
That suggests 401(k) balances have likely recovered, too (though the Fidelity report only goes through March).
Fidelity’s analysis is based on more than 24.4 million retirement accounts. According to the Labor Department, 70% of the private workforce (about 95 million workers) has access to a 401(k) or similar retirement-savings plan.
401(k) savings: How do you compare?
As of March, the average 401(k) balance was $127,100. But retirement savings trends vary greatly by age.
Here’s a look at the typical 401(k) balance and savings rate for members of each generation:
- Gen Z (born 1997-2012) has saved $13,900, with a savings rate of 11.2%
- Millennials (born 1981-1996) have saved $66,800, with a 13.5% savings rate
- Gen X (born 1965-1980) has saved $187,400 with a savings rate of 15.4%
- Baby boomers (born 1946-1964) have saved $239,600 with a savings rate of 17.2%
While Gen Z workers — predictably — had the lowest account balances, they were the most likely group to have increased their contribution rates to start the year. They were also the least likely to have taken out a 401(k) loan.
Gen X workers were the most likely to have an outstanding 401(k) loan, with 1 in 4 Gen Xers tapping their retirement accounts in the first few months of the year.
Top Precious Metals Company on Inc. 5000
Inc. 5000 Top Gold Company with A+ BBB Rating
- Up to $25K in free silver on qualifying purchases
- Same-day IRA Processing - Start Instantly
- No Buy-Back Fees - 100% Satisfaction Guarantee: 7 Day Refund
- Free FREEDOM Package: Setup, Insured Shipping, and Secure Storage
5-star rating with the BBB & Trustpilot
Up to $20,000 in Free Metals on Qualifying Orders*
-
Free Gold IRA Setup With Expert Guidance
- 100% Low Price Guarantee
- No-Fee Buy-Back & Commission-Free Programs
- Free Shipping & Insurance on All Orders
Up to $10,000 in gold credit
Up to $15K in Free Silver + Zero Account Fees on Qualifying Purchase*
- Endorsed By Robert Kiyosaki, Renowned Finance Expert
- Fast, Free, Insured Shipping on Gold & Silver Purchases
- 100% No-Cost IRA Rollover With Buyback Commitment
- Two Decades of Expertise With A+ BBB Rating
Qualify for up to 10% in FREE silver
Special Offer - Get Up to 10% in Bonus Silver OR Gold
- Highest Industry Buyback Guarantee
- Winners of "Best Customer Service" and "Gold IRA Education" plus only 9X INC5000 Award Recipient
- Over 8,000 5-STAR Reviews from Google, TrustPilot, Consumer Affairs, Retirement Living and the Better Business Bureau
- Endorsed by Sean Hannity, Tom Selleck, Dennis Quaid, and Chuck Norris
More from Money:
This 401(k) Change Could Help 3 Million More Americans Afford Retirement
You Might Be Overestimating How Much Money You Need to Save for Retirement
It Might Be Time to Ditch These Two Retirement ‘Rules’
Adam Hardy is Money's lead data journalist. He writes news and feature stories aimed at helping everyday people manage their finances. He joined Money full-time in 2021 but has covered personal finance and economic topics since 2018. Previously, he worked for Forbes Advisor, The Penny Hoarder and Creative Loafing. In addition to those outlets, Adam’s work has been featured in a variety of local, national and international publications, including the Asia Times, Business Insider, Las Vegas Review-Journal, Yahoo! Finance, Nasdaq and several others. Adam graduated with a bachelor’s degree from the University of South Florida, where he studied magazine journalism and sociology. As a first-generation college graduate from a low-income, single-parent household, Adam understands firsthand the financial barriers that plague low-income Americans. His reporting aims to illuminate these issues. Since joining Money, Adam has already written over 300 articles, including a cover story on financial surveillance, a profile of Director Rohit Chopra of the Consumer Financial Protection Bureau and an investigation into flexible spending accounts, which found that workers forfeit billions of dollars annually through the workplace plans. He has also led data analysis on some of Money’s marquee rankings, including Best Places to Live, Best Places to Travel and Best Hospitals. He regularly contributes data reporting for Best Colleges, Best Banks and other lists as well. Adam also holds a multimedia storytelling certificate from Poynter’s News University and a data journalism certificate from the Investigative Reporters and Editors (IRE) at the University of Missouri. In 2017, he received an English teaching certification from the University of Cambridge, which he utilized during his time in Seoul, South Korea. There, he taught students of all ages, from 5 to 65, and worked with North Korean refugees who were resettling in the area. Now, Adam lives in Saint Petersburg, Florida, with his pup Bambi. He is a card-carrying shuffleboard club member.