Americans’ 401(k) balances have reached a record high, with baby boomers saving the most and millennials seeing growth in their retirement accounts, according to new Fidelity data. The average balance across Fidelity accounts rose to $155,800 in the second quarter of 2026, an increase of 10.5 percent from the previous quarter, which is the biggest quarterly gain since late 2020, according to Fidelity’s Building Financial Futures analysis. Newsweek has contacted Fidelity for comment on the findings via email outside of regular working hours and is awaiting a response.
The increase follows market fluctuations earlier this year, with Fidelity crediting strong investment performance and continued contributions for the improvement in balances. It also comes as rising living costs continue to squeeze household budgets which can often make retirement planning take the back bench: Bureau of Labor Statistics figures released last week show consumer prices were 3.4 percent higher in August than a year earlier. Greg Black, founder and senior wealth adviser at Tencap, said the gains were encouraging, although higher balances alone provide an incomplete picture of how prepared Americans are for their retirements.
"The numbers are encouraging, but I’d be cautious around interpreting record balances as a dramatic improvement in overall retirement preparedness," Black told Newsweek. A 401(k) is a workplace retirement plan that allows employees to save part of their wages with tax advantages. Employers can also contribute, including by matching money workers put into their accounts.
Baby boomers, many of whom are already retired or are close to retirement, held the largest average 401(k) balance, at $283,200, followed by Generation X at $240,700, according to Fidelity’s report. They also contributed the highest share of their earnings. Boomers put an average of 12.2 percent of their own pay into their accounts, compared with 10.6 percent for Gen X.
Those figures exclude employer contributions. "Older workers generally have higher incomes, fewer competing financial priorities, and more urgency as retirement approaches, so it makes sense that they contribute a larger percentage of their pay," Black said. For millennials, the latest quarter brought a substantial increase in the money accumulated.
Their average balance rose 14.3 percent to $94,300, leaving it about 26 percent higher than a year earlier. Gen Z workers, the youngest generation of savers, held an average of $20,800. Millennials contributed 9 percent of their pay, while Gen Z contributed 7.6 percent, again excluding employer contributions.
Extract — continue reading at the source.
