Retirement account balances in the United States have reached new record levels in the third quarter of 2025, driven largely by a stronger stock market, according to a recent analysis by Fidelity. Even as economic uncertainty looms, savers broadly maintained their contribution rates, underscoring the ongoing commitment to retirement planning despite the unpredictable environment.
Fidelity’s report highlights an encouraging trend: retirement savings vehicles from 401(k) plans to individual retirement accounts (IRAs) continue to grow in asset size. The average 401(k) balance surged to $134,128, while IRAs hold the largest share of retirement assets overall. This increase reflects how the market rebound is bolstering people’s retirement readiness, at least in terms of account balances. Younger savers, in particular, are showing a growing interest in Roth-type accounts, drawn by their potential tax advantages over the long term.
Despite market gains, retirement planning remains more complex than ever. The average American now believes they will need about $1.26 million to retire comfortably, though many recognize that inflation, healthcare costs, and social security uncertainty make this target a moving one. More than half of Americans are worried about outliving their savings, a concern that grows with age and retirement proximity. Still, the steady contributions observed in Fidelity’s study suggest that many continue to save diligently.
The data also reflects behavioral patterns observed by economists: retirement savings is one of the few aspects of personal finance where commitment and discipline tend to increase, even when other economic conditions are less certain. This has likely contributed to the year-over-year increase in total assets held in retirement accounts. However, it’s worth noting that just over half of U.S. households currently have retirement savings accounts, with significant disparities related to income, education, and race. This means a substantial portion of the population remains vulnerable to economic shocks without a financial cushion for retirement.
Age plays a clear role in savings behavior. For example, median balances rise steadily with age, with those in their sixties typically holding the highest average balances. But many younger workers also are increasing their contributions, encouraged by tax incentives and employer matches. This push into Roth accounts among younger generations indicates a shift toward strategies designed to optimize tax efficiency in retirement years.
While the analysis shows positive trends in asset growth and consistent saving behavior, there is also a reminder that retirement readiness is a personal and evolving goal. Economic volatility often prompts reflection and recalibration. Savers must balance hope for continued market growth against the risk of disruptions, and ever-shifting financial landscape factors.
Ultimately, these findings suggest that despite an economy characterized by fluctuations and concerns, retirement savers generally remain committed to their goals, building stronger financial foundations for their futures. This commitment is crucial given ongoing questions about social security’s future and rising living costs.Â
