Fidelity Investments reported record retirement account balances for the second quarter of 2026, with the average IRA balance reaching $144,523, up 10% from the prior quarter and 10% year-over-year. The average 401(k) balance also hit a new high of $155,800, a 10% quarterly gain and a 13% annual increase.
The data, released on September 20, 2026, reflects the performance of more than 55 million retirement accounts administered by Fidelity, offering a broad snapshot of American household saving behavior.
Contribution Growth Accelerates
IRA contributions rose 36% year-over-year, significantly outpacing the 7.1% increase in the annual contribution limit, which now stands at $7,500. This surge indicates that savers are actively increasing their retirement savings, not merely benefiting from market tailwinds.
The average 401(k) savings rate held steady at a record 14.4% of pay, consisting of 9.6% employee contributions and 4.8% employer matches. This rate approaches Fidelity's recommended 15% guideline, with employer contributions supplying one-third of the total.
Market Gains Drive Balances
Fidelity attributed the 10.5% quarterly increase in 401(k) balances primarily to strong stock market returns. However, the firm noted that contribution rates remained firm, suggesting that savers are maintaining their discipline even as asset values climb.
Over longer horizons, 403(b) accounts have shown the strongest growth, with average balances more than doubling over the past decade, compared to a 75% increase for 401(k)s. The average 403(b) balance now stands at $145,000.
Broad-Based Record Balances
Fidelity's analysis covers 20.3 million IRA accounts, 25.8 million 401(k) participants across 27,300 corporate plans, and 9.49 million 403(b) participants. This large sample size helps reduce noise, though the averages may be skewed by older, larger accounts.
"The combination of record account balances, strong savings behaviors and effective plan design tell an encouraging story," said Sharon Brovelli, President of Fidelity.
Industry Implications
Rising retirement assets are a positive sign for public recordkeepers and asset managers, including Charles Schwab (SCHW), T. Rowe Price (TROW), and Voya Financial (VOYA). Recent analyst calls reflect this optimism:
- Charles Schwab: Barclays' Benjamin Budish maintains a Buy rating with a $125 price target (September 16, 2026).
- T. Rowe Price: TD Cowen's Bill Katz rates it Hold with a $110 target (August 31, 2026).
- Voya Financial: Morgan Stanley's Bob Huang rates it Overweight with a $105 target (August 24, 2026).
Risks and Outlook
While the data is encouraging, a potential market reversal could erode balances and fee pools, and economic headwinds could weaken contribution rates. Fidelity's next quarterly analysis will reveal whether the 14.4% savings rate held through September, and whether savers continue to drive growth.
