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<\/a><\/a>\nWhile average account balances dipped slightly quarter-over-quarter during a period of market volatility, the longer-term trend is more optimistic: the average 401(k) balance increased 11% from Q1 2025 while the average 403(b) balance increased 13% and the average IRA balance was up 7% from Q1 2025.<\/p>
\nThe first quarter also brought positive retirement savings behaviors among both participants and employers. Nearly one in five (18%) participants increased their savings rate \u2013 in large part due to auto increases \u2013 and only 5.7% made a change to their asset allocation (down from 6% a year ago). The average quarterly employer contribution amount reached a record level of $2,080 in Q1, surpassing the previous high of $2,020 a year ago.<\/p>
\n\u201cRetirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they\u2019re taking with retirement preparedness,\u201c said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. \u201cWhile it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions \u2013 an approach that will ultimately strengthen outcomes as retirement nears.\u201d<\/p>
\nIRA contributions reached record highs in Q1, driven by strong Roth demand, with Roth IRAs representing 67% of contributions. Roth conversion transactions increased 41% year-over-year, highlighting the continued acceleration of Roth adoption.<\/p>
\n\u201cWe\u2019re encouraged to see investors creating thoughtful, long-term strategies to build their wealth,\u201c says Bob Mascialino, president of Wealth at Fidelity Investments. \u201dChoices like increasing contributions to Roth accounts reflect a focus on flexibility, tax efficiency, and confidence in planning for the future \u2013 principles that are essential to navigating financial complexity and building lasting financial security.\u201d<\/p>
\nAs one of the country\u2019s leading workplace benefits providers1<\/sup> and America\u2019s No. 1 IRA provider2<\/sup>, Fidelity\u2019s latest analysis of savings behaviors and account balances for more than 54 million IRA3<\/sup>, 401(k)4<\/sup>, and 403(b)5<\/sup> retirement accounts can be found here<\/a>.<\/p> \nEquity compensation as an investing tool<\/b><\/p> \nThis quarter\u2019s retirement analysis also spotlights data uncovered by Fidelity\u2019s recent 2026 Stock Plan Participant Research<\/a> which highlights the importance of equity compensation as an employee benefit. Fidelity\u2019s latest data shows that \u2013 for many employees \u2013 equity compensation is not only a gateway to investing, but also a source of financial security and a reason to stay with their employer. In particular, 43% of participants say they became first-time investors through their company\u2019s stock plan and 73% plan to rely on their equity compensation proceed for long-term investing. Additionally, 56% of employees say equity compensation as a benefit makes them more likely to stay with their employer, and 65% cite it as an important consideration in accepting a job.<\/p> \nAdditional details and insight on retirement trends and data can be found in Fidelity\u2019s latest quarterly edition of \u201cBuilding Financial Futures<\/a>\u201d as well as the Workplace Insights<\/a> hub, which explores original research, data-driven insights, and the latest industry trends.<\/p> \nAbout Fidelity Investments\n \nKeep in mind that investing involves risk, including the risk of loss. The value of your investment will fluctuate over time, and you may gain or lose money.<\/b><\/p> \nPast performance is no guarantee of future results.<\/b><\/p> \nViews expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.<\/b><\/p> \nFidelity Brokerage Services LLC, Member NYSE, SIPC<\/a> \nFidelity Distributors Company LLC,\n \nNational Financial Services LLC, Member NYSE, SIPC<\/a>,\n \n1261440.1.0\n \n____________________<\/p><\/td><\/tr>\n \n1<\/sup> Based on PLANSPONSOR Magazine's \u201c2025 Recordkeeping Survey,\u201d June 2025 and \u201c2025 Defined Benefit Administration Survey,\u201d September 2025.<\/p><\/td><\/tr>\n \n2<\/sup> Based on Cerulli Associates\u2019 U.S. Retirement End-Investor 2024: Top-10 IRA Providers by AUA, 4Q 2021\u20134Q 2023.<\/p><\/td><\/tr>\n \n3<\/sup> Fidelity business analysis of 19.6 million IRA accounts as of March 31, 2026. Considers only active participants with a balance.<\/p><\/td><\/tr>\n \n4<\/sup> Fidelity Investments Q1 2026 401(k) data based on 26,800 corporate defined contribution plans and 25.6 million participants as of March 31, 2026. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelity\u2019s own employees.<\/p><\/td><\/tr>\n \n5<\/sup> Fidelity Investments Q1 2026 403(b) data based on 10,660 Tax-exempt plans and 9.45 million plan participants as of March 31, 2026. Considers average balance across all active plans for 7.4 million unique individuals employed in tax-exempt market.<\/p><\/td><\/tr>\n<\/table> \n\u00a0<\/p> \nFollow us on Twitter @FidelityNews<\/a><\/i><\/b> \nFidelity Media Relations\n\n
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