The Average 401(k) Balance Hits Record High in the Second Quarter — Is Your Nest Egg Keeping Up?

The best quarter for the U.S. stock market in six years powered the average 401(k) balance to a 10.5% gain and a record high of $155,800 in the second quarter of 2026, according to Fidelity Investments' latest retirement analysis.

But it wasn't just a white-hot stock market (the S&P 500 stock index posted a total return of 15.2% in the second quarter) that caused 401(k) balances to swell. Plan participants' personal savings behaviors added to the bullish tone. The average 401(k) savings rate (which includes both employee and employer contributions), for example, held steady at a record 14.4% — just shy of Fidelity's recommended 15% savings rate.

More than eight in 10 workers (81.2%) also heeded financial planners' advice to "not leave any money on the table" and contributed enough to receive the full matching contribution offered by their employer. More than one in 10 plan participants (12.1%) also increased their contribution rates in the April through June quarter, up from 11.6% a year earlier.

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"Workers continue to prioritize their financial future, saving at record levels and taking advantage of valuable benefits such as employer matching contributions," said Sharon Brovelli, president of workplace investing at Fidelity.

You can't control or predict market behavior, but you can decide how much you save, says David Schneider, president of Schneider Wealth Strategies. "Your savings rate is probably the single-most important determinant (in building) long-term wealth," said Schneider.

Saving for retirement remains a source of angst for many Americans in a world where traditional pensions are fading into obscurity, inflation is eating into budgets, Social Security is in poor financial shape, and financial market volatility is a fact of life.

So, are your 401(k) balance and total savings rate keeping up with the Joneses?

Fidelity's Q2 2026 Retirement Analysis is out

Seeing how your nest egg stacks up against the average 401(k) balance for other people your age is a good way to gauge if you're on track for retirement.

Average retirement savings totals don't take into account your specific circumstances, of course. Nor do they factor in key variables such as salary, investment return projections, how many years you have before retirement, longevity estimates or how much money you’ll need in retirement. Balance averages can also be skewed by super savers with high balances or young workers with extremely low balances.

"This information tells us what the average American has saved," said Kelly LaVigne, head of annuity advanced markets at Allianz Life Insurance Company of North America. "But personal finances are, well, personal. Your financial picture may look much different."

Average 401(k) balance by age and generation

Powered by a massive rally in semiconductor stocks benefiting from the artificial intelligence (AI) buildout and plunging oil prices and inflation expectations due to a brief de-escalation of tensions between the U.S. and Iran, the average 401(k) balance rose by 10.5% to $155,800, according to Fidelity Investments’ Q2 2026 Retirement Analysis. 401(K) balances are up 13.1% from the second quarter of 2025.

Here's the average 401(k) balance by generation and age as of June 30, 2026, according to Fidelity's report, which is based on the 25.8 million 401(k) accounts it manages.

Table Data Source: Fidelity Investments.

Long-term buy-and-hold approach is winning strategy

In a sign that continuous, steady savings can add up over time, the average balance for women who have been in their 401(k) for five straight years surpassed $250,000 in the second quarter, reaching $273,400. Similarly, the average balance for young Gen Z workers who have been in the same 401(k) employer plan for at least five years reached $77,200.

"Strong savings habits continued to support retirement progress," said Brovelli.

The adoption of Roth 401(k)s also continues to rise. Nearly one in five (19.3%) of Fidelity plan participants now contribute to a Roth 401(k), up from 17.1% a year ago. The main perk of Roth 401(k)s, funded with after-tax dollars and now offered by virtually all (97%) of Fidelity plans, is that withdrawals in retirement are tax-free.

A key benefit of a Roth 401(k) is that the contribution limits are much higher than a Roth IRA, says Zjamahl Fain, a private wealth advisor at U.S. Bank. For 2026, the primary contribution limit for a Roth 401(k) (not including catch-up contributions) is $24,500, versus just $7,500 for a Roth IRA. Roth 401(k)s also have another perk: plan participants can make contributions no matter how large their income.

"Roth 401(k)s allow much higher contributions and have no income limits, whereas Roth IRAs have lower limits and strictly restrict high earners," said Fain.

However, in what could be a sign of financial strain, the Fidelity report also shows that Gen X has the highest percentage (25.7%) of outstanding 401(k) loans. On average, 19.5% of all 401(k) plan participants had an outstanding 401(k) loan at the end of the second quarter.

Financial advisors warn that borrowing from a workplace retirement account should be a last resort.

"If your credit is maxed out, your credit score is low, and there is no emergency fund, a 401(k) loan, while not ideal, is often the only accessible source of cash," said Schneider. "And it requires no underwriting, credit checks or income verification."

How much you need to save for retirement, by age

Let's look at average 401(k) balances by age band, which shows how much account holders have saved during each decade of their lives.

Compare that with Fidelity's recommended retirement savings amount by age, measured as the multiples of salary a worker should save in a given decade of life.

Here's the average 401(k) balance by age as of June 30, 2026, according to Fidelity.

If your 401(k) balance is below the averages listed above, don’t despair.

“Your reaction shouldn't be giving up, or saying, ‘Oh no, I’m so far behind, I'll never make it up,' " said Lisa Featherngill, national director of wealth planning at Comerica Wealth Management. “Use it as a catalyst to make needed changes to boost your savings."

Consider using savings guideposts to better determine how much you need to save, gauge whether you're on track and decide whether you need to tweak your savings strategy.

Fidelity, for example, recommends savings milestones that focus on two data points specific to you: your age and your salary.

Using Fidelity's guidelines, you should aim to save one times your salary by age 30, three times your pay by age 40, six times by 50, eight times by 60, and 10 times by age 67.

If you're 50 now and earn $100,000, you should have $600,000 socked away. If your salary rises to $125,000 as you near retirement, you'll need $1.25 million saved by the time you're 67, which is when most Americans reach full retirement age and are eligible to receive full Social Security benefits.

Savings guideposts help you know where you are on your savings journey and if you're headed in the right direction or need to tweak your plan.

Act, don't panic if you're behind

The good news? 401(k) savings balances are far larger for long-term savers, Fidelity data show. What may look like a low balance today can grow over time through steady saving, portfolio gains, and compounding.

For example, the average balance for savers who've been investing in the same 401(k) continuously for 15 years was $668,900 and $501,800 for those saving for 10 straight years, Fidelity's second-quarter 2026 data show.

Retirement savers should build a diversified portfolio of stocks, bonds, cash and other assets so they don't suffer large losses from, say, a 100% stock portfolio or from owning too large a stake in a single company when markets turn volatile.

It's also important for investors to keep their emotions in check and not bail out of the market due to fear when volatility strikes. Only 5.5% of Fidelity 401(k) plan participants changed their asset mix in the second quarter of 2026, according to Fidelity.

Personal finance experts say staying invested through all market conditions is the key to success.

Having a retirement portfolio with a diversified mix of stocks, bonds, and liquid assets like cash can reduce risk, keep losses manageable, and help investors stay invested during a market downturn.

Here are ways to play catch-up if you're behind on your savings.

Save more. Fidelity recommends saving 15% of your salary, including your company's matching contribution. To reach that goal, boost your 401(k) savings when you get a raise or bonus, or commit to saving 1% more each year until you reach your savings target. Signing up for automatic savings increases is a smart move. In fact, nearly one in three (29.0%) Fidelity 401(k) plans in the second quarter of 2026 now come with employer-set auto-escalation features, up from 19.9% in the second quarter of 2021, according to the Fidelity study.

Don’t miss your employer's match. Eight in 10 (79.1%) of Fidelity 401(k) plan participants received a company match in the second quarter of 2026. The key is to contribute enough to earn the full match, so you don't leave money on the table. In the second quarter, most workers (81.2%) contributed enough to their 401(k) to earn their employer's full matching contribution.

"This can help accelerate your retirement savings," said Sarah Darr, head of financial planning at U.S. Bank Wealth Management.

The most popular match on Fidelity's platform is based on a 5% employee contribution rate. Typically, the employer contribution rate matches 100% of the first 3% of employee contributions, and 50% of the next 2%. If you make $100,000 and contribute 5%, or $5,000, to your 401(k), your employer will chip in another $4,000 with the match. Fidelity says more than half of its 401(k) plans now offer this popular company match.

Take advantage of catch-up provisions. For 2026, the 401(k) contribution limit for workers under age 50 is $24,500. The catch-up contribution limit for workers age 50 and older is $8,000 in 2026. So, the 2026 401(k) contribution limit for those over 50 is $32,500.

If you are aged 60 to 63, however, you can save even more. Starting in 2025 and continuing in 2026, the SECURE 2.0 Act allows savers aged 60-63 to boost their catch-up contributions to $11,250, according to the IRS. This super catch-up provision should help workers near retirement make up for leaner years when they might not have contributed enough.

More than one in 10 (12.4%) of plan participants made catch-up contributions in the second quarter.

Invest more aggressively. Assets with growth potential, such as stocks, will give you a better chance of building a larger nest egg. A target-date fund that adjusts your mix of stocks and bonds based on your age and retirement date is one way to achieve an appropriate level of stock exposure.

In the second quarter of 2026, two-thirds (63.8%) of Fidelity 401(k) participants had all their money invested in a target-date fund, according to Fidelity.

Digging into 401(k) balances by generation

Want more details on your generation's 401(k) balances? Read:

The Average Boomer 401(k) Balance Is Not an 'Easy Rider' Trip

The Average Gen X 401(k) Balance Kind of Bites

The Average Millennial 401(k) Balance Is Not 'Superbad'

Get the full story: What you're worth

Want to see how more of your retirement portfolio compares with peers? Read:

The Average Net Worth by Age

Average Retirement Savings by Age

The Average IRA Balance by Age

Average Social Security Check by Age

Average 401(k) Fund Fees and Expenses: Are You Overpaying?

Next Steps for Building Retirement Security

• How to Turn a $1 Million Nest Egg Into a Lifetime Income Machine
• The Retirement Rule of 240 Paychecks in Retirement
• Estate Planning for Millionaires
• You Can Be a 401(k) Millionaire. Here's How