Average 401(k) balance rose 10.5% in a quarter — Fidelity
The average balance in 401(k) retirement accounts rose by 10.5% from March to June, the largest quarterly increase since 2020. The growth was supported by a strong stock market. According to Fidelity, participants in its plans aged 30 to 39 had accumulated an average of $75,200, while those aged 40 to 49 had accumulated $156,800, CNBC reports.
Fidelity also recorded a historically high contribution rate: including employer contributions, 401(k) holders direct an average of 14.4% of their salaries to these accounts. This is slightly below Fidelity's recommended level of 15%. More than eight in 10 participants contributed enough to receive the full employer match.
Savings benchmarks
Fidelity recommends having retirement savings equal to annual income by age 30 and three times annual income by age 40. At the same time, these benchmarks cover not only a 401(k) account but also other retirement savings tools. According to the company's calculations, they should help workers accumulate an amount equal to 10 years of income by age 67.
More current news is available on the UA.News Telegram channel Telegram.
Certified financial planner and Tenet Wealth Partners co-founder Kevan Melchiorre advises investing at least 15% of income for retirement across all investment accounts, including employer contributions to a 401(k). Adam Vega, managing partner at Avance Private Wealth Management, also suggests taking net worth into account: the value of housing, investments and savings minus debts. In his view, by age 40 this figure should approach two to three years of income.
An opportunity to catch up
According to Melchiorre, workers in their 40s can still increase their retirement savings, as many of them have more than two decades remaining until retirement. In 2026, the contribution limit for a 401(k) is $24,500, while the combined limit for traditional and Roth IRAs is $7,500.
CNBC provides a hypothetical calculation assuming a 7% annual return: a person who invests $250 per month from age 22 could accumulate about $953,680 by age 67. If the same amount is invested starting at age 40, savings by age 67 would total about $240,672. To reach approximately $954,000 under the same assumption, a 40-year-old investor would need to invest about $990 per month.
