401(k) balances rise for many Americans in 2025.

Fidelity reported average 401(k) balances climbed more than 11% year over year to about $146,000 in Q4 2025, while median balances remain lower and disparities persist.

Fidelity's Q4 2025 retirement analysis shows average 401(k) balances rose more than 11% year over year to roughly $146,000. This marks the third consecutive year of double‑digit growth. The report attributes the gains to steady employee contributions, employer matches, and a market rebound. A separate Northwestern Mutual survey found Americans estimate they need about $1.26 million to retire comfortably. Key facts: - Average 401(k) balances increased over 11% year over year to about $146,000, according to Fidelity's Q4 2025 data. - This is the third straight year of double‑digit growth in average balances. - Median balances are substantially lower than averages; people contributing consistently for 15+ years have median balances near $377,700. - The number of 401(k) accounts holding $1 million or more rose to about 665,000, with many belonging to Generation X. - IRA contributions rose about 25% year over year, and reported savings rates remained stable with many workers contributing near 15% when employer matches are included. - Fidelity's workplace investing president Sharon Brovelli described the behavior as consistent and long‑term focused. Summary: Rising average balances point to stronger retirement cushions for some workers and have particular relevance for homeowners facing ongoing housing costs in retirement. Undetermined at this time.