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Retirement savers are socking away more cash than ever

The savings rate is almost 15% of income, according to Fidelity Investments

Updated:

June 6, 2025

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By:
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Mark Huffman
Reporter

Mark Huffman has covered consumer issues since 2004, with a special focus on protecting and empowering older adults. A former news correspondent for the Associated Press Radio Network, Westwood One, and ConsumerAffairs, Mark brings decades of journalistic experience to RetirementLiving.com. He is passionate about giving consumers a voice and helping them make informed decisions. Mark has also created educational content, including Senior Scam Alert, a video resource designed to help seniors recognize and avoid fraud. He holds a B.A. from the University of Kentucky and lives with his family in Richmond, Virginia.

Key Insights

  • Average 401(k), 403(b), and IRA balances dipped in Q1 2025 due to market volatility.
  • Retirement savers held firm, with 401(k) savings rates hitting a record 14.3%.
  • Fidelity Investments highlights the importance of long-term savings strategies amid uncertainty.

Amid the turbulence of early 2025 market conditions, retirement savers have largely held their ground, according to Fidelity Investments’ latest Q1 2025 retirement analysis. While average balances in 401(k), 403(b), and IRA accounts dipped slightly due to market volatility, Fidelity reports encouraging signs of resilience among savers.

The total savings rate for 401(k) accounts rose to an all-time high of 14.3%, while 403(b) plans maintained a solid 11.8% rate. These figures reflect consistent contributions from both employers and employees, underscoring a strong commitment to long-term financial goals, even as market volatility tested investor confidence.

Challenges

“Although the first quarter of 2025 posed challenges for retirement savers, it’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals,” said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “This approach will help individuals weather any type of market turmoil and stay on track to reach their retirement goals.”

Fidelity, the top IRA provider in the U.S., analyzed over 50 million retirement accounts for its quarterly review. The findings suggest that despite economic headwinds, most investors stuck with their established contribution strategies and avoided rash reallocations.

The report is part of Fidelity’s broader financial wellness initiative, with deeper analysis and retirement planning tools available through its Building Financial Futures publication and Workplace Insights hub. These resources aim to help individuals better navigate economic uncertainty while staying focused on long-term outcomes.

As the market continues to fluctuate, the message for those nearing retirement is clear: disciplined, steady saving remains one of the most effective paths to a secure retirement.

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