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Retirement savings rates hit record highs in the first quarter

Study shows workers were undeterred by market uncertainty

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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.

Updated:

key insights:

  • Fidelity reported record-high retirement savings rates for both 401(k) and 403(b) plans in the first quarter of 2026 despite ongoing market volatility.
  • The average combined 401(k) savings rate reached 14.4%, approaching Fidelity’s recommended 15% benchmark, while IRA contributions surged 29% year over year.
  • Although account balances declined modestly during the quarter, they remained significantly higher than a year earlier, reflecting continued long-term retirement savings growth.

Despite a volatile economic and market environment, Americans continued to prioritize retirement savings during the first quarter of 2026, pushing 401(k) and 403(b) contribution rates to record levels.

Fidelity Investments’ quarterly retirement analysis, which examined more than 54 million IRA, 401(k), and 403(b) accounts, found that the average total 401(k) savings rate — including both employee and employer contributions — rose to a record 14.4% during the quarter. The average 403(b) savings rate also reached a record high of 12%. Both figures moved closer to Fidelity’s recommended retirement savings target of 15%. 

The report suggests that many workers remained focused on long-term financial goals even as markets experienced turbulence. Nearly 18% of retirement plan participants increased their savings rates during the quarter, aided in part by automatic contribution escalation features offered by employers. 

Meanwhile, only 5.7% of participants changed their investment allocations, a slight decline from a year earlier, indicating that most savers stayed the course despite uncertainty.

Strong start to the year

“Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they’re taking with retirement preparedness,” Sharon Brovelli, president of Workplace Investing at Fidelity Investments, said in a statement. 

Individual retirement accounts also saw strong activity. Fidelity reported that IRA contributions climbed 29% from the same period a year ago, while the number of account holders making contributions increased 28%, both record highs. 

Despite the strong savings trends, market volatility weighed on account balances during the quarter. The average 401(k) balance fell 4% from the fourth quarter of 2025 to $141,000, while the average 403(b) balance declined 3% to $130,000. Average IRA balances dropped 4% to $131,380.

Double-digit increase over 2025

However, the longer-term picture remained positive. Compared with the first quarter of 2025, average 401(k) balances increased 11%, average 403(b) balances rose 13%, and average IRA balances gained 7%. 

Employers also increased support for retirement savings. The average quarterly employer contribution reached a record $2,080, surpassing the previous high of $2,020 recorded a year earlier. Fidelity also found growing interest in Roth retirement savings options, with participation in Roth 401(k) plans reaching an all-time high of 18.8% during the quarter. 

The report highlights a continuing trend of workers maintaining disciplined retirement saving habits even as inflation concerns, geopolitical tensions, and market fluctuations create short-term uncertainty. Fidelity’s data suggests that automatic enrollment and automatic contribution increases continue to play a significant role in helping employees boost savings and remain invested for the long term.