Record Savings Rates Drive DC Balances to New Highs in Q2

After a slight drop in the first quarter of 2026, the average 401(k) and 403(b) account balances rebounded to record levels in Q2, according to Fidelity’s “Q2 2026 Retirement Analysis” report, released Thursday.

Last quarter, the average 401(k) account balance reached $155,800, a 10.5% increase from Q1’s $141,000 average, as well as the largest quarterly jump on record since it grew 10.8% in Q4 2020, Fidelity reported. The average 403(b) balance grew last quarter to $145,000, an increase of 11.5% from Q1.

The average total retirement plan saving rate remained at record levels for the second consecutive quarter in Q2, holding at 14.44% for 401(k) participants and 12% for 403(b) participants. The 401(k) rate was driven by strong market performance, as well as record-high employee contribution rate of 9.6% combined with an average employer contribution of 4.8%, according to Mike Shamrell, Fidelity’s vice president of workplace thought leadership.

“The combination of record account balances, strong savings behaviors and effective plan design tell an encouraging story about how Americans are approaching retirement,” said Sharon Brovelli, Fidelity’s president of workplace investing, in a statement. “Workers continue to prioritize their financial future, saving at record levels and taking advantage of valuable benefits such as employer matching contributions.”

In Q2, 12.1% of 401(k) participants increased their contribution rate, while 81.2% saved enough to receive their employer’s full matching contribution. Individual retirement account participants increased their contributions by 42% from Q2 2025.

Millennials continued to post the strongest gains among all generations last quarter, with average 401(k) balances increasing by 14.2% from Q1 and 26.1% year-over-year. Millennials and Generation Z participants were also the most likely participant cohorts to invest in Roth 401(k) accounts, with participation rates at 20.1% and 21.9%, respectively.

The average IRA balance increased to $144,523 last quarter, a 10% increase from Q1, which was consistent with Q1 2025. Female IRA investors reached an average balance of $130,231, up 12% from one year ago. Seventy-two percent of female investors directed their IRA contributions to Roth accounts, up by 3.4% since Q2 2025.

Fidelity’s analysis was based on 20.3 million IRA accounts; 27,300 401(k) plans with 25.8 million participants; and 10,644 403(b) plans with 9.49 million participants for which it served as recordkeeper, as of June 30.