Fidelity says average 401(k) balances surged 11% to a record $155K in Q2 — why some savers are falling behind

If you have a workplace retirement savings account, then you might be happy to hear that — despite market fluctuations, fears of an AI bubble and an uncertain economy — account balances have reached record highs.

That’s according to Fidelity’s Q2 2026 retirement analysis, which shows that retirement savings benefitted from a strong stock market after a slight drop in returns in the first quarter of this year, with 401(k) and 403(b) plans rebounding to new levels.

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But are you seeing the same results in your account? If not, here’s why and what you can do about it.

Retirement account balances on the rise

About one in three workers are feeling positive about their personal finances — and that’s, in part, due to a strong stock market that’s giving their retirement savings a nice boost. Overall retirement account averages for 401(k) balances stood at $155,800, up nearly 11% from Q1 and 403(b) balances stood at $145,000, up 12%, according to Fidelity. Individual retirement accounts also grew 10% over the period.

The findings come as more than half of workers surveyed (55%) say that they are extremely or very concerned about the economy — due to factors such as the rising cost of living, the geopolitical environment and job security, Fidelity said.

But what if your account isn’t keeping up? There are a few reasons why some savers might be seeing more impressive gains than others — and there’s more to it than economic conditions.

“Economic conditions and plan design may have an impact on workers’ retirement savings, but
savings behavior also plays a role in helping workers progress toward their retirement goals,” Fidelity said.

For example, Fidelity found that total average savings rates held at 14.4% for 401(k) savers in Q2 and 12% for 403(b) savers. It also noted that 81% of 401(k) participants were saving enough from their paychecks to receive their employer’s full matching contribution.

And, while IRA holders don’t get the benefit of employer matching, Fidelity’s data showed they increased their contributions by 36% compared to the previous year.

Bottomline, it comes as no surprise that your return rate depends somewhat on how much you can invest.

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How to boost your savings

If your savings rate isn’t keeping up, there are a few things you can do. First, see if your plan design and investments are meeting your needs. If your employer offers matching contributions, try to meet the full match — otherwise you’re essentially leaving money on the table.

Of course, not all Americans have a 401(k) and matches aren’t always an option.

If you don’t have an employer-sponsored retirement plan, you may want to consult a financial advisor to build a portfolio (or revamp a current one) that will meet your financial goals. If you’re not seeing the returns you’d like to in your IRA or brokerage account, chances are you may need a more aggressive portfolio.

This may make sense if you’re young, since you have more time for your portfolio to recover in the event of a downturn, like the global pandemic or The Great Recession. If you’re nearing retirement, you’ll want to adjust your portfolio accordingly, perhaps moving money into different buckets (more conservative for early retirement, less conservative for later in retirement).

Save more when you can

Another way to boost your savings is simply to save more. That’s sometimes easier said than done, especially if you’re feeling stretched financially — though even small amounts can make a difference.

As your income increases, consider increasing your savings rate, too. Many workplace retirement plans allow you to increase your yearly contribution automatically by 1%, assuming you will get a modest wage increase at work.

The real benefit from saving more comes from compounding interest over time. You can also put any one-time payments — a bonus at work, a tax return, an inheritance — into your IRA (if you haven’t reached your limit for the year), brokerage account or emergency savings fund. The latter works to prevent you from pulling from your retirement accounts if you run into any hardship.

Regardless of how you’re saving for retirement, it’s a good idea to revisit your strategy on a regular basis (say, once a year) and whenever you go through a major life change, like getting married, having a kid or getting divorced.

Fidelity says average 401(k) balances surged 11% to a record $155K in Q2 — why some savers are falling behind

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