Retirement Savers Aren't Backing Down Despite Market Swings

If your retirement account took a small hit this past quarter, you're not alone — but you may not need to worry. Market ups and downs have led to a dip in retirement balances for many Americans, but overall savings habits remain strong.

Fidelity's latest quarterly retirement report — based on data from over 50 million retirement accounts — shows that average balances in 401(k), IRA, and 403(b) accounts declined slightly in Q1 2025. For example, the average 401(k) balance dropped to around $122,000, down from about $127,000 at the end of last year. The same trend showed up in IRAs and 403(b)s as well. The cause? Mostly short-term market volatility.

The encouraging news is that people are still saving at solid rates. In fact, the average 401(k) savings rate hit a new high of 14.3%, and 403(b) savers held steady at 11.8%. That tells us that, despite the market noise, most people are staying focused on their long-term goals and continuing to contribute to their retirement plans.

This kind of consistency matters. Retirement planning is a long game, and these dips are a normal part of the process. Even with this quarter's decline, account balances remain significantly higher than they were five years ago — a reminder that riding out the market's ups and downs can pay off over time.

So what's the takeaway? Yes, balances were down a bit this quarter, but the fundamentals are strong. Savers are still putting money away, and they're doing so at record levels. If you're sticking to your plan, making regular contributions, and staying invested, you're likely in good shape.

In short, the market may wobble — but retirement savers aren't panicking. They're playing the long game, and that's often the smartest move.

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