Fidelity Investments® Q1 retirement analysis revealed that 401(k) savings rates hit a record high, driven by a milestone employee contribution rate of 9.5 percent, and an employer contribution rate of 4.8 percent — the highest level to date.
Why it matters: This combined savings rate of 14.3 percent is the closest it’s ever been to Fidelity’s suggested savings rate of 15 percent.
- Baby boomers saved 17.2 percent on average, while Generation X and Millennials put away 15.4 percent and 13.5 percent, respectively.
Yes, but: Retirement account balances ended Q1 slightly lower, primarily due to stock market swings.
- The average 401(k) balance was $127,100, down three percent from Q4 2024, while the average IRA balance was $121,983, which represented a three percent drop.
What they’re saying: “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.”
