Average 401(k) Balances Jump 10.5% in Q2 as Savings Rates Hold at 14.4%
Updated
Updated · Yahoo Finance · Sep 8
Average 401(k) Balances Jump 10.5% in Q2 as Savings Rates Hold at 14.4%
1 articles · Updated · Yahoo Finance · Sep 8
Summary
Average 401(k) balances rose 10.5% in the second quarter, the strongest quarterly gain since late 2020, while 769,000 savers held at least $1 million in their accounts.
Record saving persisted despite household budget pressure: total 401(k) savings rates stayed at 14.4% for a second straight quarter, with workers contributing 9.6% on average and employers 4.8%.
Fidelity said 12.1% of participants increased their contribution rate in Q2, and 81.2% saved enough to capture their full employer match.
Financial strain still showed up in withdrawals and borrowing, with 19.5% of savers carrying a 401(k) loan, up from 19.2%, and hardship withdrawals rising to 3% year over year.
Millennials posted some of the fastest gains, with average 401(k) balances up 14.2% in the quarter and 26.1% from a year earlier, underscoring how market gains are lifting retirement accounts across generations.