401(k) savers are setting records. How to catch up if you're behind.

Primary Journalistic Dispatch & Direct Reporting

401(k) savers are setting records. How to catch up if you're behind. Ivana Pino · Senior Writer Tue, September 8, 2026 at 9:35 AM PDT 4 min read Despite financial pressures, workers remain committed to their retirement goals, with many boosting their contribution rates - and watching their savings grow.

According to Fidelity Investments' latest quarterly analysis, 769,000 retirement savers have a million dollars or more in their 401(k). Average 401(k) balances grew 10.5% in the second quarter, marking their strongest quarterly growth since the fourth quarter of 2020, thanks partly to stock market gains.

The total average savings rate also held at record levels for the second consecutive quarter, remaining at 14.4% for 401(k) savers and 12% for 403(b) participants.

In-Depth Developments & Factual Context

At the same time, Fidelity data shows more savers tapped their accounts for cash to cover expenses: 19.5% of retirement savers had an outstanding 401(k) loan in the second quarter, up from 19.2% at the end of the first quarter. The share of workers who took a hardship withdrawal increased year over year to 3%.

The latest inflation data shows continued pressure on household budgets, with costs rising across the board, from gas to groceries. The Consumer Price Index showed some prices decreasing month over month in July. However, the index was still 3.4% higher year over year.

Still, employees have been contributing an average of 9.6% of their pay to their 401(k) accounts, a record high, while employers contributed an average 4.8%.

Industry Impact & Strategic Analysis

In the second quarter, 12.1% of 401(k) participants increased their contribution rate, and 81.2% contributed enough to receive their employer's full matching contribution.

IRA savers increased contributions by 36% from the second quarter of last year.

Here's a look at where the average retirement savings balances stand:

Forward Outlook & Market Perspective

Millennials' average 401(k) balances increased 14.2% during the quarter and 26.1% year over year, according to the latest data, and millennials and Gen X employees were the highest contributors to traditional IRA contributions, both averaging approximately $6,000.

If your account balance doesn't align with the average account balance, that doesn't necessarily mean you're behind - it's common for retirement account balances to vary across generations.

Separate figures from Fidelity found that the average 401(k) and IRA balances for each generation range from $8,000 to $286,700.

It's also important to consider how your retirement savings goals, external sources of income, timeline, and other factors will affect your retirement account target and your progress toward it at this stage.

"Someone earning $75,000 with a pension, modest lifestyle, and plans to work until 70 likely needs a very different amount than someone earning $300,000, spending $200,000 a year, and wanting to retire at 55," said Brian Seymour, CFP® and founder of Prosperitage Wealth.

Read more: 6 money moves to make in your 20s to help you get ahead

Reporting synthesized and verified under Nexvoro.tech editorial guidelines. Full primary records referenced via Yahoo Finance.