US retirement account balances reach record highs amid rising loan usage

American retirement accounts reached record highs in the second quarter of 2026. According to data from Fidelity Investments, the average 401(k) balance rose 13.1% year-over-year to $155,800, while average IRA balances increased 10% to $144,523. These gains were driven by strong market performance and a steady average savings rate of 14.4%.

However, financial pressures are prompting more workers to access their savings. The percentage of employees with outstanding 401(k) loans rose to 19.5%, and hardship withdrawals increased to 3%.

In light of these economic challenges, investor Kevin O'Leary suggests a 15% savings rule. He argues that an individual earning $68,000 annually who invests 15% of their income into the market could reach millionaire status by age 65 through the power of compounding, though many workers in middle-income brackets report feeling behind on their retirement goals.