US retirement account balance trends

In the second quarter of 2026, United States retirement account balances reached record highs. Data from Fidelity Investments indicates that average 401(k) balances rose 13.1% year-over-year to $155,800, while average individual retirement account (IRA) balances increased 10% to $144,523. This growth was driven by strong stock market performance and a steady average savings rate of 14.4%.

The increase in market value resulted in a record number of 401(k) millionaires, with Fidelity reporting that accounts holding at least $1 million rose 19% between the first and second quarters.

Despite these rising balances, economic pressures are impacting how workers interact with their savings. The share of employees with outstanding 401(k) loans rose to 19.5%, and hardship withdrawals increased to 3%. These trends are attributed to persistent inflation and the rising costs of essentials like housing, groceries, utilities, and gasoline. While some financial experts suggest specific savings rules to reach millionaire status through compounding, many middle-income workers report feeling behind on their retirement goals.