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American workers' retirement nest eggs are on a strong run, with three consecutive years of double-digit annual gains.

That's according to the latest retirement analysis from financial firm Fidelity. The average balance reached $146,400 at the end of 2025, up 11% from a year earlier. The quarterly analysis, which tracks savings behavior and account balances across more than 53 million IRA, 401(k) and 403(b) accounts, shows retirement savers continuing to make steady progress despite economic uncertainty.

Over the long term, balances have climbed significantly. The average 401(k) balance is now 20% higher than it was five years ago and 66% above 2015 levels, gains driven by a combination of healthy market performance and steady contributions from workers. Even as average balances rise, savers are facing headwinds. Markets have experienced bouts of volatility so far in 2026 amid geopolitical uncertainty. Plus, stubbornly high prices on a swath of necessities — including groceries, car insurance, utilities and health care — are pinching budgets and making it harder to prioritize saving for a life stage that's potentially decades away.

“Despite uniquely challenging times, retirement savers remain committed to their financial futures by staying the course with their retirement savings,” Sharon Brovelli, president of workplace investing at Fidelity, said in a news release. “The consistency so many Americans show in maintaining responsible savings behaviors and keeping a long-term perspective will serve them well in retirement.”

How does your 401(k) balance compare to your peers?

By the end of 2025, the average 401(k) balance was $146,400 — but retirement savings look very different depending on your age. Here’s how the different generations compare, according to Fidelity:

• Gen Z (born 1997-2012): The average 401(k) balance is $13,500 with a total savings rate of 10.9%, including both employee contributions and employer matches.
• Millennials (born 1981-1996): The average 401(k) balance is $67,300 with a total savings rate of 13.3%.
• Gen X (born 1965-1980): The average 401(k) balance is $103,952 with a total savings rate of 15.2%.
• Baby boomers (1946-1964): The average 401(k) balance is $249,300 with a total savings rate of 16.9%.

Overall, contribution habits have remained relatively steady among workers with access to retirement plans. The average total 401(k) savings rate at the end of 2025 held at 14.2% for the third consecutive quarter, just shy of Fidelity’s recommended 15% benchmark for a comfortable retirement.

Younger workers are playing a growing role in that momentum. More than 13% of Generation Z savers increased their contribution rate in the final months of 2025. Among Gen Z women specifically, nearly half (46.6%) boosted their 401(k) savings rate last year. At the same time, Gen X — the oldest of whom are nearing retirement age — maintained total savings rates above the recommended 15%, a promising sign for a generation in its peak earning years, according to Fidelity’s report.

What about workers without access to a 401(k)?

While balances are rising for workers with access to employer-sponsored retirement plans, the picture is less rosy for Americans without a workplace retirement option. Roughly 54 million private-sector workers lack workplace retirement benefits, meaning they miss out on employer matches and the automatic payroll deductions that make it easier to build wealth in the stock market, according to Economic Innovation Group, a Washington-based think tank. Although these workers can save through IRAs on their own, those accounts tend to see much lower participation rates. According to Fidelity's report, the average IRA balance was $137,095 at the end of 2025, up 7% from a year earlier — highlighting that independent retirement savings generally lags behind 401(k) accounts.

The shortfall in workplace retirement coverage has drawn renewed attention from policymakers after President Donald Trump proposed creating federally administered retirement accounts modeled after the government’s Thrift Savings Plan to help workers without employer-sponsored plans. A central feature of the proposal is an annual government match of up to $1,000 per year aimed at enticing people to save — similar to the employer match offered in many 401(k) plans.

For workers without access to a 401(k), starting an IRA can still help build savings, though lower contribution limits and the absence of an employer-match generally mean balances accumulate more slowly over time.

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