According to Fidelity Investments®’ latest Q1 2026 retirement analysis, both 401(k) and 403(b) total savings rates reached record levels in the first quarter, despite ongoing market volatility. The total savings rate (which includes both employer and employee contributions) for 401(k) savers reached 14.4% – nearing Fidelity’s suggested combined savings rate of 15% – while the total savings rate for 403(b) participants reached 12%. IRA contributions also reached top results in Q1, including record-high contributions (up 29% year-over-year) and a record-high number of Fidelity IRA account holders contributing to accounts (up 28% year-over-year).
While average account balances dipped slightly quarter-over-quarter during a period of market volatility, the longer-term trend is more optimistic: the average 401(k) balance increased 11% from Q1 2025 while the average 403(b) balance increased 13% and the average IRA balance was up 7% from Q1 2025.
The first quarter also brought positive retirement savings behaviors among both participants and employers. Nearly one in five (18%) participants increased their savings rate – in large part due to auto increases – and only 5.7% made a change to their asset allocation (down from 6% a year ago). The average quarterly employer contribution amount reached a record level of $2,080 in Q1, surpassing the previous high of $2,020 a year ago.
“Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they’re taking with retirement preparedness,“ said Sharon Brovelli, president of Workplace Investing at Fidelity Investments. “While it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions – an approach that will ultimately strengthen outcomes as retirement nears.”
IRA contributions reached record highs in Q1, driven by strong Roth demand, with Roth IRAs representing 67% of contributions. Roth conversion transactions increased 41% year-over-year, highlighting the continued acceleration of Roth adoption.
“We’re encouraged to see investors creating thoughtful, long-term strategies to build their wealth,“ says Bob Mascialino, president of Wealth at Fidelity Investments. ”Choices like increasing contributions to Roth accounts reflect a focus on flexibility, tax efficiency, and confidence in planning for the future – principles that are essential to navigating financial complexity and building lasting financial security.”
As one of the country’s leading workplace benefits providers1 and America’s No. 1 IRA provider2, Fidelity’s latest analysis of savings behaviors and account balances for more than 54 million IRA3, 401(k)4, and 403(b)5 retirement accounts can be found here.
Equity compensation as an investing tool
This quarter’s retirement analysis also spotlights data uncovered by Fidelity’s recent 2026 Stock Plan Participant Research which highlights the importance of equity compensation as an employee benefit. Fidelity’s latest data shows that – for many employees – equity compensation is not only a gateway to investing, but also a source of financial security and a reason to stay with their employer. In particular, 43% of participants say they became first-time investors through their company’s stock plan and 73% plan to rely on their equity compensation proceed for long-term investing. Additionally, 56% of employees say equity compensation as a benefit makes them more likely to stay with their employer, and 65% cite it as an important consideration in accepting a job.
Additional details and insight on retirement trends and data can be found in Fidelity’s latest quarterly edition of “Building Financial Futures” as well as the Workplace Insights hub, which explores original research, data-driven insights, and the latest industry trends.
About Fidelity Investments
Fidelity’s goal is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $17.9 trillion, including managed assets of $7.0 trillion as of March 31, 2026, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 79 years, Fidelity employs more than 80,000 associates across North America, Europe, and Asia-Pacific. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
Keep in mind that investing involves risk, including the risk of loss. The value of your investment will fluctuate over time, and you may gain or lose money.
Past performance is no guarantee of future results.
Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.
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Fidelity Distributors Company LLC,
900 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
245 Summer Street, Boston, MA 02110
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1 Based on PLANSPONSOR Magazine’s “2025 Recordkeeping Survey,” June 2025 and “2025 Defined Benefit Administration Survey,” September 2025. |
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2 Based on Cerulli Associates’ U.S. Retirement End-Investor 2024: Top-10 IRA Providers by AUA, 4Q 2021–4Q 2023. |
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3 Fidelity business analysis of 19.6 million IRA accounts as of March 31, 2026. Considers only active participants with a balance. |
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4 Fidelity Investments Q1 2026 401(k) data based on 26,800 corporate defined contribution plans and 25.6 million participants as of March 31, 2026. These figures include the advisor-sold market but exclude the tax-exempt market. Excluded from the behavioral statistics are nonqualified defined contribution plans and plans for Fidelity’s own employees. |
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5 Fidelity Investments Q1 2026 403(b) data based on 10,660 Tax-exempt plans and 9.45 million plan participants as of March 31, 2026. Considers average balance across all active plans for 7.4 million unique individuals employed in tax-exempt market. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260528194109/en/
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