If clients are asking about their retirement accounts, here's some good news you can share with them.
According to Fidelity's Q2 2025 retirement analysis — which has data from over 50 million retirement accounts — the average 401(k), 403(b), and IRA balances hit record highs.
The average 401(k) balance increased from $127,100 in Q1, to $137,800 in Q2 for an increase of 8%. IRA's also increased 8% quarter-over-quarter climbing from $121,983, to $131,366. Last but not least, 403(b) saw the highest increase at 9%, going from $115,424 in Q1, to $125,400 in Q2.
The cause? A strong performance on Wall Street in which indexes such as the S&P 500 have soared more than 30% off the April lows. Year to date, the S&P 500 is up 10% and the rally could keep going if the Federal Reserve goes ahead with multiple rate cuts by the end of the year.
The other key piece — and just as important — is the fact that most savers simply stayed the course, didn't flinch, and were consistent in their contributions, despite the market sell-off in Q1. That quiet discipline combined with a strong market rebound fueled the record-breaking balances.
For financial advisors, this is a moment worth highlighting with clients — especially those who might be tempted to time the market or make drastic changes during periods of uncertainty. These results are a real-world example of why long-term consistency matters more than short-term strategy.
Fidelity also notes that Baby Boomers and Gen Xers led the way in IRA contributions, continuing to prioritize retirement in a big way. At the same time, there are still some concerning gaps, particularly among younger savers and women — especially those in sectors like higher education. This can be a great opportunity for advisors to step in with encouragement, education, and personalized strategies to help close those gaps.
And when it comes to 401(k)-created millionaires, the number of those reached an all-time high with 595,000 individuals in Q2, thanks to the help of the massive market rebound, combined with steady contributions.
In the end, higher balances are always good news — but they're also a reminder of what steady, long-term investing can do. The market may have helped this quarter, but the real progress came from those who stuck with the plan and that continue to play the long game.
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