Fidelity: 401(k) balances were down 23% in 2022, but now rebounding

Although the average 401(k) balance rose in the fourth quarter of last year, balances ended 2022 down 23% from 2021, says a new report from Fidelity Investments. In Q4 2021, the average 401(k) retirement account balance was $130,700 and in Q4 2022, it was $103,900, after rebounding from $97,200 in Q3, according to Fidelity.

However, despite record inflation last year and a possible recession on the horizon, U.S. investors remain committed to their retirement objectives, according to Fidelity. “Given all the stresses in the world today, such as natural disasters and geopolitical events, Americans continue to confront challenging times in our economy,” said Kevin Barry, president of workplace investing at Fidelity Investments.

“Fortunately, the data shows that retirement savers understand the importance of saving for the long term, despite market shifts,” he said. “We are encouraged to see people look past the current volatility and continue to make smart choices for their future.”