401(k) participants ended 2025 on a steady note. November wasn’t a blockbuster month for the markets — the S&P 500 inched up just 0.25% and international stocks actually slipped — but retirement savers didn’t flinch. They kept contributing, stayed invested and largely avoided knee-jerk reactions, according to the Alight Solutions 401(k) Index.

For HR professionals and plan sponsors, this is a reassuring sign. It means that employees are engaging with their retirement plans in a thoughtful, disciplined manner, even when headlines are mixed.

Contributions stayed strong even during the holiday season

Let’s be honest: November isn’t always the easiest month to stay focused on long-term financial goals. Between holiday shopping, travel plans and year-end expenses, retirement savings can easily take a back seat. But 2025? Not so much.

The average employee contribution rate was 8.8%. When you factor in employer contributions, the total savings rate was even higher. This is a testament to the power of automatic features and consistent messaging.

If you’re an HR leader, this is a great time to celebrate employees staying strong in their commitment to saving for retirement. A quick note in your new year newsletter or a shout-out during a town hall can go a long way in reinforcing these positive behaviors.

Trading activity: quiet confidence

Trading was light in November, with daily net activity averaging just 0.011% of balances. That’s in line with recent months and shows that participants aren’t trying to time the market or chase performance.

Most trading days saw net transfers into fixed income funds. Bonds and stable value funds were the top destinations, capturing 47% and 20% of inflows, respectively. Company stock and U.S. equities led the outflows. It seems participants are modestly rebalancing, even if the markets aren’t exactly booming.

Asset allocation: a gentle nudge toward growth

Equity allocations remained at 73%, but contributions to equities rose a bit, accounting for 70% of total contributions.

Target date funds continued to lead the pack, receiving half of all new contributions. These funds remain a go-to choice for many employees, offering a “set it and forget it” approach that adjusts over time. If your plan doesn’t already offer a strong lineup of target date options, it might be worth a review heading into the new year.

Related: 6 non-annuity tools to modernize your clients’ retirement income strategy

What HR can do right now

So, what does all this mean for you and your team?

  • Celebrate the wins. Employees are doing the right things like contributing consistently and staying invested. A little recognition can reinforce those habits.
  • Keep the education flowing. Even though trading is low, the shift toward fixed income shows that participants are paying attention. Make sure they have access to resources that explain the “why” behind their choices.
  • Review your plan design. With target date funds leading the way, it’s a good time to ensure your offerings are competitive and aligned with participant needs. For example, some people might find target date funds too simplistic since they rely on only one variable, the time until retirement. These people might appreciate something more tailored like a managed account or online advice.
  • Look ahead to 2026. Consider enhancements like auto-escalation, financial wellness tools or personalized communications. The momentum is there and now’s the time to build on it.

Wrapping up the year

November’s data might not have been flashy, but it was full of good news. Participants are exhibiting resilience, discipline and a commitment to their futures. That’s something worth celebrating.

Whether it’s through plan design, education or simple encouragement, HR teams play a vital role in helping employees stay on track. And based on what we’ve seen, they’re listening.

Here’s to a strong finish to 2025 and an even better start to 2026.

Rob Austin is the head of thought leadership at Alight Solutions. He brings data and insights to clients to help them improve the short- and long-term financial wellbeing of their workers. Throughout his career, he has been involved in developing and publishing reports on benefits plan design and participant behavior.

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