Despite ongoing market volatility, Americans continued to put money into 401(k) and 403(b) funds during the first quarter of 2026. Total savings in both investment vehicles reached record levels in the period -- 14.4% for 401(k)s and 12% for 403(b)s.
"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."
Although 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 the first quarter of 2025; the average 403(b) balance increased 13%; and the average IRA balance was up 7%.
The first quarter also brought positive retirement savings behaviors among both participants and employers. Nearly one in five participants increased their savings rate, in large part due to automatic increases, while only 5.7% made a change to their asset allocation. The average quarterly employer contribution amount reached a record level of $2,080 in the first quarter, surpassing the previous high of $2,020 a year ago.
IRA contributions reached record highs in the first quarter, with Roth IRAs representing two-thirds 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."
The first-quarter retirement analysis highlights the importance of equity compensation as an employee benefit. 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. Nearly three-quarters 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 two-thirds cite it as an important consideration in accepting a job.
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