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401(k) savings hit record high despite market volatility, Fidelity report finds
Americans boosted 401(k) and IRA savings in 2026 despite market volatility, with Roth contributions and retirement savings rates reaching record highs.
A new retirement analysis data by Fidelity’s Q1 2026 Investments shows that many Americans are saving more money for retirement instead of panicking about market ups and downs. The experienced savers are not moving their money into cash or stopping investments when markets become unstable. Instead, they are continuing to invest for the long term.
Sharon Brovelli, President of Workplace Investing at Fidelity, said retirement savers started 2026 strongly with record-high savings rates and contributions, as cited by Kiplinger.
Gap between worry and real actions
Fidelity found a difference between how people feel about the economy and how they are actually managing their retirement savings. Even though many Americans are worried about economic uncertainty, retirement savings contributions reached record levels during the first quarter of 2026. The combined employee and employer contribution rate for 401(k) plans reached 14.4%, the highest level ever recorded.
Savings rates in 403(b) retirement plans reached 12% during the first quarter. IRA contributions increased by 29% compared with the same period a year earlier. Roth accounts were the most popular choice and received 67% of all IRA contributions, as stated by Kiplinger.
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Market drops did not stop savers
Market volatility during the first quarter caused retirement account balances to fall slightly. The average IRA balance fell 4% from the previous quarter to $131,380. The average 401(k) balance also dropped 4% from the previous quarter and stood at $141,000.
Average IRA balances are 46% higher than they were ten years ago. Average 401(k) balances are 61% higher than ten years ago. This time, many investors reacted differently and continued saving. About 18% of retirement plan participants actually increased their savings rates during the quarter.
Only 5.7% of investors changed their asset allocations, which was lower than the 6.0% level seen a year earlier. This shows that most investors kept their investment strategies unchanged despite market swings. Fidelity said maintaining a steady investment strategy has historically produced better long-term results, as noted by Kiplinger.
Growing interest in Roth accounts
One of the biggest trends in the report was the strong move toward Roth retirement accounts. Roth accounts made up 67% of all IRA contributions in the first quarter. Roth conversion transactions jumped 41% compared with the previous year.
Auto features helped increase savings
Fidelity said automatic savings features played a major role in increasing contribution rates. Many workplace retirement plans automatically raise employee contribution rates by 1% each year. However, not all savings growth came from automation.
The 29% increase in IRA contributions and 41% rise in Roth conversions required investors to make active decisions themselves. Fidelity believes these actions show that many investors have become more financially knowledgeable. In this case, investors used those opportunities to build future tax-free income and reduce required minimum distributions (RMDs).
Focus on long-term goals
This disciplined approach allowed investors to focus on long-term financial planning rather than temporary market volatility. The report concludes that many American retirement savers are becoming smarter, more disciplined, and more focused on long-term financial security than in previous decades, as stated by Kiplinger.
