Investment firm Fidelity reported in its first-quarter report for 2025 that 401(k) balances are down 3% on average and IRA accounts are down about 4%.
Sharon Brovelli, Fidelity President of Workplace Investing, said in a release that the slight downturn in balances can be attributed to “market swings.”
Bovelli said the Q1 report showed that despite challenges facing retirement savers, “it’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals.” That is noted in the report, indicating the “401(k) savings rate increased to a record 14.3%.”
Fidelity, the nation’s country’s largest manager of 401(k) plans, reported average account balances dropped to $127,100, despite client savings rates increasing. Average IRA or individual retirement account balances dropped to an average of $121,983.
The continued market uncertainties caused by the trade strategy of President Donald Trump are referenced often by analysts reviewing economic data. The latest National Employment Report issued by ADP on Wednesday showed moderate job gains.
Many investors are waiting for Friday’s payroll data from the non-farm sector to get an update on how the Trump plans are settling.
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