Fidelity says average 401(k) balances surged 11% to a record $155K in Q2 — why some savers are falling behind

Recent Fidelity analysis reveals that average 401(k) balances surged 11% to a record $155,800 in Q2 2026, according to their retirement research. This growth in retirement savings is attributed to a strong stock market, despite market fluctuations, concerns about an AI bubble, and an uncertain economy. However, some individuals may still be falling behind in their retirement savings.

The report indicates that while economic conditions and plan design influence workers' retirement savings, personal savings behavior also plays a crucial role. For example, 81% of 401(k) participants saved enough from their paychecks to receive their employer's full matching contribution. Additionally, IRA holders increased their contributions by 36% compared to the previous year.

If your account balance isn't matching the record highs, there are several ways to improve your savings rate. First, review your plan design and investment choices to ensure they align with your needs. If your employer offers matching contributions, take full advantage of them. If you don't have access to a 401(k) or employer match, consult a financial advisor to create a tailored investment strategy that fits your financial goals.

For those relying on IRAs or brokerage accounts, consider adopting a more aggressive investment approach if you're young and have a longer time horizon for portfolio recovery. Conversely, as retirement approaches, shift towards more conservative investments to protect your savings.

Lastly, increasing your overall savings rate can have a significant impact on your retirement balance. Even small increases can lead to substantial growth over time due to compounding interest. Regularly review your retirement strategy and make adjustments as needed, especially when milestones like marriage, childbirth, or divorce occur.