El Paso Investors See 11% Growth in 401(k) Balances Amid Market Volatility

Despite recent stock market fluctuations, the average 401(k) balance in 2025 rose by 11% to $146,100, according to Fidelity Investments. This increase marks the third consecutive year of double-digit growth, driven by strong market performance and consistent savings habits among participants. Notably, 665,000 accounts surpassed the $1 million mark, with Gen Xers holding the majority of these high balances. However, the median balance remains significantly lower at $34,400, highlighting disparities in retirement savings. Women have also seen improvements, with their average balance increasing by 22% over five years, although their median balance is still just $29,400. This data underscores the importance of proactive retirement planning, especially for younger generations.

Key Details: • Average 401(k) balance increased to $146,100 in 2025. • 665,000 accounts now hold over $1 million, a significant rise from 2024. • Gen Xers account for 60.3% of million-dollar 401(k) accounts. • Women’s average 401(k) balance rose to $119,500, with 40% increasing their savings rate.