Thu, 28 May 2026 | retirement
Despite continued market volatility, Americans are showing remarkable discipline when it comes to retirement saving.
According to the latest Q1 2026 retirement analysis from Fidelity Investments, both 401(k) and 403(b) retirement plans reached record savings levels during the first quarter of the year. The report suggests that many workers are maintaining a long-term perspective and continuing to prioritize retirement preparedness even amid uncertain market conditions.
The total savings rate for 401(k) participants — including both employee and employer contributions — climbed to 14.4%, edging closer to Fidelity’s recommended savings benchmark of 15%. Meanwhile, the total savings rate for 403(b) participants reached 12%.
Individual Retirement Accounts (IRAs) also posted strong results. Fidelity reported record-high IRA contributions in Q1, which increased 29% year-over-year. Additionally, the number of Fidelity IRA account holders making contributions rose 28% compared with the same period last year.
While retirement account balances experienced modest quarter-over-quarter declines during recent market turbulence, the longer-term picture remained positive. Average 401(k) balances increased 11% from Q1 2025, while average 403(b) balances rose 13%. Average IRA balances were also up 7% year-over-year.
The report highlighted several encouraging retirement-saving behaviors among participants and employers alike. Nearly 18% of retirement plan participants increased their savings rate during the quarter, driven in large part by automatic contribution increases. At the same time, only 5.7% of savers changed their investment allocations, slightly below the 6% recorded a year earlier.
Employer contributions also reached new highs. The average quarterly employer contribution rose to a record $2,080 in Q1 2026, surpassing the previous record of $2,020 set one year ago.
“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.”
One of the biggest trends identified in the report was the continued growth of Roth accounts. Fidelity said Roth IRAs represented 67% of all IRA contributions during the quarter, underscoring growing demand for tax-advantaged retirement flexibility. Roth conversion transactions also surged 41% year-over-year.
“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.”
Fidelity’s analysis covered more than 54 million retirement accounts, including IRAs, 401(k)s, and 403(b)s. More information about the report can be found here:
https://www.fidelity.com
In addition to retirement savings trends, Fidelity’s Q1 analysis also highlighted the growing importance of equity compensation programs as a workplace benefit.
According to Fidelity’s recent 2026 Stock Plan Participant Research, equity compensation is increasingly serving as both an entry point into investing and a long-term wealth-building strategy for employees.
The study found that 43% of participants became first-time investors through their company stock plans. Additionally, 73% said they expect to rely on proceeds from equity compensation for long-term investing goals.
Equity compensation also appears to be influencing employee retention and recruiting. Fidelity found that 56% of employees said equity compensation benefits make them more likely to remain with their employer, while 65% consider such benefits an important factor when evaluating a job offer.
Additional retirement data and analysis are available through Fidelity’s quarterly “Building Financial Futures” report and its Workplace Insights hub:
https://workplacesolutions.fidelity.com