401(k) millionaires dip while workers hit record savings rate

Fidelity’s Q1 2026 retirement analysis, covering participants as of March 31, 2026, shows the count of 401(k) accounts with balances of $1 million or more declined on a quarterly basis. At the end of March about 645,000 participants held seven-figure 401(k) balances, down from a record 665,000 at year-end 2025.

The decline was driven by late-March market volatility. Fidelity reports the average 401(k) balance fell to $141,000—roughly a 4% drop from Q4 2025—while average IRA balances moved to $131,380. Despite the pullback in account values, saving behavior strengthened: the total average 401(k) savings rate, including employer matches, reached 14.4%, with the average employee contribution at a record 9.6% and employer contributions averaging 4.8%.

For markets, the quarter’s pullback in equity benchmarks weighed on retirement balances, reducing the tally of 401(k) millionaires. Short-term index declines, notably the S&P 500’s negative return in Q1, translated into lower average balances. However, sustained higher contribution rates and automatic escalation features in many plans have supported net new savings even as valuations fluctuated.

In the broader economic context, the data reflect a split picture: market-driven valuation losses versus improved household saving discipline. Increased adoption of Roth options, higher IRA contribution activity and record employer quarterly contributions point to structural enhancements in retirement savings architecture, while volatility underscores sensitivity of account totals to near-term market moves.

Analysts say the fall in millionaires is largely a valuation effect tied to market swings rather than a behavioral retreat. With contribution rates elevated and auto-enrollment/auto-escalation mechanisms in place, the expectation is that long-term retirement outcomes will remain supported and the number of seven-figure accounts could recover if equity markets sustain gains.