From Yahoo Finance: 2025-06-08 15:00:00

Retirement savers in 2025 faced stock market volatility and tariff uncertainty, but many didn’t see double-digit losses in their 401(k) savings. Average balances fell 3% to $127,100, with 1% gain from a year ago. Fidelity saw 512,000 401(k)-created millionaires, down 4.6% from the previous quarter.

Stock market conditions have been turbulent, with some investors experiencing deep losses in 2025. Companies like General Motors and Stellantis saw significant declines, while Ford stock remained relatively stable. Uncertainty around tariffs and trade wars impacted stock prices, with Tesla and Nike seeing drops.

Despite the market’s unpredictability, many investors stayed the course, contributing to their 401(k) plans. The 401(k) total savings rate hit a record 14.3%, with an unprecedented employer contribution rate of 4.8%. Fidelity recommends saving at least 15% annually for retirement to maintain one’s lifestyle.

The year 2025 brought about economic shifts and market swings, causing uncertainty among investors. It is crucial to maintain a long-term plan and continue contributing to 401(k) savings. While unpredictability remains, many are resilient, with portfolios starting to return to positive territory by early May.

Read more: Not easy to become a 401(k) millionaire as balances dip in first quarter, Fidelity says