From Yahoo Finance: 2025-06-08 15:18:00

In 2025, retirement savers faced volatile stock market conditions and tariffs, yet many only saw a 3% decline in their 401(k) savings, with an average balance of $127,100, up 1% from last year. Fidelity reported a decrease in 401(k) millionaires, down 4.6% from the previous quarter’s 537,000.

Despite the market turmoil, Fidelity’s data reflects a 1% gain in 401(k) balances year-over-year. The stock market has seen unpredictable swings, with some companies facing significant losses due to tariffs and trade war uncertainty. Investors have been advised to maintain a long-term strategy in the face of heightened instability.

With the S&P 500 up 0.92% year-to-date, investors are navigating a year of ungodly volatility. Trump’s “Liberation Day” tariffs led to a market revolt, prompting a 90-day pause. Many investors have remained resilient, with a record-high 401(k) total savings rate of 14.3%, moving closer to the recommended 15% savings rate.

Fidelity’s data shows that most individuals continued to contribute to retirement savings accounts, with over 66% using target date funds or managed accounts. The Secure 2.0 Act introduced auto-enrollment and escalation rules for new 401(k) plans, aiming to increase savings rates gradually over time. While uncertainty remains, investors are urged to stay the course amidst economic shifts.



Read more at Yahoo Finance: Fewer 401(k) millionaires minted in first quarter thanks to market mayhem, Fidelity says