Today on Finance Focus: Fidelity’s latest data shows that despite a 3% drop in average 401(k) balances to $127,100 in the first quarter of 2025—a decline mirroring the S&P 500’s 4.3% dip—American workers aren’t shying away from contributions. They boosted their average savings rate to a record 14.3%, with 17.4% of participants increasing their contribution rates during the quarter. As Fidelity puts it, “The commitment to retirement saving remains strong,” highlighting what it calls “resilient behaviors” among savers. Sharon Brovelli, Fidelity’s president of workplace investing, adds that “it’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals. This approach will help individuals weather any type of market turmoil and stay on track.” Yet the median balance stands at just $28,900, revealing wide gaps in retirement readiness. Baby Boomers lead at a 17.2% savings rate, followed by Gen X at 15.4%, Millennials at 13.5%, and Gen Z raising contributions most aggressively.
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