Americans' 401(k) Balances Fall 4% in Q1 as Loan Use Climbs to 19.2%
Updated
Updated · Hindustan Times · Jun 4
Americans' 401(k) Balances Fall 4% in Q1 as Loan Use Climbs to 19.2%
3 articles · Updated · Hindustan Times · Jun 4
Summary
Average 401(k) balances fell 4% from late 2025 to March 2026 to $141,000, according to Fidelity, after a volatile quarter that cut into retirement savings less sharply than many feared.
Market swings drove the drop: the Dow topped 50,000 in February, then slid nearly 11% by late March amid U.S. air strikes and the ongoing Iran war.
Retirement millionaires also thinned, with 401(k) millionaires down 3% to 645,000 and IRA millionaires down 2% to 571,622, though both totals remained well above year-earlier levels.
Borrowing against retirement savings increased, with 19.2% of workers carrying 401(k) loans and 2.4% starting new ones in Q1; the average new loan was $8,420.
Savings behavior stayed resilient despite the setback: 18% of participants raised contributions, the total savings rate reached 14.4% versus Fidelity's 15% target, and average employer contributions hit a record $2,080.