Retirement Account Statistics: Average 401(k) Return and More
There are $43.4 trillion in total U.S. retirement assets. Here are the key retirement statistics to know.
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Content Management Specialist Americans had $9.3 trillion invested in 401(k)s and $18 trillion in IRAs in the second quarter of 2025, according to the Investment Company Institute .
If your retirement savings are a portion of one of those totals, you may have wondered how your plan — and the investment choices you have within it — compares.
📝 Worrying about retirement? Almost 2 in 5 Americans, or about 39%, cited "not having enough saved for retirement" as a financial concern, according to a NerdWallet study on frequent money worries.
Average annual 401(k) return: 8.0%
The average annual 401(k) return was 8.0% per year from 2020 through 2024, according to the most recent data available from Vanguard, one of the largest retirement account recordkeepers . This average is based on data from 401(k) participants who were enrolled in their plans for all five of those years.
Many variables determine a 401(k)’s return, including the investments you choose, stock market performance and 401(k) fees. Learn more about the average stock market return.
Average 401(k) employee contribution: 7.7%
The average annual employee 401(k) contribution was 7.7% of their income in 2024, according to Vanguard .
The IRS sets the bar for contributions pretty high: The 401(k) contribution limit for employees is $24,500 in 2026. People aged 50 and older can contribute an extra $8,000 as a catch-up contribution. Due to the Secure 2.0 Act, those aged 60, 61, 62 and 63 get a higher catch-up contribution of $11,250.
» Dive deeper: Explore average and median retirement savings by age
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Average 401(k) employer contribution: 4.6%
Probably the best feature of 401(k) plans is the employer contribution — aka free money — typically provided by matching a portion of what employees save.
There’s a dizzying array of formulas companies use to determine how much of your contributions they’ll match. The most common formula, according to Vanguard’s 2025 How America Saves report, is 50% of every dollar an employee contributes, up to 6% of their salary.
The more telling number is the value of the match. That figure — according to Vanguard — is 4.6% of pay on average per year.
The average total participant contribution rate, combining employer and employee contributions, was 14.2% in the third quarter of 2025, according to Fidelity, another leading investment company . That’s right on target, considering experts recommend saving 12% to 15% of your salary for retirement. Check out our retirement calculator to explore what may work for you.
Number of 401(k) investment choices: 27.6
In 2024, the average Vanguard plan offered 27.6 investment choices, but some other plans may provide half of that. Per the Financial Industry Regulatory Authority (FINRA), most plans provide at least three options — most commonly bonds, money market funds and mutual funds that offer exposure to domestic and international stocks .
Fidelity says 95.4% of its plans default to using target-date mutual funds, as of the third quarter of 2025 . Known as a “set it and forget it” retirement investment, target-date funds include a mix of investments that automatically rebalance as you get closer to retirement.
Average 401(k) fees: Vary
You might not know it, but if you have a 401(k), you are definitely paying fees to the provider for maintaining your account. These fees can include investment, advice and administrative fees.
Generally, the larger the plan, the lower the fees. Your plan is required to send you a quarterly fee disclosure statement. If you don’t like what you see, consider investing just enough money in your 401(k) to get the company match for the year. Then contribute any additional retirement savings to an IRA, where you have much more control over costs and investment choices.
Average 401(k) balance: $144,400
You skipped all that stuff above to scroll down to this number, didn’t you? No judgment from us. Financial rubbernecking is a beloved pastime.
Without further ado, the average 401(k) balance at Fidelity in the third quarter of 2025 was $144,400 .
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Portion of plans that offer a Roth 401(k): 94.4%
The Roth 401(k) is a mashup of a 401(k) and a Roth IRA, an individual retirement account you fund with post-tax dollars in exchange for tax-free investment growth and withdrawals in retirement.
At Fidelity, the number of plans offering a Roth option has grown, and 94.9% of its plans now offer a Roth 401(k) .
Although you don’t get a tax deduction on your contributions as you do in a traditional 401(k), there’s a lot to like about a Roth 401(k). It has larger contribution limits than a Roth IRA and is a convenient workaround for those who earn too much to contribute to a Roth IRA, which has income limits for eligibility.
Average IRA balance: $137,902
According to Fidelity, the average IRA balance was $137,902 in the third quarter of 2025 . The plan provider said it has 18.3 million IRAs, a 13% year-over-year increase .
Of those millions of IRAs, 77% were Roth IRAs.
The IRS allows investors under 50 to contribute up to $7,000 for 2025 ($8,000 if aged 50 and older). For 2026, the limit is $7,500 ($8,600 if aged 50 and older). .
» Learn more: IRA vs. 401(k): How to choose
The bottom line
All of this retirement account talk is also only worthwhile if it inspires you to look more closely at your own savings. Ultimately, it’s all about answering one key question: Am I saving enough, and in the right accounts?
According to the Federal Reserve's 2022 Survey of Consumer Finances, 54.4% of all families have retirement accounts, leaving nearly half of Americans who don't have retirement accounts.
When you distribute by race and ethnicity, you'll see that 61.8% of white families had retirement accounts, compared with 34.8% of Black families and 27.5% of Hispanic families .
» Ready to get started? Read our guide to retirement planning
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- 1. Investment Company Institute. Release: Quarterly Retirement Market Data, Second Quarter 2025.
- 2. Vanguard. How America Saves 2025. Accessed Dec 23, 2025.
- 3. Vanguard. How America Saves 2025: Data that leads. Accessed Dec 23, 2025.
- 4. Fidelity. Q3 2025 Retirement Analysis. Accessed Dec 23, 2025.
- 5. Financial Industry Regulatory Authority. Retirement Accounts. Accessed Dec 23, 2025.
- 6. Fidelity. Fidelity’s Building Financial Futures report. Accessed Dec 23, 2025.
- 4. Fidelity. Q3 2025 Retirement Analysis. Accessed Dec 23, 2025.
- 6. Fidelity. Fidelity’s Building Financial Futures report. Accessed Dec 23, 2025.
- 9. Fidelity. Average retirement account balances. Accessed Dec 23, 2025.
- 10. Fidelity. Building Financial Futures: Q3 2025 report. Accessed Dec 23, 2025.
- 11. Internal Revenue Service. 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500. Accessed Dec 23, 2025.
- 12. The Federal Reserve. Retirement accounts by race or ethnicity. Accessed Dec 23, 2025.
On this page
- Average annual 401(k) return: 8.0%
- Average 401(k) employee contribution: 7.7%
- Average 401(k) employer contribution: 4.6%
- Number of 401(k) investment choices: 27.6
- Average 401(k) fees: Vary
- Average 401(k) balance: $144,400
- Portion of plans that offer a Roth 401(k): 94.4%
- Average IRA balance: $137,902
- The bottom line
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