Happy Sunday, and welcome to Benzinga’s financial advisor newsletter.

Today we're discussing retirement savings. According to Fidelity’s Q2 2025 retirement analysis — which has data from over 50 million retirement accounts — the average 401(k), 403(b), and IRA balances have hit record highs, as well as 401(k)-created millionaires. Read on for all the insights and takeaways.

Plus, a look back at the last week of market activity.

Table of Contents

• Industry Chatter

• Weekly Market Recap

• The Week Ahead

INDUSTRY CHATTER

401(k)-Created Millionaires Reached Another Record High — IRA Contributions Rise For Gen X And Boomers

If clients are asking about their retirement accounts, here’s some good news you can share with them. According to Fidelity’s Q2 2025 retirement analysis — which has data from over 50 million retirement accounts — the average 401(k), 403(b), and IRA balances hit record highs.

The average 401(k) balance increased from $127,100 in Q1, to $137,800 in Q2 for an increase of 8%. IRA’s also increased 8% quarter-over-quarter climbing from $121,983, to $131,366. Last but not least, 403(b) saw the highest increase at 9%, going from $115,424 in Q1, to $125,400 in Q2.

The cause? A strong performance on Wall Street in which indexes such as the S&P 500 have soared more than 30% off the April lows. Year to date, the S&P 500 is up 10% and the rally could keep going if the Federal Reserve goes ahead with multiple rate cuts by the end of the year.

The other key piece — and just as important — is the fact that most savers simply stayed the course, didn’t flinch, and were consistent in their contributions, despite the market sell-off in Q1. That quiet discipline combined with a strong market rebound fueled the record-breaking balances.

For financial advisors, this is a moment worth highlighting with clients — especially those who might be tempted to time the market or make drastic changes during periods of uncertainty. These results are a real-world example of why long-term consistency matters more than short-term strategy.

Fidelity also notes that Baby Boomers and Gen Xers led the way in IRA contributions, continuing to prioritize retirement in a big way. At the same time, there are still some concerning gaps, particularly among younger savers and women — especially those in sectors like higher education. This can be a great opportunity for advisors to step in with encouragement, education, and personalized strategies to help close those gaps.

And when it comes to 401(k)-created millionaires, the number of those reached an all-time high with 595,000 individuals in Q2, thanks to the help of the massive market rebound, combined with steady contributions.

In the end, higher balances are always good news — but they’re also a reminder of what steady, long-term investing can do. The market may have helped this quarter, but the real progress came from those who stuck with the plan and that continue to play the long game.

WEEKLY MARKET RECAP

Job Market Cracks, Fed Steps In, Wall Street Cheers

The U.S. labor market hit the brakes hard this summer, showing cracks not seen since the pandemic. In August, nonfarm payrolls rose by just 22,000—down from July's weak 79,000 gain—and June was revised to show a net loss of 13,000 jobs, the worst monthly print since December 2020.

The three-month average now sits at 29,000, a level so low that it virtually seals the case for Federal Reserve rate cuts. The first move is widely expected to come at the September 17 meeting with a 25-basis-point reduction, followed by additional cuts in October and December.

Lower-rate expectations are keeping Wall Street upbeat, even as the labor market stagnates. Seasonality fears — since September has historically been a rough month for stocks — were brushed aside as the S&P 500 broke to fresh record highs on Thursday before a mild pullback on Friday. Year-to-date, the index is still up about 10%.

Gold, meanwhile, is in a league of its own. The precious metal smashed through the $3,500 barrier that had capped prices since April, logging gains in seven of the past eight sessions. Up 37% so far this year, gold is on track for its best annual performance since 1978.

Beyond rate-cut tailwinds, investors appear to be hedging against extreme scenarios, chief among them the risk that the Federal Reserve's independence could come under political pressure from President Donald Trump. While still a remote possibility, the uncertainty has been enough to fuel persistent safe-haven demand.

At the sector level, cyclical stocks lagged, with energy, industrials and financials ending the week in the red. Communication services outperformed, driven by a 9% surge in Alphabet (GOOGL), its best week since April 2024, after a U.S. federal judge ruled against breaking up Google's core platforms in a major antitrust case.

Detroit automakers struggled. As of Friday midday trading, General Motors (GM) and Ford Motor (F) were each down 0.5% for the week, while Stellantis N.V. (STLA) tumbled more than 5%.

THE WEEK AHEAD

Adobe, Oracle, Chewy, Gamestop, Kroger and Synopsys report earnings, CPI and PPI, and more

Economic Data

• Monday: Consumer Credit

• Tuesday: NFIB Optimism Index and 3-year note auction

• Wednesday: Producer Price Index (PPI), Wholesale inventories, and oil inventories

• Thursday: Consumer Price Index (CPI) and Initial jobless claims

• Friday: Consumer Sentiment, WASDE report, and oil rig count

Earnings

• Monday: Caseys General Stores (CASY), Planet Labs (PL)

• Tuesday: Oracle (ORCL), Synopsys (SNPS) Gamestop (GME)

• Wednesday: Chewy (CHWY), Daktronics (DAKT)

• Thursday: Adobe (ADBE), Kroger (KR), RH (RH)

• Friday: Huize (HUIZ)

Click here for the full calendar of economic data and earnings reports.

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