- Benzinga Advisor
- Posts
- Joy To The Portfolio: Record Retirement Accounts Have Come
Joy To The Portfolio: Record Retirement Accounts Have Come
Plus, the latest in market news.
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 all hit record highs. Read on for all the details, as well as the notable milestone that recently took place as well.
Plus, a look at all the top stories and market activity from this past week.
Advisor Spotlight: If you would like to be featured in our upcoming Advisor Spotlight and showcase your business, click here to send us an email.
Benzinga Newsletters: If you are enjoying this newsletter, be sure to check out our other free newsletters. From market insights and crypto, to tech trends and exclusive interviews, we’ve got you covered.
Table of Contents
INDUSTRY CHATTER
This time of year usually comes with extra treats, extra cheer, and a few extra client check-ins. Thankfully, advisors can add one more delight to the season — some genuinely good news for clients’ portfolios.
That cheer isn’t just seasonal: over the past six months, major market indexes have steadily climbed, hitting fresh record highs — up roughly 15% on the year — and overcoming the inflation and tariff scares which nearly put markets in a bear market earlier this year. It’s one thing to read about the market rally in the news, and another to see it reflected in real retirement accounts.
That market backdrop shows up clearly in Fidelity’s latest Q3 2025 analysis — which has data from over 50 million retirement accounts. According to the data, the average 401(k), 403(b), and IRA balances all reached new all-time highs for the second consecutive quarter.
The average 401(k) balance has steadily increased from $127,100 in Q1, $137,800 in Q2, to $144,400 in Q3, representing an increase of 5% quarter-over-quarter, and 14% since Q1. IRA’s also increased 5% quarter-over-quarter climbing from $131,366 to $137,902. Last but not least, 403(b) also saw a 5% increase bring the average account balance to $131,200, up from $125,400 in Q2.
As great as the market has been, it’s not doing all the heavy lifting. Despite this year being very volatile, households didn’t sweat the dips and have remained remarkably consistent throughout the year. Total 401(k) savings rates held steady at 14.2% for the second quarter in a row — made up of a 9.5% employee contribution and a 4.7% employer match.
Where things get especially interesting is how different generations are choosing to save. Roth accounts continue to gain traction, led by younger investors. Nearly 17.5% of all 401(k) participants now contribute to a Roth 401(k), up from 15.9% a year ago. Among Millennials and Gen Z, that number climbs to 19% and 20%, respectively. In IRAs, the preference is even more pronounced — Gen Z directs 95% of contributions to Roth accounts, compared with 75% for Millennials and 66% for Gen X.
This shift reflects more than tax math. Younger savers appear comfortable trading today’s tax bill for tomorrow’s flexibility — an important planning conversation for advisors helping clients think long-term.
In addition, a notable milestone also took place this past quarter as the average balance for women who have been in their 401(k) for 15 years, crossed the half-million-dollar mark for the first time ever, rising to $501,100. This marks a 16.5% increase from Q3 2024.
As the end of the year winds down, this data offers a timely message for client conversations: markets may provide the tailwind, but consistent behavior — saving steadily, staying invested, and using the right vehicles — is what quietly builds momentum over time. And, as Albert Einstein once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it.”
WEEKLY MARKET RECAP
The stock market ended a volatile week with gains, lifted by easing inflation and upbeat corporate results, even as rising unemployment and fragile consumer sentiment raised fresh doubts about the economy’s strength in the fourth quarter.
Major indexes regained footing by Friday, after stumbling early in the week amid tech-sector volatility and growth fears.
The catalyst was a softer-than-expected November inflation report and robust earnings from Micron (MU), which revived optimism around artificial intelligence investment.
Labor Market Cracks, Inflation Falls But Data Quality Is An Issue
The unemployment rate climbed to 4.6% in November, up from 4.4% in September, marking the highest level in over four years.
Job losses were concentrated in government roles, especially in October, while the private sector continued to see employment growth, albeit at a slow pace.
Economists cautioned that recent data should be interpreted carefully, as a 43-day federal government shutdown disrupted household data collection, potentially distorting employment figures.
The November consumer price index showed annual inflation easing to 2.7%, below expectations. While the trend was favorable, experts warn that data gaps from the shutdown limit confidence in the precision of the report.
Investors increasingly expect the Federal Reserve to pause. After three consecutive interest rate cuts, traders assigned roughly a 75% probability that policymakers will keep rates unchanged at their first meeting of 2026 in late January, between 3.5% and 3.75%.
On the consumer front, the broader confidence remains depressed. The University of Michigan lowered its December consumer sentiment index from the preliminary reading, keeping confidence near historic lows. While inflation expectations have moderated, they remain elevated by long-term standards.
Corporate earnings added important context to the week's market moves. Micron delivered results well above analysts' expectations, driven by strong demand for memory chips used in artificial intelligence data centers. The upbeat outlook sent the stock sharply higher and reinforced confidence around AI-related capital spending.
Nike (NKE) exceeded profit estimates but saw its shares fall as investors focused on weaker margins and slowing sales in China.
FedEx (FDX) also reported better-than-expected results, while Carnival (CCL) stood out with strong earnings, record revenue for 2025 and the reinstatement of its dividend, signaling confidence in the cruise industry's recovery.
BENZINGA NEWSLETTER SPOTLIGHT
The Ring The Bell newsletter is free, and read by hundreds of thousands of market enthusiasts each day.
From breaking news and market movers to your daily market recap and top stories, Ring The Bell delivers everything you need to stay ahead in the market.
We also look ahead to key earnings, economic reports and major events so you’re always prepared for what’s next — all delivered straight to your inbox.
A newsletter built for market enthusiasts, written by market enthusiasts.
THE WEEK AHEAD
Economic Data
Monday: No major reports
Tuesday: Consumer confidence, industrial production, GDP, durable-goods orders
Wednesday: Initial jobless claims
Thursday: Christmas Holiday
Friday: No major reports
Earnings
No earnings of note due to the Christmas holiday
Click here for the full calendar of economic data and earnings reports.
Reminder, if you would like to be featured in our upcoming Advisor Spotlight and showcase your business, click here to send us an email.
BEFORE YOU GO
Were you forwarded this email? Click here to subscribe.
And be sure to check out our other newsletters:
Ring The Bell: Created for market enthusiasts by market enthusiasts, this twice-daily newsletter delivers top stories, fast movers, and hot trade ideas straight to your inbox. Subscribe here.
Future Finance: Where fintech, crypto, and the future of finance collide. Future Finance is a perfect lunch read packed with quick bites for industry enthusiasts. Subscribe here.
Tech Trends: Get the inside scoop on AI, the hottest gadgets, and mind-blowing tech trends. Subscribe here.