Retirement account balances fell in the first quarter of 2025, according to Fidelity Investments, the largest 401(k) provider in the U.S.

Average 401(k) retirement balances fell 3% from late last year through the first three months this year, according to Fidelity Investment data.

Fidelity Investments found that average 401(k) and IRA balances fell 3% and 4% respectively in the first quarter of 2025 due to market swings, while average retirement savings rates hit a record high driven by increased employee and employer contributions.