The average 401(k) and IRA balance rose 11% and 7%, respectively, between Q4 2024 and Q4 2025, according to a recent Fidelity analysis.<\/p>\n
Some financial advisors believe that savers are more likely to stash away money in retirement accounts when the stock market is performing well.<\/p>\n
Over the past year, retirement savers have watched their balances grow substantially thanks to a booming stock market and increased contributions<\/a>.<\/p>\n A recent analysis by Fidelity looked at tens of millions of IRA and 401(k) accounts and found the average 401(k) balance had increased more than 11% between Q4 2024 and Q4 2025. The average IRA balance rose 7% during that time.<\/p>\n In 2025, the S&P 500 gained nearly 18% largely due to strong growth in AI stocks such as NVIDIA (NVDA), Meta (META), and Alphabet (GOOGL).<\/p>\n The solid performance of the stock market may have encouraged savers to stash more in their retirement accounts, according to some financial advisors.<\/p>\n “I have seen that once clients experience the benefit of a rising market and the power of compounding interest<\/a>, they tend to be more motivated to continue to fund their retirement accounts,” wrote Zachary Bachner, a certified financial planner (CFP) at Summit Financial Consulting, in an email.<\/p>\n Long-term success in retirement savings depends on consistency. Regular contributions help you build wealth steadily without trying to time the market.<\/p>\n In Q4 2025, total IRA contributions were up 23% from the previous year. Additionally, the number of IRA accountholders making contributions increased 25%.<\/p>\n While seeing the market reach record highs might spur savers to contribute more to their retirement accounts, Joon Um, a CFP and owner at Secure Tax & Accounting, notes that people shouldn’t just invest more because of strong market performance.<\/p>\n “We try to remind clients not to chase markets. The goal isn\u2019t investing more because the market just went up\u2014it\u2019s building the habit of consistent contributions regardless of market conditions,” wrote Um in an email.<\/p>\n Instead, savers should think about their retirement plan holistically<\/a>, estimating how much they’ll need to have saved for retirement and the amount they’ll need to contribute over time to reach that goal.<\/p>\n