Business & Finance
Average 401(k) and IRA balances reach record highs as loan and hardship withdrawals rise
Second-quarter market gains pushed retirement account balances up, while an increasing share of workers tapped their accounts early.
The short version
- Fidelity Investments reported that average 401(k) balances reached a record $155,800 and average IRA balances rose to $144,523 in the second quarter of 2026.
- Higher stock market returns and a steady average total savings rate of 14.4% supported the gains.
- Despite higher balances, more savers accessed their retirement funds early, with 19.5% holding an outstanding loan and 3% taking hardship withdrawals.
- Financial advisers caution that early withdrawals reduce long-term compound growth as households navigate inflation and living costs.
Key facts
- The average 401(k) balance increased 13.1% year-over-year to a record $155,800 in the second quarter of 2026, including a 10.5% jump from March through June.[CNBC · CNBC]
- The average individual retirement account (IRA) balance rose 10% year-over-year to an all-time high of $144,523.[CNBC]
- Among Fidelity participants, average 401(k) balances stood at $75,200 for individuals in their 30s and $156,800 for those in their 40s.[CNBC]
- Combined employee and employer 401(k) contribution rates averaged 14.4% of pay, with more than 80% of participants contributing enough to receive full employer matches.[CNBC · CNBC]
- In 2026, the individual contribution limit reached $24,500 for a 401(k) and $7,500 across traditional and Roth IRAs.[CNBC]
- The proportion of workers taking a hardship withdrawal rose to 3% from 2.6% a year earlier, while 19.5% carried an outstanding 401(k) loan.[CNBC]
What remains uncertain
- It remains uncertain whether heightened rates of hardship withdrawals and account loans will continue or diminish as broader inflation and living costs evolve.[CNBC]