401(k) retirement accounts fell in early 2026, with average balances dropping 4% between the end of 2025 and March 2026, according to a Fidelity Investments report.
The stock market was unstable in the first few months of 2026, with the Dow Jones crossing 50,000 points for the first time on February 6, but later falling nearly 11% by late March.
Despite market swings, the losses were not as severe as many feared, with the number of 401(k) millionaires declining 3% to 645,000 people with at least $1 million in their 401(k) accounts in Q1 2026.
However, there are still more 401(k) millionaires than a year ago, with the number being 26% higher than in Q1 2025.
More workers are borrowing money from their retirement savings, with the share of workers with outstanding 401(k) loans rising to 19.2% in Q1 2026.
Despite economic uncertainty, many Americans increased retirement savings, with nearly one in five workers saving more and automatic increases helping boost savings.
The total retirement savings rate reached 14.4%, with employer contributions reaching a record level and the average Fidelity 401(k) balance standing at $141,000 in Q1 2026.
Long-term growth remains strong, with balances being 14% higher than five years ago and 61% higher than in Q1 2016.
