It is understandable if watching the news over the last few weeks has made you nervous about your investment portfolio. The dramatic swings in the market, precipitated by growing conflict around the world, would make anyone anxious. However, the extreme volatility in the market from day to day is not necessarily an indication of how it will finish for the year. Read on for what history tells us about market volatility and overall performance.

Despite Erratic Market, Average 401(k) Up 11% in 2025

The year 2025 took investors on a wild ride. The roller coaster stock market performance all worked out in the end, based on a new report from Fidelity Investments. The investment company analyzed almost 25 million accounts and found that the average 401(k) balance actually increased by 11% for the year. The average balance ended up at $146,100, proving that money can still be made even if the swings seem to be trending negatively.

The data from Fidelity marks the third straight year that the average corporate workplace retirement account boasted a percentage increase in the double digits. In addition to the overall performance of the markets, experts credit a commitment to saving by plan participants for the significant gains.

Looking at a few specifics, the S&P 500 finished the year up 16.39%. The tech-heavy Nasdaq soared more than 20%. Meanwhile, the S&P Aggregate Bond Index closed the year up 2.91%.

The average savings rate for 401(k) participants came in at 14.2%, similar to the numbers from the prior year. This figure includes an average employee contribution rate of 9.5% of gross income in addition to an average employer match of 4.7%.

Although the average balance sum of $146,100 is not particularly high, it is still well over the median balance of $34,400. The median amount represents the midpoint, indicating where half of the accounts are lower. This statistic takes into consideration all participants, meaning that even those new to the game will be included in the average.

The balances trend much higher when looking at participants who have been investing for at least 15 years. These median balances were a healthier $377,700. The report detailed that 665,000 total accounts finished the year with a balance of at least $1 million. This is meaningfully higher than the 537,000 accounts that hit this benchmark in 2024. Participants at this level had been investing for an average of 25 years, speaking to the importance of consistency.

Looking at Generation X Investing Specifically

The majority of accounts over the coveted million-dollar mark belong to Gen X investors. Defined as people born between 1965 and 1980, this generation holds 60.3% of the accounts at this level. In comparison, Millennials hold just 4.1% of the accounts with balances over one million.

Diving deeper into the Gen X investing numbers, this generation saved an average of 15.4% of gross income over the course of 2025. Roughly 10% of these investors were putting money into catch-up contributions. According to federal regulations, anyone over 50 years old can sock away an additional $7,500 on top of the $23,500 limited mandated by the government. Investors between the ages of 60 and 63 can save an additional $11,250.

The median 401(k) balance for Gen Xers was only $67,100 at the end of 2025. Gen X is the first generation that entered the workforce when companies began phasing out pensions, relying on employee 401(k)s instead. This means that they are also the first generation without a pension safety net to lean on in the retirement years.

Investment Data for Women

Fidelity also provided a detailed analysis of how women are faring with their 401(k) plans. The average balance for female investors was up 22% over the past five years. This was a tad higher than the 20% increase reported across all accounts during the same time. However, the media 401(k) balance came in at just $29,400.

Despite the lower overall balances for women, there is positive news in this analysis. According to Fidelity, nearly 40% of women increased their rate of saving last year. This includes 47% of Gen Z women, representing the younger set. In addition, the average balances among women who have been investing for at least 15 years reached $508,700 in 2025. This was up from $453,500 the year prior.

Investment data is just a snapshot of the overall health of the economy. While these numbers are important, they do not demonstrate how Americans in lower-income classes are faring in this challenging economy.

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