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The Practice

The 14.4% savings benchmark belongs in annual reviews

Fidelity's Q2 data makes the average participant's deferral the number to put in front of clients saving less.

At a glance

30-second brief
  • Fidelity's Q2 data makes the average participant's deferral the number to put in front of clients saving less.

  • Fidelity's Q2 2026 retirement data gives advisors the number to carry into annual reviews: the average 401(k) participant now defers 9.6% of pay on top of a 4.8% employer contribution, a 14.4% total savings rate that sets a record for the second consecutive quarter and lands just under the 15% Fidelity recommends.

  • The figures come from Fidelity's Retirement Analysis of more than 55 million account holders, reported by NAPA Net on September 3.

Fidelity's Q2 2026 retirement data gives advisors the number to carry into annual reviews: the average 401(k) participant now defers 9.6% of pay on top of a 4.8% employer contribution, a 14.4% total savings rate that sets a record for the second consecutive quarter and lands just under the 15% Fidelity recommends.

The figures come from Fidelity's Retirement Analysis of more than 55 million account holders, reported by NAPA Net on September 3. The market's run is all over the data: average balances across 401(k) plans, 403(b)s, and IRAs hit records, 401(k) balances grew 10.5% in the quarter for the strongest increase since Q4 2020, and the number of 401(k)-created millionaires reached 769,000.

The record balances are less actionable, though, than the behavior underneath them. More than 12% of participants raised their deferrals in the quarter, and 81.2% saved enough to capture the full employer match—meaning nearly one in five did not—so a client whose deferral trails the average now has a direct comparison: the average participant defers 9.6%, captures the match, and lands at 14.4% total.

The report's direction matters as much as its level. A 10.5% quarterly balance gain can tempt clients to ease off contributions, but workers kept saving at record rates despite market fluctuations earlier this year and ongoing concerns about the economy. That contrast gives advisors an opening to make the annual readiness review about contribution rates and what the client controls, not about what the market delivered.

Fidelity's segment data tells the same story. Women with at least five years in a 401(k) averaged $273,400, female IRA investors averaged $130,231—up 12% from a year earlier—and directed 72% of their IRA contributions to Roth IRAs. Gen Z workers five years into a plan averaged $77,200, while Millennial 401(k) balances rose 14.2% in the quarter to $94,300. For younger and female clients, the lesson is continuity: staying in the plan is what the averages reward.

Fidelity has produced a run of advisor-facing data this year; this publication has covered the 69% wealth figure that argues for two service tracks, and this savings-rate report is the latest. The number worth carrying into the annual review is not 769,000 millionaires; it is the 9.6% employee deferral, and the question it puts to every client whose contribution rate trails the average.

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