According to Fidelity Investments’ latest Q2 2025 retirement analysis, retirement savers got some good news: average 401(k), 403(b), and IRA balances hit record highs. Despite the rocky market start this quarter, balances climbed: 401(k)s up 8%, 403(b)s up 9%, and IRAs up 5% compared to a year ago.
That’s not just a stat to file away. It’s a reminder of one of the most basic, yet hardest-to-follow principles of retirement saving: stay the course.
As someone who has spent a career watching the retirement plan industry twist itself in knots over fees, litigation, and compliance, I can tell you this: the real “secret sauce” of retirement success isn’t hidden in the latest investment option or recordkeeping platform. It’s about consistency. Participants who avoid making emotional decisions, who contribute steadily and diversify reasonably, are the ones who build wealth over decades.
Fidelity also drilled down on higher education employees. The findings were encouraging: strong savings rates and healthy asset allocation. But not everything is rosy. Younger workers and women, in particular, are showing gaps in preparedness. That’s not a higher-ed-only problem, that’s an industry-wide challenge. It’s another reminder that plan sponsors and providers need to think beyond average balances and address disparities within their participant population.
When I talk to plan sponsors or providers at “That 401(k) Conference,” I often joke that my New York Mets have taught me patience (too much patience, maybe). But it’s the same with 401(k)s: you can’t let one bad quarter define your season. You stick with your plan, and over time, the wins outweigh the losses.
The lesson from Fidelity’s Q2 analysis is simple: retirement savers who tuned out the noise and kept contributing are in a stronger position today. If you’re a plan sponsor or advisor, your job isn’t just about picking funds or benchmarking fees—it’s about reminding participants of this very truth.
Because at the end of the day, the best retirement strategy is often the least exciting one: keep calm, keep saving, and let time and compounding do their work.
