Retirement balances are up, but more workers took hardship withdrawals
CNBC • • business
Key Points:
- President Donald Trump highlighted in his State of the Union address that typical 401(k) balances have increased by at least $30,000 since he took office, with Fidelity data showing the average 401(k) balance rose 11% to $146,400 in 2025.
- Vanguard's report confirmed a 13% increase in retirement account balances, driven mainly by strong market gains, with the average account balance reaching $167,970 by the end of 2025.
- Positive savings behaviors and contributions averaging 14.2% helped boost balances, alongside solid stock market performance, including significant gains in the S&P 500, Nasdaq, and Dow Jones indexes over the past three years.
- Despite rising balances,
