Fidelity Says Retirement Contributions Have Hit an All-Time High: Are You Contributing Enough?

shapecharge / iStock/Getty Images

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 Years
Helping You Live Richer

Reviewed
by Experts

Trusted by
Millions of Readers

Although many Americans have fallen behind on their retirement savings, it’s not necessarily for lack of effort. In fact, Americans overall are contributing to their 401(k) accounts at a record rate, according to a report from Fidelity Investments.

Total 401(k) savings rates set a new all-time high of 14.2% during the 2025 first quarter — the closest it has ever gotten to Fidelity’s suggested savings rate, which is 15% of your pre-tax income.

If you wonder whether you’re contributing enough to your retirement savings, read more below on what your retirement savings strategy should look like.

‘Milestone’ Contribution Rate

One reason the Q1 figure edged so close to 15% is because of a “milestone” average employee contribution rate of 9.5%, Fidelity noted. There was also an employer contribution rate of 4.8% — the highest level to date.

Other highlights from the Fidelity report include the following:

• Average long-term retirement balances fell slightly from the previous quarter but rose on an annual basis.
• The percentage of workers contributing to a Roth 401(k) increased to 16.8% in the 2025 first quarter from 15.2% the prior year. The percentage of individuals initiating a new 401(k) loan dropped slightly to 2.3% from 2.4%.
• Average IRA account balances fell slightly year-over-year, but contributions during the year rose to $3,231 from $3,093.

“Although the first quarter of 2025 posed challenges for retirement savers, it’s encouraging to see people take a continuous savings approach which focuses on their long-term retirement goals,” Sharon Brovelli, Fidelity’s president of Workplace Investing, said in a news release. “This approach will help individuals weather any type of market turmoil and stay on track to reach their retirement goals.”

How Much Should You Contribute?

Fidelity’s guideline is to work your way up to saving 15% of your pretax income each year for retirement, including employer contributions. The 15% can also include contributions you make to an IRA.

As Fidelity noted, the 15% guideline is based on research showing that most people need between 55% and 80% of their pre-retirement income to finance their lifestyles in retirement. That income can include Social Security checks.

A recent blog from T. Rowe Price offered similar advice, suggesting that saving 15% of your income each year (including any employer contributions) is an “appropriate savings level” for many people.

In terms of how much you should have saved in pure dollar terms, here are T. Rowe Price’s recommendations:

Share This Article: