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Americans’ 401(k) balances reached a record high in the second quarter of 2026, new data shows.
The average 401(k) balance climbed to a record $155,800 in the second quarter of 2026, up 10.5% from the previous quarter and 13.1% from a year earlier, according to Fidelity Investments’ Q2 2026 Building Financial Futures report.
“After a slight drop in the first quarter of 2026, the average 401(k) and 403(b) account balances rebounded to record levels in Q2 2026,” the report noted.
Jade Warshaw, co-host of “The Ramsey Show,” told FOX Business that the gains reflect years of strong market performance, increased participation from younger workers and a growing desire among Americans to build financial security amid ongoing economic uncertainty.
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“I think it’s a combination,” she said. “… I’ve seen a trend with Gen Z, who is really investing more.”
Heightened economic uncertainty has played a role, prompting some Americans to focus on the aspects of their finances that they can control, according to Warshaw.
“Depending on the generation that we’re talking about and whose account we’re talking about, different things are driving it,” Warshaw said. “I think right now, there’s just a want and a need for security.”
She added, “You can look at the worldview, and it can just feel a little bit anxiety-ridden, and a lot of us find peace in controlling a controllable.”
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Warshaw also credited years of strong market gains with encouraging more workers to continue investing.
“I think a lot of people are wanting to capitalize on that,” she said.
However, Warshaw cautioned against prioritizing retirement investing before building a financial foundation.
She encouraged Americans to follow Ramsey Solutions’ “7 Baby Steps,” beginning with a $1,000 emergency fund, paying off consumer debt and building three to six months of living expenses before investing 15% of gross income for retirement.
For workers whose retirement accounts have reached record balances, Warshaw said the biggest mistake is trying to outsmart the market.
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“What I suggest for people to do is invest in the most boring way possible,” she said.
Rather than reacting to market swings, Warshaw recommends consistently investing through payroll deductions using dollar-cost averaging.
“You set it and forget it and let it run,” she said, comparing the approach to “the tortoise and the hare” and arguing that steady investing gives savers the best chance to build long-term wealth.
