401(k) Average Balance Hits $155,800, Up 13.1% Year Over Year

Fidelity Investments reported that the average 401(k) balance reached $155,800 in Q2, reflecting a 13.1% increase from the previous year. The average individual retirement account balance also rose 10% to $144,523. Despite these record highs, some workers accessed their accounts for loans and hardship withdrawals, indicating financial stress; 19.5% had outstanding loans and 3% took hardship withdrawals. Market gains also contributed to these increases, with the Dow Jones up approximately 10% year to date and the S&P 500 up about 12%. This data highlights the importance of monitoring retirement savings amid ongoing inflation pressures for investors.