401k Balances Rebound 11% in 2025
The average 401(k) balance in the US grew 11% during 2025 according to Fidelity, driven by market gains and continued contributions. For those approaching retirement, delaying Social Security claims can boost benefits up to 8% per year. UK households face continued pressure as economic forecasts show modest GDP growth and inflation staying above 2%.
The 2025 rebound in retirement savings caps a multi-year bull run for markets. The S&P 500 gained an impressive 33% in 2024 and 22% in 2023, providing significant tailwinds for investment accounts. This marks the third consecutive year of double-digit percentage growth for 401(k)s. The average total savings rate, combining employee and employer contributions, held steady at 14.2% through the end of 2025. On the Social Security front, beneficiaries are set for a 2.8% cost-of-living adjustment (COLA) in 2026. This will increase the average monthly retirement benefit by approximately $56, to an estimated $2,071. Achieving the maximum possible Social Security payout in 2026, which is $5,251 per month, requires meeting specific criteria. A person must have paid the maximum in Social Security taxes for 35 years and waited to claim their benefits until age 70. [cite: 6,
