Fidelity just dropped their Q1 2025 retirement analysis, and while average balances for 401(k), 403(b), and IRAs dipped slightly due to market volatility, there’s some good news buried under the market noise: participants didn’t panic. Contribution rates remained strong, with the total 401(k) savings rate hitting a record 14.3%, and 403(b) plans holding steady at 11.8%.
Behind the glossy numbers and upbeat quotes, there are real takeaways. The market will always swing. It’s how participants — and more importantly, fiduciaries — respond that makes the difference. Staying the course on contributions? Great. But we still have to ask: are fees reasonable? Are fund options prudent? Are participants being educated and supported in volatile times?
The report highlights that most participants didn’t veer off course in Q1 — and that’s worth acknowledging. But let’s not pat ourselves on the back too hard. A high savings rate is just one part of the equation. Without strong plan design, effective education, and diligent fiduciary oversight, savings can be undercut by high fees, poor investments, or neglect.
As always, plan sponsors have a duty — not just to check the box, but to constantly evaluate whether their plan is truly working for participants. Market swings are inevitable. Fiduciary responsibility isn’t.
If you’re a plan sponsor, the message is clear — keep your eyes on participant outcomes, not just account balances.
