401(k) savers are setting records. How to catch up if you're behind.

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Despite financial pressures, workers remain committed to their retirement goals, with many boosting their contribution rates — and watching their savings grow.

According to Fidelity Investments' latest quarterly analysis, 769,000 retirement savers have a million dollars or more in their 401(k). Average 401(k) balances grew 10.5% in the second quarter, marking their strongest quarterly growth since the fourth quarter of 2020, thanks partly to stock market gains.

The total average savings rate also held at record levels for the second consecutive quarter, remaining at 14.4% for 401(k) savers and 12% for 403(b) participants.

At the same time, Fidelity data shows more savers tapped their accounts for cash to cover expenses: 19.5% of retirement savers had an outstanding 401(k) loan in the second quarter, up from 19.2% at the end of the first quarter. The share of workers who took a hardship withdrawal increased year over year to 3%.

The latest inflation data shows continued pressure on household budgets, with costs rising across the board, from gas to groceries. The Consumer Price Index showed some prices decreasing month over month in July. However, the index was still 3.4% higher year over year.

Still, employees have been contributing an average of 9.6% of their pay to their 401(k) accounts, a record high, while employers contributed an average 4.8%.

In the second quarter, 12.1% of 401(k) participants increased their contribution rate, and 81.2% contributed enough to receive their employer's full matching contribution.

IRA savers increased contributions by 36% from the second quarter of last year.

Here's a look at where the average retirement savings balances stand:

Millennials' average 401(k) balances increased 14.2% during the quarter and 26.1% year over year, according to the latest data, and millennials and Gen X employees were the highest contributors to traditional IRA contributions, both averaging approximately $6,000.

If your account balance doesn't align with the average account balance, that doesn't necessarily mean you're behind — it's common for retirement account balances to vary across generations.

Separate figures from Fidelity found that the average 401(k) and IRA balances for each generation range from $8,000 to $286,700.

It's also important to consider how your retirement savings goals, external sources of income, timeline, and other factors will affect your retirement account target and your progress toward it at this stage.

"Someone earning $75,000 with a pension, modest lifestyle, and plans to work until 70 likely needs a very different amount than someone earning $300,000, spending $200,000 a year, and wanting to retire at 55," said Brian Seymour, CFP® and founder of Prosperitage Wealth.

How to catch up on your retirement savings if you're behind

If you're looking at your account balance and think you may be behind, there are several ways you can work to boost your retirement savings.

Increase your contributions enough to max out your employer's match

If your employer offers to match your retirement contributions, it makes sense to increase your contributions enough to get the full match.

Say your employer offers a 3% match on retirement contributions. Aiming to save even just 3% of your income will get you up to 6% of your annual income, and you can work toward a larger percentage as your income grows.

Take advantage of catch-up contributions

If you're 50 or older, you're eligible to make catch-up contributions to certain retirement accounts. This means you can contribute more than the standard annual limits, giving your accounts an added boost.

For 2026, savers 50 and older with 401(k), 403(b), 457 plans, and the federal government's Thrift Savings Plan can make catch-up contributions up to $8,000. Those who are 60 to 63 can contribute an additional $11,250 in 2026 in lieu of the $8,000, if your plan allows.

Boosting your income gives you the ability to increase your retirement contributions, which, in turn, will increase your retirement savings and help you earn more money in interest on that balance.

If there aren't any current opportunities to increase your income at your current job through a promotion or raise, you might consider taking on a side hustle or exploring higher-paying roles.

"Review your investment strategy, debt, taxes, Social Security strategy, and retirement timeline. Sometimes the solution isn't one giant change, but finding several smaller opportunities across the entire financial picture," Seymour said.

"The most important thing is to stop waiting for the 'perfect' time to start. The best financial plan is like the best workout plan or diet — it's the strategy that you actually implement and stick with," he said.

What is the average retirement savings by age?

Knowing how much your peers have saved for retirement can help you determine if you're on track with your savings. Take a closer look at average retirement savings by age.

Behind on retirement savings? You have options for catching up. Here are a few strategies to help.

Are you saving enough for retirement? Here's how to tell.

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Average savings by generation: How do boomers, Gen X, millennials, and Gen Z compare?

Each generation faces its own challenges when it comes to saving money. Here’s how much each generation saved last year and how much they have in their savings accounts, on average.

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