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401(k) Balances Were down 23% in 2022, but Are Now Rebounding

Although the average retirement account balance rose in the fourth quarter of last year, balances ended the year down from a year earlier – losing nearly one-quarter of their value, according to a new Fidelity report.

By Alan Goforth | March 13, 2023 at 10:19 AM
Stock image: 401(k) puzzle piece fitting into puzzle

Although the average 401(k) balance rose in the fourth quarter of last year, balances ended 2022 down 23 percent from 2021, says a new report from Fidelity Investments. In Q4/2021, the average 401(k) retirement account balance was $130,700, and in Q4/2022, it was $103,900, after rebounding from $97,200 in Q3/2022, according to Fidelity.

However, despite record inflation last year and a possible recession on the horizon, U.S. investors remain committed to their retirement objectives, according to Fidelity. “Given all the stresses in the world today, such as natural disasters and geopolitical events, Americans continue to confront challenging times in our economy,” said Kevin Barry, president of workplace investing at Fidelity Investments.

“Fortunately, the data shows that retirement savers understand the importance of saving for the long term, despite market shifts,” he said. “We are encouraged to see people look past the current volatility and continue to make smart choices for their future.”

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