Fidelity data shows record retirement savings, rising Roth adoption

Retirement savers continued to build momentum in early 2026, even as markets fluctuated, according to the latest quarterly analysis from Fidelity Investments.

The firm reported that total savings rates reached record levels in the first quarter.

Combined employer and employee contributions for 401(k) savers hit 14.4%, approaching Fidelity’s suggested 15% target. For 403(b) participants, the total savings rate reached 12%.

IRA activity also surged. Contributions rose 29% year-over-year, while the number of Fidelity IRA account holders making contributions increased 28%.

Although average account balances dipped slightly quarter-over-quarter amid volatility, longer-term trends remained positive.

Compared with Q1 2025, average balances rose 11% for 401(k)s, 13% for 403(b)s and 7% for IRAs.

Employer contributions also set a record, averaging $2,080 per participant in the quarter, up from $2,020 a year earlier.

Nearly one in five participants — 18% — increased their savings rate, largely through automatic escalation features. Only 5.7% changed asset allocations, down from 6% a year earlier.

“Retirement savers started the year strong with record-high savings rates and contributions, reflecting the long-term approach they’re taking with retirement preparedness,“ said Sharon Brovelli, president of workplace investing at Fidelity Investments. “While it can be tempting to make changes to retirement savings during market volatility, it is positive to see participants stay the course with their contributions – an approach that will ultimately strengthen outcomes as retirement nears.”

Roth growth accelerates as investors seek tax flexibility

Roth retirement vehicles continued to gain traction, accounting for 67% of IRA contributions in the quarter.

Roth conversion activity rose 41% year-over-year, a product of growing interest in tax diversification strategies.

“We’re encouraged to see investors creating thoughtful, long-term strategies to build their wealth,“ said Bob Mascialino, president of wealth at Fidelity Investments. ”Choices like increasing contributions to Roth accounts reflect a focus on flexibility, tax efficiency, and confidence in planning for the future – principles that are essential to navigating financial complexity and building lasting financial security.”

Equity compensation strengthens retention

Fidelity’s stock plan research highlighted the expanding role of equity compensation in workforce financial wellness. The data found that 43% of participants became first-time investors through company stock plans.

In addition, 73% of employees said they plan to rely on equity compensation proceeds for long-term investing.

About 56% said stock benefits make them more likely to remain with an employer, while 65% said equity compensation is an important factor in accepting a job offer.

Reverse mortgage demand shifts toward private-label market

Beyond traditional retirement savings gains and workplace benefit trends, housing equity products are also seeing a shift, according to new analysis from New View Advisors.

The data shows rising demand for proprietary reverse mortgages alongside stagnation in federally insured Home Equity Conversion Mortgages (HECM).

Proprietary reverse mortgage volume reached an estimated $250 million in December 2025, $730 million in the fourth quarter and nearly $2.5 billion for the full year.

By comparison, HECM volume totaled about $292 million in December and roughly $4 billion in 2025.

The data indicates private-label loans accounted for about 30% of originations at the start of 2025, rising to 45% by December.

The shift comes as policymakers and industry groups debate reforms to the HECM program.

The U.S. Department of Housing and Urban Development has issued a request for information on program changes, while stakeholders including the National Reverse Mortgage Lenders Association and Mortgage Bankers Association have proposed lower insurance costs and secondary market reforms to boost demand.

This article was written by Jonathan Delozier and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.