In the first quarter of 2026, average 401(k) balances saw a 4% decline, falling to $141,000, largely due to market instability driven by geopolitical events such as U.S. air strikes and the ongoing Iran war, as reported by Fidelity Investments. Despite this downturn, total retirement savings rates remained strong at 14.4%, nearing Fidelity's recommended 15% target, with employer contributions reaching a record $2,080. The number of 401(k) millionaires decreased by 3% to 645,000, though still up 26% year-over-year. Concurrently, the share of workers with outstanding 401(k) loans increased to 19.2%, with the average new loan amount at $8,420, often taken due to a lack of emergency savings. Roth 401(k) plans, offering tax-free withdrawals in retirement, also gained popularity, particularly among Gen Z workers.