Market Volatility Didn’t Slow Retirement Savers in the First Quarter

Market volatility affected retirement accounts in the first quarter, but that hasn’t slowed down savers.

According to Fidelity’s quarterly analysis of savings behaviors and account balances, the average retirement account balance was down in the first quarter of the year, regardless of type.

The average IRA held $121,983 in the first quarter, down 4% from the quarter before and 1% from the same time last year. The average 401(k) balance was $127,100, off 3% from the prior quarter but up 1% from the same time last year. And 403(b) accounts held $115,424 on average, down 2% from the fourth quarter but up 2% from the same time last year.

The slip in retirement account value reflects market trends, as the S&P 500 was down more than 4% from the fourth quarter of 2024 due to increased economic uncertainty.

Market Volatility Tied to Tariff Uncertainty

Fidelity attributed most of the losses to market swings caused by investors reacting to tariff policies and economic projections. President Donald Trump’s tariffs have roiled stocks and bonds, two popular holdings for retirement savers.

Because of the volatility, about 22% of 401(k) participants and around 18% of 403(b) participants made a change to their contribution rate in the first quarter of 2025. Of those, the report showed that almost 30% of participants in both accounts reported moving their savings to more conservative investments (like bonds or certificates of deposit).

Despite the volatility in their retirement accounts, savers actually put more into them in the latest period. According to Fidelity, 401(k) savings rates went up and IRA contributions increased, as well.