Americans boost retirement savings despite market volatility

[UNITED STATES] Faced with a jittery market and a swirl of global uncertainty, many American retirement savers didn’t flinch. Rather than pulling funds or cutting back contributions, they stayed the course—an approach that, in hindsight, proved rewarding. Their choice wasn’t merely a display of discipline. It points to something deeper: a quiet evolution in how individuals approach long-term investing. Yes, financial literacy seems to be improving. But more telling is the growing resolve to endure short-term volatility without abandoning long-term goals. Could this signal a broader behavioral shift? If so, it may redefine how US households prepare for financial shocks in the years ahead.

Key Takeaways

1. Savings hit a new milestone
In the first quarter of 2025, the average 401(k) contribution rate climbed to a record 14.3%, fueled by both employee and employer inputs.

2. Workers are stepping up
Employees alone contributed an average of 9.5%, while employers added 4.8%—bringing savers within striking distance of Fidelity’s long-standing 15% benchmark.

3. Staying invested paid off
Investors who held their positions through early-year volatility saw solid returns, with the S&P 500 climbing more than 6% since March and posting its strongest May in 35 years.

4. Behavior backed by scale
These insights aren’t anecdotal—Fidelity analyzed data from 17.3 million retirement accounts, including IRAs, 401(k)s, and 403(b)s, as of March 31.

5. Market timing didn’t work
Switching to cash during drawdowns—even while maintaining contributions—delivered weaker outcomes than simply riding out the turbulence with a balanced portfolio.

Comparative Insight

American savers have long shown a tendency to retreat at the first signs of market stress. During turbulent periods, many have historically scaled back contributions or shifted into lower-risk assets—moves driven more by emotion than strategy. The 2008 financial crisis made that clear, as did the early months of 2020, when COVID-19 panic sparked a wave of exits from equities. These reactions, while understandable, often came at the cost of long-term returns.

This time, the story appears to be changing. Even as inflation squeezed budgets, trade tensions flared, and headlines churned with political noise, American savers stayed put. Across the Pacific, retail investors in countries like South Korea and Japan reacted quite differently—pivoting quickly between trades, often chasing short-term gains. Europe, by contrast, operates under a different paradigm entirely; with many workers relying heavily on state pension systems, individual retirement contributions remain far less common. That divergence makes the US data all the more revealing—it captures not just market response, but a shift in consumer confidence and investor behavior at the household level.

Fidelity’s findings also point to growing financial sophistication among US workers. The proximity to the 15% benchmark suggests savers are not only earning more but also prioritizing long-term planning over short-term reactions.

What’s Next

A pattern of steady retirement saving—even amid volatility—may point to a broader rethink of how Americans approach market risk. While uncertainty remains a fixture of the economic landscape, from Fed policy ambiguity to geopolitical flashpoints, downturns are no longer prompting the same instinct to pull back. If this newfound discipline holds, household wealth in the US could weather future shocks more gracefully than in past cycles.

Employers, for their part, might view rising contribution rates as validation of their matching schemes—not just as a perk, but as a lever for engagement and retention. And for policymakers, the trend raises an opportunity: deepen tax incentives or expand access to financial education to build on this growing momentum.

What It Means

What we’re seeing is a quiet evolution in American investing behavior. Rather than reacting impulsively to headlines or short-term dips, more workers appear to be embracing the long-term logic of steady contributions and diversified portfolios. That signals a maturing financial culture—one less driven by panic and more anchored in planning.

Of course, this is not universal. Many households remain under-saved or lack access to employer-sponsored plans. But for the 17 million-plus accounts Fidelity reviewed, the message is clear: consistency wins. In a world increasingly defined by shocks and volatility, that kind of discipline may prove one of the most valuable financial assets of all.