More workers are raiding their 401(k)s as average balances fall, Fidelity says

Financial pressures pushed more savers to tap their retirement accounts in the first part of 2026, new data shows — potentially locking in losses during the early weeks of the Iran war . Amid severe market volatility earlier this year, the average 401(k) balance fell by 4% to $141,000, according to first-quarter data released Thursday from Fidelity Investments , the nation's largest provider of 401(k) savings plans. The average individual retirement account balance was also down 4% to $131,380 in the first quarter, Fidelity found. The drop was due to the outbreak of the Iran war, which sparked a stock selloff, according to Kirsten Hunter Peterson, vice president of workplace thought leadership at Fidelity Investments. "Luckily, a couple of months later, we are trending in a much better direction," she said, referring to recent market highs .