Fidelity Data Shows 401(k) Savers Who Remain in the Same Plan for Five Years Average $304,200, Compared with $146,400 Overall

New Fidelity figures highlight a sharp split between two sets of 401(k) savers, driven largely by one behavior that has little to do with choosing better funds or earning more money.

Fidelity’s retirement data places two averages side by side. People who stayed in the same employer’s 401(k) plan for five straight years averaged $304,200 at the end of 2025. Across all Fidelity 401(k) savers, the average was $146,400. That leaves a gap of $157,800 and raises a simple question: how much of the difference is tied to simply staying in one plan?

What the Long-Term Saver Figure Represents

Fidelity follows a group of continuous savers who have remained in a 401(k) plan with the same employer for five years without interruption. More than 5.5 million people on the platform fit that description, and their average balance increased 16% from the end of 2024.

The broader figure comes from Fidelity’s fourth-quarter 2025 data, which covers 24.8 million participants in 26,200 corporate plans.

Both numbers are averages, or means. Because a small number of very large accounts can lift an average, the median would better reflect the middle saver. Fidelity does not release a median for its continuous savers, so the typical balance in that group is likely below the headline amount.

Why More Tenured Workers Usually Start Ahead

Part of the difference comes from the profile of these savers. Vanguard’s How America Saves report says income, age and job tenure tend to move together. Workers who stay longer are generally older, earn more, participate more often and contribute more. They have also been saving longer, giving their accounts more time to grow.

Contribution rates across Fidelity’s platform are close to its own target. The average employee contribution rate was 9.5%, while employers contributed 4.7%. Combined, that 14.2% savings rate is near Fidelity’s suggested 15%.

How Staying Put Helps Balances Compound

Remaining in one plan means contributions and employer matching can continue without interruption. In 2025, the average employee contributed $9,080, and the average employer contribution was $4,920. Fidelity also says 88.1% of participants received some employer contribution. Changing jobs can interrupt that flow, and some plans require new hires to wait before they can enroll or receive a match.

Vesting matters too. It is the point at which employer money in the account fully belongs to the worker. Under federal rules, a 401(k) can use a cliff schedule that makes employer contributions fully vested after three years of service. It can also use a graded schedule, starting at 20% after two years and reaching full vesting after six. Leaving early can mean losing part of the match, although employee contributions belong to the worker from the start.

What It Costs to Cash Out

Another way saving gets interrupted is when someone cashes out after leaving a job. IRS guidance says a payout made directly to the worker usually has 20% withheld for income tax. The full amount still counts as a distribution. Anyone under 59½ may also owe an additional 10% tax on whatever is not rolled over within 60 days.

The IRS offers a straightforward example. On a $10,000 distribution, $2,000 is withheld and the worker receives $8,000. If none of it is rolled over, a younger worker would owe an extra $1,000 in tax, in addition to regular income tax.

There is also the lost growth. If $10,000 stayed invested at a 6% average annual return for 30 years, it would grow to about $57,435. That assumes a steady return, and real markets do not move in a straight line.

Ways Job Changers Can Keep the Money Invested

A direct rollover transfers the money straight into a new employer’s plan or an IRA. Under IRS rules, no tax is withheld when the funds go directly to the new plan’s trustee. That keeps the full balance invested, avoids the need to replace withheld money by the deadline, and can help prevent forgotten 401(k)s from lingering at former employers.

Contribution habits are another factor. Some workers restart at a lower rate in a new plan, or delay enrollment altogether. For 2026, the employee deferral limit is $24,500. Workers age 50 and older can add an $8,000 catch-up contribution, and that limit rises to $11,250 for those ages 60 to 63.

Why Continuity Matters Across Jobs

Age, income and tenure help explain part of the spread in Fidelity’s data. Bigger balances also reflect steady contributions, ongoing employer matches and money that remains invested. A rollover allows those savings to move with the worker from job to job, while cashing out at a job change stops the compounding on that money.