A healthy retirement account can make anyone feel like a financial genius. President Donald Trump is leaning into that feeling, telling Americans their 401(k)s are soaring under his watch.
At an Oct. 29 campaign rally in Rock Hill, South Carolina, Trump used the stock market to make his economic case ahead of the midterm elections. He also landed a punchline about husbands suddenly earning their wives' respect thanks to investment returns.
"I've had wives tell me that they love their husband again," Trump said. "My husband is a great investor. He's up 67%."
"That's me that did it!" he added.
It's a great line. But while retirement balances have climbed, the latest available data offers a more detailed picture of how much Americans are actually gaining.
What the Numbers Show
The broader stock market has delivered solid returns, but Trump's 67% claim is not representative of the overall market's performance.
At the time of Trump's remarks, the S&P 500 had delivered a 13.35% total return over the previous 12 months, including reinvested dividends, while gaining approximately 12.8% year to date.
Individual 401(k) returns can vary considerably depending on how accounts are invested. Someone heavily invested in technology stocks could see a very different result from someone holding a conservative mix of bonds and diversified funds.
Fidelity's quarterly retirement analysis of the second quarter of 2026 found that the average 401(k) balance reached $155,800, up 13% over the prior-year quarter.
Vanguard's latest annual retirement report also showed improvement. The average account balance among its participants reached $167,970 in 2025, up 13% from 2024. The median balance was $44,115, a 16% increase.
The difference between those figures is worth noting. The median represents the midpoint, meaning half of participants had more and half had less. Averages can be pulled higher by a relatively small number of accounts with substantial savings.
401(k) Limits Also Increased
Retirement savers also have more room to contribute in 2026.
The IRS increased the annual 401(k) contribution limit to $24,500 for 2026, up from $23,500 in 2025. That's an additional $1,000 workers can contribute through regular salary deferrals.
Workers age 50 and older can contribute another $8,000 in catch-up contributions, compared with $7,500 in 2025.
There's also a higher catch-up allowance for workers ages 60 through 63. They can contribute an additional $11,250 in 2026, provided their plans allow it.
Another change affects higher-earning workers. Employees whose prior-year wages from their plan sponsor exceeded $150,000 generally must make catch-up contributions on a Roth basis when their plans offer the feature.
That means those additional contributions are made with after-tax dollars rather than traditional pretax contributions.
Why Retirement Accounts Matter
The latest figures show that retirement balances have improved, but market performance is only part of the equation.
Employee contributions, employer matching, investment choices and the number of years an account has been growing all influence the final balance.
Trump's 67% figure may describe individual accounts or particular investment periods, but it should not be confused with the average return earned by American retirement savers.
For anyone checking their retirement account, the more useful comparison is how their own balances have changed over time, how much they're contributing and whether their investments remain aligned with their retirement goals.
