Retirement account balances, which experienced a dip at the start of the year due to market fluctuations, have rebounded in the second quarter, as reported by Fidelity Investments, the leading provider of 401(k) plans in the U.S.

The average 401(k) balance increased by 8% from last year, reaching an unprecedented $137,800, according to the company. Additionally, individual retirement account balances rose by 5% year-over-year, coming in at $131,366.

The rebound in account balances is quite significant. Fidelity noted that there are now 595,000 401(k) accounts holding over $1 million, marking a 16% increase since the first quarter. Meanwhile, the number of IRA millionaires also saw a rise of 16%, reaching a new total of 501,481.

Mike Shamrell, Vice President at Fidelity, highlighted that positive savings habits played a crucial role in achieving these results. Despite the rocky market, a large number of individuals continued to contribute to their retirement savings. The average contribution rate for 401(k) plans, combining both employee and employer contributions, remained steady at 14.2%, while Fidelity’s savings hit 15%.

The U.S. market faced pressure after the White House announced targeted tariffs in early April, leading to some notably poor trading days for the S&P 500. However, the market managed to recover. Shamrell noted that those who remained committed to their savings strategy, maintaining their contributions and not overhauling their asset allocations, benefited from the subsequent market recovery.

As of Wednesday’s close, the S&P 500 had seen a rise of approximately 10% year-to-date, with the NASDAQ gaining over 11% and the Dow Jones industrial average increasing about 6%.

Tim Maurer, a certified financial planner at SignatureFD in Atlanta, emphasized the importance of offering varied services to clients. He stated, “There’s a positive return rate in the market,” adding that asset classes showing positive returns are likely to reach new highs regularly.