Fact-checking Trump's claims about 401(k) gains during his second term

President Donald Trump has frequently highlighted the stock market's performance during his presidency, stating that 401(k) retirement plan balances have increased significantly, making Americans wealthier. During a speech in Pennsylvania, Trump claimed a typical 401(k) had gained almost $30,000 in 13 months. Similar claims were made earlier in the year. While the stock market has indeed risen under Trump, the $30,000 figure is not supported by data. A comprehensive analysis of 401(k) balances shows an increase closer to one-third of that amount. Furthermore, a growing proportion of Americans are withdrawing funds from their 401(k) accounts before retirement to manage unexpected financial difficulties. The White House did not provide supporting evidence for Trump's specific claim, though a spokesperson noted that equity markets had reached multiple all-time highs during his term. The Standard & Poor's 500 index, a broad market indicator, showed gains of approximately 13% between Trump's second inauguration and his State of the Union address where the $30,000 figure was first mentioned, and about 24% by the time of his Pennsylvania speech. Determining a 'typical' 401(k) account is complex, as balances vary widely based on income, age, company policies, and investment choices. Fidelity Investments, a major operator of 401(k) plans, offers data from over 26,000 corporate plans covering roughly 25 million participants. Analyzing Fidelity's data for the periods ending December 31, 2024, and March 31, 2026, provides insight into 401(k) balance growth during the initial 15 months of Trump's second term. Averaging the gains across 11 age ranges provided by Fidelity, from 20 to 70 and older, resulted in an average increase of $9,454.

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The typical 401(k), as you know, is up almost $30,000 in … 13 months.