Big Gains in 401(k)s: Is It Time to Re‑think Your Plan?

Many people notice their retirement accounts have grown a lot after years of market ups and downs. In late 2025, the average balance in a 401(k) hit $146, 400, up more than ten percent from the same time last year. The average IRA also climbed to $137, 095. This is good news for workers who save for the future while juggling today’s bills. But having a high balance does not mean you are automatically set for retirement. It can be a good moment to examine what’s inside your account and whether your strategy still fits your goals. Younger savers, in particular, should check if they are putting enough into long‑term growth and not just staying safe. People who are 59½ or older face a different set of choices. They can move money from their 401(k) into an IRA without leaving their job. This move offers more investment options, lower fees and the chance to tailor a plan that matches their risk tolerance. It also lets them use tools like managed portfolios or structured notes to balance growth and protection.Most workers start with a “set‑it‑and‑forget” plan, such as a target‑date fund. These funds automatically shift from stocks to bonds as you age, but they ignore personal circumstances and limit how much you can invest. If your account has grown a lot, it might be time to pull some of those gains and look at other investments. Beyond investing, retirement planning must cover health care and long‑term care. People live longer, so they may need money for many years of retirement. Health costs can rise quickly, and insurance can help lock in lower rates now. Life insurance with living benefits or dedicated long‑term care policies give extra security and can pay for in‑home care if needed. A balanced plan that includes investing, income planning and health protection gives the best chance for a worry‑free retirement. Even if markets fall, having control over where your money goes can keep you on track.