403(b) plan participants made strong wealth gains in recent years. Empower Personal Dashboard^TM data reveals that the average 403(b) balance grew 14.6% in the past 24 months, from $109,852 in April 2023 to $125,936 in April 2025.

While 401(k)s are typically viewed as the most common retirement savings plan in the U.S., over 14.5 million American workers in the nonprofit sector currently participate in 403(b) plans —predominantly  in Texas (1.2 million), California (1.7 million), and Florida (994K).¹

But how does investment growth in 403(b)s compare to 401(k)s? And how does the average 403(b) balance vary by age?

Average 403(b) growth in recent years

Here’s how the average 403(b) and 401(k) balances have changed since 2023:

Anonymized data from the Empower Personal Dashboard data April 1, 2023, vs April 1, 2025

The average 403(b) balance has grown almost 15% in the past 2 years — a slightly higher rate than the 13% increase in the average 401(k) balance.

Average 403(b) balance by age

Here’s the average 403(b) balance by age, according to Empower Personal Dashboard data:

Anonymized data from the Empower Personal Dashboard data as of April 1, 2025.

Empower data shows that 70% of Americans contribute to a retirement plan like a 403(b), though contributions vary by generation: Only 47% of Gen Z say they save in a retirement plan, compared to 75% of Millennials and 76% of Gen X.

2025 changes to the 403(b)

In January, the IRS issued proposed regulations addressing one of Secure 2.0’s signature requirements: All newly established 401(k) and 403(b) plans must automatically enroll eligible employees beginning with the 2025 plan year.² In general, unless an employee opts out, a plan must automatically enroll the employee at an initial contribution rate of at least 3% of the employee’s pay and automatically increase the initial contribution rate by one percentage point each year until it reaches at least 10% of pay.

The move could mean an increase in savings for 403(b) plan participants: Automatically enrolling individuals in their employer-sponsored plans has a powerful impact on their participation, contribution, and asset allocation outcomes, according to the National Bureau of Economic Research.³

In 2025, plan holders can contribute up to $23,500 in a 403(b), up from $23,000 in 2024. Employees who are 50 or older can also contribute an additional $7,500 in catch-up contributions.