Money Research Collective’s editorial team solely created this content. Opinions are their own, but compensation and in-depth research determine where and how companies may appear. Many featured companies advertise with us. How we make money.
The Number of 401(k) Millionaires Hits a Record High
By Liliana Hall MONEY RESEARCH COLLECTIVE
The number of 401(k) millionaires jumped by 115,000 in three months. But the typical retirement saver still has a long way to go.
More than 100,000 people joined the 401(k) millionaire club from March to June.
A record 769,000 savers had at least $1 million in their workplace retirement accounts at the end of June — 115,000 more than just three months earlier, according to Fidelity’s latest retirement analysis. A Fidelity spokesperson confirmed the figures in an email to Money on Thursday. But $1 million is still far from what most people have saved. The average 401(k) balance was $155,800 at the end of June, while the median balance was just $35,800.
Must Read
- 10 Smart Ways Seniors Are Earning Extra Money
- These Are the Best Gold & Silver Companies of 2026 — Compare Now
- Up to 4% APY: Explore SoFi's Savings and Checking Accounts
The record came after a rough first quarter for the stock market. The S&P 500 fell roughly 7% as the war in Iran and surging oil prices fueled concerns about inflation and a slowing economy. Stocks rebounded in the second quarter, with the S&P 500 rising 14.9% — its strongest quarterly gain since 2020.
The millionaire ranks grew outside workplace plans, too. Fidelity reported 684,140 IRA millionaires at the end of June, up from 571,622 at the end of March. The average IRA balance reached $144,523, up 10% from the previous quarter.
Must Read
- Retirees Are Doing These 10 Things to Add to Their Monthly Income
- Your Social Security Number Isn’t 'Suspended' — That Phone Call Is Probably a Scam
- Warren Buffett on Market Volatility — and 3 Ways You Can Take Advantage
What it takes to become a 401(k) millionaire
The stock market’s strong second quarter helped lift retirement balances, but Fidelity’s latest data also shows that consistently saving — and starting early enough to give those savings time to grow — plays a major role in reaching $1 million.
The average employee contribution rate reached a record 9.6% in the second quarter, while employer contributions averaged another 4.8%, bringing the average savings rate to 14.4%. That’s just shy of Fidelity’s recommended 15% savings rate.
More than 8 in 10 participants (81.2%) contributed enough to receive their full employer match, and 12.1% increased their contribution rate during the quarter.
Fidelity’s average 401(k) balance is now 75% higher than it was a decade ago, illustrating the role that years of contributions and investment growth can play in building retirement wealth. The average 401(k) millionaire was 58 years old and had been saving for 25 years. [moved this up]
These savers were also contributing considerably more of their own money than the average participant. The average individual savings rate among 401(k) millionaires was 17.3%. When employer contributions were included, the average savings rate rose to 25.8%.
Gen Xers — those born between 1965 and 1980 — made up the largest share of the 401(k) millionaire population, accounting for 62% of the group. Baby boomers (born between 1946 and 1964) represented roughly 31%, while millennials (born between 1981 and 1996) made up 6%.
Still, the record number of millionaires doesn’t mean every retirement saver is on track to reach that milestone. Nearly 1 in 5 retirement savers, or 19.5%, had an outstanding 401(k) loan in the second quarter, up from 19.2% at the end of the first. Hardship withdrawals were also up, with 3% of retirement savers taking one in the second quarter, compared with 2.6% a year earlier.
“The combination of record account balances, strong savings behaviors and effective plan design tells an encouraging story about how Americans are approaching retirement,” Sharon Brovelli, president of Workplace Investing at Fidelity Investments, said in a press release.
“Workers continue to prioritize their financial future, saving at record levels and taking advantage of valuable benefits such as employer matching contributions. These steps can play a powerful role in strengthening long-term retirement readiness.”
Liliana Hall is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Passionate about accessibility and financial literacy, she’s dedicated to helping readers navigate the complexities of money management and feel empowered to make informed decisions about their financial futures. Previously, Liliana covered all angles of personal finance as a writer and editor at CreditCards.com, Bankrate and CNET. Before she ever wrote about money, she worked in a handful of newsrooms across Austin, Texas, covering everything from the Texas Legislature to SXSW and the 2019 Men’s NCAA Swimming and Diving Championships. Her work has been featured in The Daily Texan, Austin Chronicle and KUT. A Texas native, Liliana graduated from the University of Texas at Austin with a bachelor’s degree in Journalism. When she’s offline, you can probably find her paddle boarding on Lady Bird Lake, riding her moped around town or reading for her book club.