The number of 401(k) millionaires hit a new record high

Published On Aug 29, 2024, 9:31 AM

As of the end of June 2024, a record 497,000 401(k) participants in the U.S. have over $1 million in their retirement accounts, according to Fidelity Investments. This marks a 2.5% increase from the previous quarter and continues a trend of growth in retirement savings. The average 401(k) balance for millionaires has also risen to approximately $1.6 million. Despite this increase, many Americans believe they will need at least $1.46 million to retire comfortably, and the average account balance across all employer-sponsored retirement plans is significantly lower at around $127,100, indicating a potential savings gap. Current financial pressures, influenced by high inflation and interest rates, are causing concerns about retirement adequacy for many workers.