The number of people with 401(k) balances of at least $1 million has reached an all-time high, driven by a strong stock market and significant contributions from employees.
Fidelity Investments reported a 19% increase in millionaire retirement accounts from the first to the second quarter, totaling 769,000 such accounts. This surge seems to stem from a bullish stock market coupled with employees saving at unprecedented levels, even as they face challenges like rising grocery prices and hefty utility bills, according to the report.
During the three-month period ending June 30, the S&P 500 rose by 15%, encouraging more workers to actively save for retirement. The average contribution rate for 401(k) plans also reached a record high of 9.6% in the second quarter, highlighting the commitment many have towards their future.
Approximately 3% of Fidelity’s 25.8 million 401(k) accounts now boast balances of $1 million or more.
Michael Shamrell, Fidelity’s vice president of thought leadership, expressed optimism over these trends. “It’s encouraging to see consistent savings rates despite various challenges,” he noted, emphasizing that most people aren’t cutting back on their contributions.
The significant gains among these retirement millionaires are predominantly attributed to older Americans who have diligently saved and invested over many years. However, many individuals may still feel that hitting the million-dollar mark seems far-fetched.
As of June 30, the average balance for a Fidelity 401(k) was about $155,800. In contrast, average 403(b) and IRA balances were around $145,000 and $144,523, respectively.
A 2026 survey from financial services company NFP found that 69% of employees are not confident about retiring comfortably, with 72% believing their savings are inadequate. About 46% of surveyed working adults reported either de-prioritizing saving for retirement or being unable to save at all, as essential expenses like housing, transportation, and food take precedence.
Shamrell cautioned against a one-size-fits-all approach to retirement savings, suggesting that individual needs vary significantly. Some might need more, while others may be just fine with less.
