Sturdy stock market mints a record number of 401(k) millionaires
Summary
The number of 401(k) retirement accounts with at least $1 million has reached a record 769,000 according to Fidelity Investments. This increase was driven by a strong stock market and high employee savings rates, although most Americans still worry about their retirement finances.Key Facts
- There are now 769,000 401(k) accounts with $1 million or more, up 19% from the previous quarter.
- About 3% of Fidelity’s 25.8 million 401(k) accounts have balances of at least $1 million.
- Many 401(k) millionaires are older workers who have saved steadily for many years.
- The average employee contribution rate to 401(k) plans remained a record high of 9.6% in the second quarter.
- The stock market, measured by the S&P 500, rose 15% in the second quarter and 20% over the last year.
- Despite rising balances, 72% of workers say they are behind on their retirement savings.
- The average 401(k) balance was $155,800 as of June 30, much lower than $1 million.
- Concerns about inflation, living costs, and global issues still affect workers’ retirement confidence.
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