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

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The number of 401(k) plan participants with balances of $1 million or more rose to a record high at the end of June, according to new findings published by Fidelity Investments.

There were about 497,000 so-called 401(k) «millionaires» during the second quarter, the data shows. That marks a 2.5% increase from the previous quarter and is the third-straight quarter of retirement savings growth.

Among those accounts, the average balance hit $1,595,200, up from $1,581,000 at the end of March.

THE 'MAGIC NUMBER' TO RETIRE COMFORTABLY HITS NEW ALL-TIME HIGH

There were about 497,000 so-called 401(k) «millionaires» during the second quarter, according to Fidelity data. (iStock / iStock)

«Although increases were modest, retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter, when contribution levels and average account balances reached record highs,» Sharon Brovelli, president of workplace investing at Fidelity, said in a statement.

Despite the increase, the typical account balance is still nowhere near the $1.46 million figure that Americans believe they need to retire comfortably.

Fidelity data shows that the average balance in an employer-sponsored retirement contribution plan rose to $127,100, a 1% increase from the start of the year and a 13% jump from the year-ago period. The median account balance was $55,500. 

AMERICANS ARE WORRIED ABOUT OUTLIVING THEIR RETIREMENT SAVINGS

On average, Americans are putting about 14.2% of their income toward savings. Retirement experts recommend that at least 15% of your income goes toward savings. 

Consumers are grappling with a