769,000 401(k) Savers Reach Millionaire Status — SkimNews
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- Fidelity reported 769,000 401(k)-created millionaires in the second quarter, a record among its retirement platform participants.
- 401(k) savers maintained a 14.4% total savings rate for a second consecutive record quarter, comprising a record 9.6% employee contribution rate and 4.8% employer contribution rate.
- Fidelity plan participants increased their contribution rates in 12.1% of accounts, while 81% saved enough to receive their employers’ full matching contribution.
- S&P 500 gained 15.2% in the second quarter, its strongest quarterly performance since 2020’s second quarter, helping lift retirement-account balances.
- Average 401(k) balances rose 10.5% quarter over quarter to $155,800—the strongest growth since late 2020—while the median balance was $35,800.
- Retirement savers changed their asset allocation during the quarter at a rate of just 5.5%, remaining focused on long-term goals despite economic concerns.
- Fidelity’s retirement platform recorded outstanding loans for 19.5% of participants, while hardship withdrawals rose to 3% from 2.6% a year earlier.
Why it matters: Long-term investors benefited from strong contribution habits and a 15.2% S&P 500 quarterly gain, but the wealth milestone is not evenly shared: the $155,800 average 401(k) balance dwarfed the $35,800 median. Higher loans and withdrawals show that financial pressure remains material.
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