A record 769,000 Americans now have $1 million in their 401(k). Here’s how much they save

America has a record number of 401(k) millionaires, but the figure tells only part of the retirement story. Fidelity counted 769,000 people with at least $1 million in workplace accounts at the end of June, 115,000 more than three months earlier. A 14.9% rise in the S&P 500 helped lift balances after a 7% first-quarter fall. Yet the typical Fidelity account held just $35,800, against an average of $155,800.

The millionaires were generally older, had saved for 25 years and put away 25.8% of pay, including employer contributions. IRA millionaires also rose to 684,140.

US 401(k) millionaires hit a record, but most savers lag behind

The headline number hides a wide gap. The average 401(k) balance at Fidelity was $155,800 at the end of June. The median was $35,800. The two figures mean different things. The median is the middle point: half of savers have less than $35,800, and half have more. The average is much higher because a smaller group of very large accounts pulls it up.


The jump in millionaires came after a weak start to the year. In the first quarter, the S&P 500 fell about 7%. The war in Iran and rising oil prices raised fears about inflation and a slowing economy.

Stocks recovered in the second quarter. The S&P 500 gained 14.9%, its strongest quarterly gain since 2020. Fidelity’s data shows that rebound helped lift retirement balances.

Individual retirement accounts, or IRAs, which people open on their own outside work, followed the same pattern. Fidelity counted 684,140 IRA millionaires at the end of June, up from 571,622 in March. The average IRA balance reached $144,523, a 10% rise from the previous quarter.

What the 401(k) millionaires have in common

Fidelity’s numbers point to steady saving over a long period. The average 401(k) millionaire was 58 years old and had been saving for 25 years. These savers also put in far more than most people. Their average personal savings rate was 17.3%. With employer contributions added, it came to 25.8%.

The typical participant saves less. The average employee contribution hit a record 9.6% in the second quarter, and employers added 4.8%. That makes a combined 14.4%, just under the 15% Fidelity recommends.

Many people are using employer matches. An employer match is money the company adds when a worker contributes. Fidelity found that 81.2% of participants put in enough to get their full match, and 12.1% raised their contribution rate during the quarter. The average 401(k) balance is also 75% higher than it was ten years ago, which reflects both years of contributions and investment growth.

Gen Xers, born between 1965 and 1980, made up 62% of 401(k) millionaires. Baby boomers, born between 1946 and 1964, made up about 31%. Millennials, born between 1981 and 1996, were 6%. The group leans heavily towards people who have had decades to save.

Sharon Brovelli, president of Workplace Investing at Fidelity Investments, said in a press release that record balances, strong saving habits and well-designed plans tell an encouraging story. She added that workers are making their financial future a priority and using benefits like employer matches.

The same report shows another side. In the second quarter, 19.5% of savers had an outstanding 401(k) loan, up from 19.2% at the end of the first quarter. A 401(k) loan means borrowing from your own account and paying it back over time.

These are early withdrawals taken to cover urgent financial needs. In the second quarter, 3% of savers took one, compared with 2.6% a year earlier.