"Record Number of Americans Reach 401(k) Millionaire Status"

The number of Americans with $1 million or more saved in their 401(k) accounts increased by 20% from September to December, reaching 422,000 individuals by the end of 2023, according to Fidelity Investments. The average account balances for retirement savers also reached a two-year high, with more than a third of workers increasing their retirement savings contribution rate in 2023. The surge in balances was attributed to improving market conditions and increased contributions, with 78% of 401(k) savers contributing enough to secure full matching contributions from their employers. The average savings tenure of 401(k) millionaires is 26 years, emphasizing the importance of consistent long-term contributions, and nearly half of these millionaires are boomers. Experts advise those nearing retirement to consider rebalancing their portfolios and moving some savings into short-term vehicles to prepare for potential market fluctuations.