401(k) Millionaires Soar as Retirement Balances Rise
Fidelity Investments reported a double-digit increase in the number of retirement millionaires in the second quarter, with 401(k) millionaires rising by 10% and IRA millionaires climbing by 13%. The average balances in retirement accounts also saw growth, with IRAs increasing by 5% to $113,800, 401(k) accounts rising by 4% to $112,400, and 403(b) accounts spiking by 5% to $102,400. The youngest generation, Generation Z, experienced the largest increase in 401(k) balances at 66%, while baby boomers had the highest total savings rate at 16.6%. Fidelity attributed the growth to steady contributions and positive market conditions.