Fidelity: 769,000 savers have $1 million or more in their 401(k)

In the first half of the year, retirement savers experienced significant gains, particularly in their 401(k) accounts. Fidelity Investments reported that the average 401(k) balance grew 10.5% in the second quarter, marking the strongest quarterly growth since December 2020. This increase was largely driven by a robust stock market, with the S&P 500 and Nasdaq Composite Index both posting impressive gains.

As a result, the number of 401(k) millionaires surged nearly 30% from the previous quarter, reaching 769,000 at the end of June. Gen X individuals account for the majority of this group, followed by boomers and millennials. These savers have employed disciplined saving habits for an average of 25 years, resulting in an average savings rate of 17.3%.

Fidelity's data, based on 27,300 defined-contribution plans, also indicates that 19.5% of savers had an outstanding 401(k) loan during the second quarter, up from 19.2% at the end of March.