Fidelity reports record 401(k) balances and rising millionaire counts

401(k) balances retirement savings stock market financial stress retirement millionaires

Retirement account balances in the United States reached record highs during the second quarter, driven by strong stock market performance and consistent savings. Fidelity Investments reported that the average 401(k) balance rose 13.1% year-over-year to $155,800, while average individual retirement account (IRA) balances increased 10% to $144,523.

The surge in market value has also led to a record number of 401(k) millionaires. The number of accounts managed by Fidelity with balances of at least $1 million rose 19% between the first and second quarters, reaching 769,000. This represents approximately 3% of the company’s 25.8 million 401(k) accounts.

Despite these gains, financial data indicates rising stress among workers. The share of employees with outstanding 401(k) loans increased to 19.5% year-over-year, and hardship withdrawals rose to 3%. Experts attribute the increased use of retirement funds to persistent inflation and the rising costs of essentials such as housing, groceries, utilities, and gasoline.

Sources

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