Number of 401(k) Millionaires Rises Nearly 10%: Fidelity
This “bodes well” for the generation as members approach their retirement years, according to Fidelity.
“We are continuing to observe a dedication to saving for retirement, with contributions to these vehicles holding steady if not increasing,” Sharon Brovelli, president of workplace investing at Fidelity, said in a statement. “This is meaningful as retirement savers prepare to close out 2024 and establish new budgets and financial goals for the coming year.”
Average 401(k) Savings Rates and Balances
Fidelity’s report shows the average 401(k) savings rate held steady during the quarter at 14.1%. This includes both employee and employer contributions, which are 9.4% and 4.7%, respectively. This rate is just shy of Fidelity’s suggested savings rate of 15%.
The average IRA balance now stands at $129,200, an 18% increase since last year and a 41% increase over the prior decade.
The average 401(k) balance stands at $132,300, which is up 23% since last year and up 48% from a decade ago.
Likewise, 403(b) plans have grown 23% over the past 12 months, reaching an average balance of $119,300. This marks a 68% increase over 10 years.
