A soaring stock market and persistent employee contributions pushed the number of 401(k) millionaires in the United States to an all-time high in the second quarter.
Data from Fidelity Investments shows that the number of 401(k) accounts on its platform holding at least $1 million expanded by 19 percent from the first quarter, reaching a record 769,000 accounts. The jump marks the largest quarterly growth in seven-figure balances since late 2023, according to a report released Thursday.
The surge was fueled by an exceptional period for equities. The S&P 500 gained roughly 15 percent in the second quarter — its best quarterly performance since 2020 — and has risen 20 percent over the last 12 months.
Driven by demand for artificial intelligence, robust corporate earnings and federal tax cuts enacted last year, investor confidence remained resilient despite persistent inflation and elevated geopolitical tensions.
Average account balances across Fidelity’s workplace 401(k)s, 403(b)s and Individual Retirement Accounts touched record levels. About 3 percent of Fidelity’s 25.8 million 401(k) account holders are now millionaires.
open image in galleryDespite persistent cost-of-living pressures, workers maintained historically high savings habits. The average employee 401(k) contribution rate remained steady at a record 9.6 percent in the second quarter.
Michael Shamrell, vice president of thought leadership at Fidelity Investments, told CBS News that most 401(k) millionaires achieved their balances through long-term consistency rather than market timing.
“It’s not that they have reached that — it’s how they did it,” Shamrell said. “What was their behavior? One is just saving for a long time.”
He added that Fidelity avoids framing $1 million as a universal benchmark, noting that individual retirement needs vary significantly.
“We don’t want people to think that, ‘OK, this is what you should aim for, this is what you’re going to need,’ because everybody’s different, and so you know some might need more, some might need less,” Shamrell said.
Speaking to Bloomberg, Shamrell acknowledged the cultural weight of the benchmark.
“That million-dollar figure across American society just still holds a little bit of cachet, whether it’s a million-dollar home or a million-dollar lottery ticket or Who Wants To Be A Millionaire,” Shamrell told the publication. “We’re not saying that a million dollars is the end-all, be-all, and that’s everything you’re going to need.”
open image in galleryDespite the growing tally of millionaires, a seven-figure balance remains out of reach for most American workers. Fidelity reported that the overall average 401(k) balance was $155,800 as of June 30, while average 403(b) and IRA balances hovered near $145,000.
Economic anxiety also continues to weigh on the broader workforce. A recent survey from financial services company NFP revealed that nearly 70 percent of workers doubted they would be able to retire comfortably, with 72 percent indicating they felt behind on their savings goals.
Separate research from the Employee Benefit Research Institute and Greenwald Research found confidence levels regarding retirement readiness at their lowest point since 2017, citing debt, healthcare costs, inflation and concerns over the long-term solvency of Social Security.
The actual purchasing power of $1 million in retirement has also shifted over time. Northwestern Mutual’s 2026 Planning & Progress Study showed that Americans estimated they would need $1.46 million on average to retire comfortably.
David Rae, a Los Angeles-based certified financial planner, told Bloomberg that living expenses in major metropolitan areas often required much larger targets.
“It’s maybe not as big a deal to be a millionaire as it might’ve been when you watch Gilligan’s Island in the ‘60s,” Rae said. “The millionaire was a rich person. Now, it just doesn’t go as far as it used to.”