There's Now a Record Number of 401(k) Millionaires — But Can You Guess the Average Balance? Hint: It's Nowhere Near $1 Million

Millionaires are multiplying wrong America's 401(k)s, and headlines are throwing a party. But buried beneath the solemnisation is simply a little glamorous stat: the mean equilibrium is inactive hardly implicit six figures.

Fidelity's latest report, released successful September, shows a record-breaking 654,000 accounts present clasp implicit $1 million, a astir 10% leap from the erstwhile quarter. It's the highest fig ever recorded.

Yet contempt the surge, the mean 401(k) equilibrium sits astatine conscionable $144,400—a grounds successful its ain right, but inactive a fraction of what the wealthiest accounts hold.

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Americans are "continuing to grounds impactful savings behaviors specified arsenic staying the people and focusing connected semipermanent goals, which intelligibly is having a affirmative effect connected status savings," according to Fidelity Investments President of Workplace Investing Sharon Brovelli. "To spot balances and redeeming behaviors summation crossed each savings vehicles is encouraging, particularly arsenic savers proceed to navigate an uncertain economical environment."

Fidelity reports that 401(k) millionaires surged from 595,000 to 654,000 successful a azygous quarter, driven by dependable contributions and marketplace momentum. But that occurrence communicative mostly belongs to a tiny radical of precocious earners and semipermanent savers.

For everyone else, maturation is much gradual.

Current averages for different status plans:

• IRA accounts mean $137,902

• 403(b) plans, commonly utilized by nonprofit and acquisition workers, mean $131,200

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No median values were included, but they would astir surely travel successful lower—especially for younger participants oregon those conscionable getting started.

Still, semipermanent savers are seeing meaningful progress. Women who've contributed to their 401(k) for 15 consecutive years present mean $501,100, the archetypal clip Fidelity has recorded this radical crossing the half-million mark. That's a 16.5% summation implicit the erstwhile year.

Meanwhile, younger investors are reshaping status strategies. According to Fidelity, 95% of Gen Z's 401(k) contributions present spell to Roth accounts, a higher stock than some Millennials astatine 75% and Gen X astatine 66%.