- According to Fidelity, the number of “401(k) Millionaires” (defined as 401(k) accounts with balances of $1,000,000 or more) increased 27% YoY to 537,000 accounts in 2024. The primary driver being a strong year in the stock market.
- The number of “401(k) Millionaires” has more than doubled from 2019 – 2024 (with 233,000 accounts in 2019) for an increase of 130%.
- The next chart illustrates the number of “401(k) Millionaires” on a quarterly basis. The peak during 2024 occurred in Q3 2024 with 544,000 accounts with a balance of $1 million or more. The number of accounts declined to 537,000 in Q4 2024.
- The low for the time period shown below was in Q1 2020 at with 150,000 accounts.
Average Retirement Balances in 401(k)s and 401(b)s Trend Lower
- In Q4 2024, the average account balance for a 401(k) account at Fidelity was $131,700, which was a decline from $132,300 in Q3 2024. For perspective, the balance in Q4 2019 was $112,300 (pre-pandemic).
Savings Trends by Generation
- Baby Boomers had the highest average balance in Q4 2024 at Fidelity with an average balance in a 401(k) of $249,300, followed by Gen X with an average balance in a 401(k) of $192,300.
- 14.5% of Baby Boomers had a a 401(k) loan, while 25.3% of Gen X had a 401(k) loan in Q4 2024
Savings Trends by Industry
- The final chart examines the average 401(k) savings balance by industry. Legal Services was the highest in Q4 2024 with an average balance of $319,800, following by Computer & Electronic Manufacturing at $290,700.
