A recent analysis conducted by Fidelity Investments, a major provider of 401(k) retirement plans, revealed a notable increase in the number of accounts with balances exceeding $1 million. In the third quarter, there was a 9.5% rise in such accounts, totaling 544,000 out of approximately 24 million participant accounts managed by Fidelity. The average balance in this group stood at $1.616 million, up from $1.595 million in the previous quarter.
For Gen Xers, the average balance for those saving for at least 15 years was just under $600,000, marking a 6% increase from the previous quarter. The data also showed that the average balance for participants saving for five, 10, or 15 years all saw growth during the quarter. This growth was attributed not only to market gains but also to a strong average savings rate of 14.1%, comprising employee contributions (9.4%) and employer matches (4.7%).
