According to Fidelity's Q2 2024 retirement analysis report, the number of 401(k) millionaires in the US reached another record high, 497,000, up from 485,000 in the preceding quarter. Fidelity attributed the steady growth over the last few quarters to an improving macroeconomic landscape and more 401(k) participants starting early and steadily contributing to the employee-sponsored plan over the years. Average 401(k) balances of accounts managed by the wealth management firm also increased 13% year-over-year to $127,100, the third-highest figure. The savings growth momentum was led by GenX 401(k) account holders who have been saving for at least 15 years. Their average account balances increased to $554,000 in Q2 as the average contribution remained over 14% of their paycheck. While many 401(k) benefits exist, account holders increasingly use the plan to free up more cash via tax breaks and speed up net worth growth by utilising employer-match options.
