Robust returns and steady saving yield record number of 401(k) millionaires

Core Insights - A record number of retirement savers now have $1 million or more in their 401(k)s or IRAs, with the number of 401(k) millionaires increasing by 16% to 595,000 by the end of June [1][4] - The average 401(k) balance rose to $137,800, marking an 8% increase from the previous year and a jump from $127,100 at the end of March [7] - Total average 401(k) savings rates remained steady at a record high of 14.2%, close to Fidelity's suggested savings rate of 15% [5] Retirement Saver Demographics - The average millionaire in 401(k) plans is approximately 59 years old and has been enrolled in their employer's plan for an average of 25 years [4] - These savers maintain an average individual savings rate of about 17.6%, which, when including employer matches, totals 26.2% [4] Market Behavior and Contributions - Despite market fluctuations, the majority of retirement savers did not alter their savings strategies, allowing them to benefit from market rebounds [1][5] - Only 5.5% of retirement savers changed their 401(k) asset allocation from the end of March to the end of June [5] Overall Market Trends - Average balances for 403(b) accounts increased by 9% to $125,400, while individual retirement accounts rose by 8% to $131,366 from the end of March [7] - The data is derived from 25,600 defined-contribution plans covering 24.6 million participants, along with 7.8 million IRA accounts and 10,677 tax-exempt plans covering 9 million participants [8]