More Americans are breaking their way into the 401(k) millionaire club than ever. Here’s what they’re doing

Core Insights - Americans believe that an average of $1.26 million is needed for a comfortable retirement, with reaching $1 million in retirement savings seen as a positive step [1] Group 1: Retirement Savings Trends - Fidelity's Q3 2025 analysis indicates a record high of 654,000 individuals with 401(k) millionaires [2] - Despite inflation and market uncertainties, retirement savings remain a priority, with a combined contribution rate of 14.2% of employees' salaries [3] - The average 401(k) balance has increased to $144,400, reflecting a 9% rise from Q3 2024 [4] Group 2: Demographics and Saving Strategies - Millennials and Gen Z are increasingly favoring Roth IRAs, with 19% and 20% of members contributing to these accounts respectively [4] - Long-term savers, particularly boomers and Gen Xers who have maintained accounts for 25 to 26 years, dominate the 401(k) millionaire demographic [4] - Consistent saving and early investment are crucial for becoming a 401(k) millionaire, with a $400 monthly investment at a 7% annual return potentially growing to over $1 million in 41 years [5] Group 3: Innovative Saving Methods - For those who find $400 per month challenging, starting with smaller amounts and gradually increasing contributions is recommended [6] - The Acorns app offers a method to invest spare change by rounding up everyday purchases, contributing to a diversified portfolio [6]