There’s a new record number of 401(k) millionaires — and the Iran conflict will test their discipline

Core Insights - Fidelity and Vanguard emphasize the importance of long-term thinking for retirement savings, especially during market volatility and geopolitical tensions [2][6] Group 1: 401(k) Millionaires - The number of 401(k) millionaires reached 665,000 in Q4, an increase from 654,000 in Q3, according to Fidelity [3] - These millionaires typically have account-holding tenures of around 25 years, with 4% being millennials born between 1981 and 1996 [4] Group 2: Account Balances - Fidelity reported that the average 401(k) balance rose to $146,400, an increase of over 11% year-over-year, while the median balance was $34,400 [6] - The average 403(b) account increased by 13% to $133,500, with a median balance of $33,270 [6] - IRA balances also saw a 7% increase, averaging $137,095, with a median balance of $10,476 [7] - Vanguard's report indicated that average participant account balances reached an all-time high of $167,970, a 13% increase from year-end 2024, with a median balance of $44,115, reflecting a 16% increase [7] Group 3: Market Performance - Fidelity noted that the growth in account balances was partly due to strong market performance, with the S&P 500 gaining 16% and international equities surging 32% [5] - Despite recent global market weaknesses following geopolitical events, Fidelity advises maintaining long-term strategies rather than reacting to short-term market fluctuations [6]