More and more 401(k) holders can now flex their millionaire status.<\/p>\n
According to Fidelity\u2019s data, 654,000 of its clients with 401(k)<\/a> accounts were millionaires in 2025, marking a new all-time high for the firm, Morningstar reports (1). Other financial institutions, such as T. Rowe Price and Alight, also reported twice as many 401(k) millionaires as in 2022, according to the Wall Street Journal (2).<\/p>\n UBS recently described this new class of high-net-worth individuals as \u201ceveryday millionaires,\u201d since they tend to maintain middle-class spending habits despite their ballooning accounts. Analysts at UBS also found that these millionaires collectively rose to 52 million globally in 2025 (3).<\/p>\n While the stock market outperformance certainly played a role, many people reached this \u201cmoderate millionaire\u201d status thanks to consistent, automated contributions. Data from Vanguard revealed that 45% of 401(k) holders increased the percentage they contributed to their plans in 2024, leading to a 10% rise in aggregate account balances (4).<\/p>\n Although these numbers are fantastic for many Americans, they don\u2019t tell the whole story of retirement readiness. In fact, news of these millionaires hides more worrying long-term financial trends.<\/p>\n Recent research from the Schwartz Center for Economic Policy Analysis (SCEPA) paints a bleaker picture of the current state of retirement savings.<\/p>\n According to the newly published report (5), roughly 35% of respondents near retirement age say they feel \u201con track\u201d to cover their expenses. Meanwhile, researchers also found that about 50% of Americans aged 62-74 didn\u2019t have enough to cover $25,000 per year in retirement. The Center for Retirement Research at Boston College also found that 39% of working-age households are likely to see a decline in their living standards after entering retirement (6).<\/p>\n So, even though more retirees are hitting the millionaire mark in their 401(k)s, they\u2019re still in the minority. Currently, only 16% of retirees<\/a> claim to have seven-figure nest eggs.<\/p>\n Taking all of these statistics into account, SCEPA doesn\u2019t advise opting for more 401(k) features or higher \u201ccatch-up\u201d deposits as a solution for making retirement more achievable. Instead, the researchers proposed federal policies, such as \u201cGuaranteed Retirement Accounts,\u201d alongside higher Social Security standards (5).<\/p>\n Story Continues <\/p>\n If these plans aren\u2019t implemented, SCEPA warns that America could maintain its higher-than-average rate of elder poverty (currently 23%) compared to other industrialized nations.<\/p>\n Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here\u2019s the number that counts (and how to make it skyrocket)<\/a><\/p>\n While it\u2019s true that more Americans than ever have $1 million in their 401(k)s, most people are still far from achieving that goal.<\/p>\n For instance, a Northwestern Mutual survey found that most Americans have $88,400 saved for retirement, which is well below the $1.46 million target that many respondents feel they should have in their accounts (7).<\/p>\n Whether you care about hitting $1 million or not, the most beneficial strategy to becoming retirement ready is to focus on cultivating the patience and boring behaviors that create wealth over time.<\/p>\n As a rule of thumb, plan to direct 12% to 15% of income toward retirement, including your employer\u2019s match. This combined savings rate keeps you on track to get the most out of compounded growth over the long haul and take advantage of any \u201cfree money\u201d your employer offers.<\/p>\n Another common strategy many 401(k) millionaires use is automated annual increases. As the name suggests, this tool raises your contribution amount each year, and it often coincides with raises, so you don\u2019t feel as much of a hit in your day-to-day spending.<\/p>\n But it\u2019s not just about how much you contribute that matters. Strategically picking your investments is also a big part of whether you\u2019re poised for the most long-term growth. Although there\u2019s no standard formula and everyone has a unique risk tolerance, putting a small portion of your funds in growth-oriented investments (particularly in your younger years) could increase the odds of outsized gains.<\/p>\n It\u2019s also important to know what you realistically need to maintain your ideal retirement lifestyle. Sure, it\u2019d be sweet to see seven figures in a retirement account, but that\u2019s not necessarily what everyone needs given their circumstances.<\/p>\n One common retirement planning equation is the \u201cRule of 25,\u201d which multiplies your anticipated annual retirement spending by 25 to estimate what you might need in savings. And don\u2019t forget that Social Security benefits factor into this estimate of future income.<\/p>\n While you can\u2019t control national trends or headwinds like inflation, you can plan defensively by estimating future spending needs and adjusting your savings pace. Even if all these strategies don\u2019t put you in the millionaire\u2019s club, they will increase the odds of a financially strong retirement.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Morningstar (1<\/a>); The Wall Street Journal (2<\/a>); UBS (3<\/a>); Vanguard (4<\/a>); Schwartz Center for Economic Policy Analysis (5<\/a>); Center for Retirement Research (6<\/a>); Northwestern Mutual (7<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"More and more 401(k) holders can now flex their millionaire status. 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