Data from Fidelity Investments<\/a> shows that the number of 401(k) accounts on its platform holding at least $1 million expanded by 19 percent from the first quarter, reaching a record 769,000 accounts. The jump marks the largest quarterly growth in seven-figure balances since late 2023, according to a report released Thursday.<\/p>\n The surge was fueled by an exceptional period for equities. The S&P 500 gained roughly 15 percent in the second quarter \u2014 its best quarterly performance since 2020 \u2014 and has risen 20 percent over the last 12 months. <\/p>\n Driven by demand for artificial intelligence, robust corporate earnings and federal tax cuts enacted last year, investor confidence remained resilient despite persistent inflation and elevated geopolitical tensions.<\/p>\n Average account balances across Fidelity’s workplace 401(k)s, 403(b)s and Individual Retirement Accounts touched record levels. About 3 percent of Fidelity’s 25.8 million 401(k) account holders are now millionaires.<\/p>\n Despite persistent cost-of-living pressures, workers maintained historically high savings habits. The average employee 401(k) contribution rate remained steady at a record 9.6 percent in the second quarter.<\/p>\n Michael Shamrell, vice president of thought leadership at Fidelity Investments, told CBS News<\/a> that most 401(k) millionaires achieved their balances through long-term consistency rather than market timing.<\/p>\n \u201cIt\u2019s not that they have reached that \u2014 it\u2019s how they did it,\u201d Shamrell said. \u201cWhat was their behavior? One is just saving for a long time.\u201d<\/p>\n He added that Fidelity avoids framing $1 million as a universal benchmark, noting that individual retirement needs vary significantly.<\/p>\n \u201cWe don\u2019t want people to think that, \u2018OK, this is what you should aim for, this is what you’re going to need,\u2019 because everybody\u2019s different, and so you know some might need more, some might need less,\u201d Shamrell said.<\/p>\n Speaking to Bloomberg<\/a>, Shamrell acknowledged the cultural weight of the benchmark. <\/p>\n \u201cThat million-dollar figure across American society just still holds a little bit of cachet, whether it\u2019s a million-dollar home or a million-dollar lottery ticket or Who Wants To Be A Millionaire,\u201d Shamrell told the publication. \u201cWe\u2019re not saying that a million dollars is the end-all, be-all, and that\u2019s everything you\u2019re going to need.\u201d<\/p>\n Despite the growing tally of millionaires, a seven-figure balance remains out of reach for most American workers. Fidelity reported that the overall average 401(k) balance was $155,800 as of June 30, while average 403(b) and IRA balances hovered near $145,000.<\/p>\n Economic anxiety also continues to weigh on the broader workforce. A recent survey<\/a> from financial services company NFP revealed that nearly 70 percent of workers doubted they would be able to retire comfortably, with 72 percent indicating they felt behind on their savings goals. <\/p>\n Separate research from the Employee Benefit Research Institute and Greenwald Research found confidence levels regarding retirement readiness at their lowest point since 2017, citing debt, healthcare costs, inflation and concerns over the long-term solvency of Social Security.<\/p>\n![\"American](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/09\/GettyImages-1818633.jpeg\")
American 401(k) millionaires reached a record high in the second quarter, driven by a surging stock market and consistent employee savings habits (Getty)<\/p>\n![\"Financial](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/09\/GettyImages-77333679.jpeg\")
Financial experts say $1 million does not stretch as far as it used to, with recent surveys showing Americans now estimate needing $1.46 million to retire comfortably (Getty)<\/p>\n