Americans in their 30s and 40s are finally joining the 401(k) millionaire club—and here’s how
According to a 2024 survey from Northwestern Mutual, Americans believe they need an average of $1.46 million to retire comfortably. Reaching $1 million in retirement savings is a step in the right direction.
There’s good news on that front from Fidelity, where the number of 401(k) millionaires is growing thanks to rising worker contribution rates and a rising stock market. Further good news is that millennials are finally joining the 401(k) millionaire club, albeit slowly.
While less than 2% of Fidelity 401(k) millionaire savers are between the ages of 28 and 43, the fact that some of them have reached that level is impressive. With the right approach, you can too.
Fidelity reported that in the third quarter of 2024, the number of 401(k) millionaires increased by 9.5% from the previous quarter. All told, there were 544,000 people in this category last season, compared with 497,000 in the second.
Also worth noting is that the overall average 401(k) balance is up 23% from a year ago. As of last quarter, its price was $132,300.
Savers who have continued to fund their 401(k) plans over the years have also seen their balances increase. The average balance of Gen X workers who have saved in a 401(k) for 15 consecutive years grew to $586,100 last quarter. What this tells us is that the average 401(k) millionaire is likely to fund their account over a considerable period of time.
Among Millennials, the average 401(k) balance is currently $66,500. Given that the oldest Millennials are just halfway through their careers and the youngest still have most of their working years, it’s reasonable to assume that over time the average 28- to 43-year-old The balance will continue to grow.
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Becoming a 401(k) millionaire may be more feasible than you think. But the key is to keep saving, and if you haven’t missed the boat yet, start small.
