Record โคNumber of 401(k) Millionaires: ‘People are Staying โthe Course’
โข The number of 401(k) โmillionaires reached a new high in โฃthe third quarter โฃof 2024,according to Fidelity Investments. This โคmilestone โreflects a growing trendโค of prosperous long-term retirement saving among American workers. As of โฃSeptember 30, 2024, Fidelity reported โค797,000 individuals โคhad 401(k) balances of $1 million โor more.
โ This figure representsโฃ a important โincrease from the 667,000 โ401(k) millionairesโค reported at โthe end of 2023. The growth is attributed to a combinationโค of factors, including consistent contributions,โ market gains, and investors โขmaintaining โคtheir courseโข despite economic volatility.
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The average 401(k)โค balance โalso saw an increase, reaching $142,570 as โฃof the third quarter. This โคis up โฃfromโ $130,800 at the end of 2023. โค โTheโ median โคbalance, which is less susceptibleโฃ to distortionโ from very high earners, roseโค to โ$41,300.
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โฃโฃ โฃ Fidelity’s โdata alsoโ indicates that individuals are increasingly utilizing variousโฃ investment options within their 401(k) plans. โ A growing number are diversifying their portfolios, which โฃcan help mitigate risk and possibly enhance returnsโ over the long term.
โข “People areโค staying the course,” saeid โJessica hall, a retirement reporter โforโค MarketWatch. Hall, โaโฃ former Age Boom Academy โฃFellow with Columbia University, has extensively covered retirement and โคaging issues throughout her career, including award-winning work at the Portland Press Herald and Maine Sunday Telegram. She previously spent seventeen years at Reuters covering financial markets.
โ The increasing number of โค401(k) โmillionaires is part ofโข a broader trend of growing retirementโ savings in the Unitedโค States. โWhile challenges remain,โ such as ensuring adequate savings rates โand addressingโ the retirement needs of โdiverseโฃ populations, the positive momentum suggests a growing awareness of the importance of long-term financial โขplanning. Future trends will likely be influenced by factors like โฃinflation, interest rates, and changesโ toโฃ retirementโข legislation.
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Frequently asked Questions about 401(k) Millionaires
What is a 401(k) millionaire?
A 401(k) millionaire โคis โคanโ individual who has โaccumulated $1 millionโ or more inโ their 401(k) retirement โคsavingsโค account.
How many 401(k) millionaires are there?
As of September โ30,2024,Fidelity investments reported 797,000 individuals had 401(k) balances โขof $1 million orโ more.
What is the average 401(k) balance?
The average 401(k) โฃbalance was $142,570 as of the third quarter of 2024, โaccording to Fidelity.
What factors contribute to becomingโข a 401(k) millionaire?
Consistent contributions, โmarket gains, and maintaining a long-term investmentโข strategy are key factors.
Isโ it โrealistic โคfor most peopleโฃ to โฃbecome 401(k) millionaires?
While โฃnot guaranteed, it is indeed โincreasingly achievable withโ disciplined saving and investing overโฃ a long โคperiod.
We hope this article provided valuable insight into the growing number of 401(k) millionaires. Do you have thoughtsโฃ onโ this โtopic? โ Share โขyour comments below, or subscribe to โour โnewsletter for more financial โnews and analysis!