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More Americans reach $1 million in 401(k) accounts, Fidelity data shows
Fidelity says average 401(k) balances rose 10.5% in the second quarter, while the share of savers with outstanding 401(k) loans ticked up to 19.5%.
Fidelity Investments data shows 769,000 retirement savers now have $1 million or more in their 401(k), a record despite ongoing financial pressure, according to Yahoo Finance. The firm also reported that average 401(k) balances increased 10.5% in the second quarter, its strongest quarterly growth since the fourth quarter of 2020, helped in part by stock market gains.
Yahoo Finance also cites Fidelity figures showing retirement savings rates stayed at record levels for a second straight quarter. The average savings rate held at 14.4% for 401(k) savers and 12.0% for 403(b) participants, with employees contributing an average 9.6% of pay to their accounts, and employers contributing an average 4.8%.
Still, Fidelity data indicates some savers are drawing on their accounts to cover expenses as prices remain elevated. The share of retirement savers with an outstanding 401(k) loan rose to 19.5% in the second quarter from 19.2% at the end of the first quarter, and the portion taking hardship withdrawals rose year over year to 3%.
The article notes contributions and matching behavior remain strong, with 81.2% of 401(k) participants contributing enough to receive their full employer match. Fidelity data cited by Yahoo Finance also says 12.1% of participants increased their contribution rate in the quarter, and it highlights that millennials saw average 401(k) balances rise 14.2% during the quarter and 26.1% year over year.