401k Millionaires on the Rise

As we continue through 2024, I wanted to share some data that many may find positive. Fidelity Investments just announced that 440,000 retirement savers reached an incredible milestone in 2023: $1 million in their 401(k).

That’s despite market fluctuations and what many thought would be a difficult financial year. In fact, recently released data reveals that the average 401(k) balance rose 14 percent from 2022 to 2023. But that’s not all – Individual Retirement Account (IRA) balances also increased 12% year over year.

On top of that, numerous 401(k) plans with a balance of $1 million or more increased by 20% in the final quarter of 2023. What does this tell us? Savings vehicles, like 401(k)s or IRAs, continue to show resilience and are effective tools for investing in one’s financial future.