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By September 4, 2026 / 5:00 AM EDT / CBS News America's ranks of retirement fund millionaires are surging, with the number of 401(k) accounts managed by Fidelity Investments holding at least $1 million reaching a record 769,000 in the second quarter. This represents a 19% increase from the first quarter, driven by a strong stock market and record-high employee contribution rates of 9.6%. About 3% of Fidelity’s 25.8 million 401(k) accounts have balances of at least $1 million, highlighting the impact of long-term saving and rising financial markets.
Older workers, who have consistently saved for decades, are a significant part of this trend. Michael Shamrell, vice president of thought leadership at Fidelity Investments, emphasized that while the $1 million milestone is notable, it’s more important to focus on the behaviors that lead to such savings. Workers continue to contribute to their 401(k)s despite financial pressures like higher gas and grocery costs, maintaining record savings rates.
The stock market’s performance has also encouraged retirement savings. The S&P 500 gained 15% in the second quarter, with a 20% increase over the past year and a 71% increase over five years. Investors are focusing on corporate profit growth, boosted by AI demand and tax breaks from the Republicans' recent legislation.
Despite the record number of 401(k) millionaires, a recent survey by NFP found that 72% of workers feel they are lagging behind in retirement savings. The average Fidelity 401(k) balance is $155,800, while average 403(b) and IRA balances are $145,000 and $144,523, respectively. Workers remain concerned about inflation, living costs, and geopolitical risks, though their personal financial outlook improved when focusing on their own savings.
Shamrell noted that while a third of survey respondents felt positive about their personal financial situation, this optimism may stem from the positive retirement numbers reported by Fidelity.
Source: CBS News
