The number of people with $1 million or more in their 401(k) retirement savings account jumped by 10% from April to the end of June, American financial services company Fidelity Investments found. The firm also reported a 13% surge in millionaires through IRS accounts during the same period.
Millionaires aside, 401(k) holders at Fidelity across the board saw their retirement account balances increase during this period. This was determined following the analysis of balances for more than 45 million IRA, 401(k), and 403(b) retirement accounts.
“Overall, the increase in balances [for all investors] was based on ongoing employer and employee contributions, along with positive market performance,” Michael Shamrell, vice president for workplace thought leadership for Fidelity, observed. “The increase we are seeing in 401(k) millionaires this quarter [also] shows the value of long-term investing.”
While still short of 2021 figures, retirement account balances are on the path to recovery. From the end of last year until June, retirement account balances rose from an average of $104,000 to $113,800.