{"id":10583,"date":"2025-11-23T08:58:10","date_gmt":"2025-11-23T12:58:10","guid":{"rendered":"https:\/\/kerryhannon.com\/?p=10583"},"modified":"2025-11-23T08:59:04","modified_gmt":"2025-11-23T12:59:04","slug":"have-millennials-finally-hit-it-big-new-fidelity-survey-spotlights-status-of-millionaire-retirement-savers","status":"publish","type":"post","link":"https:\/\/kerryhannon.com\/?p=10583","title":{"rendered":"Have millennials finally hit it big? New Fidelity survey spotlights status of millionaire retirement savers."},"content":{"rendered":"
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The pool of 401(k) millionaires, an all-time high, totaled 654,000 in September, up from 595,000 at the end of June, according to Fidelity Investments.<\/div>\n<\/div>\n
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These gains reflect the robust record-high performance of the US market, with the S&P 500 (^GSPC<\/a>) up 8.1%, the Nasdaq Composite (^IXIC<\/a>) up 11.2%, and the small-cap Russell 2000 (^RUT<\/a>) up 12.4% in the same period.<\/p>\n

The biggest group of leapers to this lofty level \u2014 millennials, those between the ages of 29 and 44.<\/p>\n

The new entrants are a significant increase when compared to the first quarter, when only 512,000 savers had at least $1 million in their nest egg, down from 537,000 at the end of last year.<\/p>\n

\u201cHistorically the 401(k) millionaires have been Gen X and Boomers, but as they are now getting further in their careers, we’re starting to see millennials reach the million dollar milestone, which is an interesting change to note,\u201d Michael Shamrell, vice president of workplace thought leadership at Fidelity Investments, told Yahoo Finance.<\/p>\n

Read on Yahoo Finance<\/i><\/strong><\/a><\/p>\n

The 401(k) data is based on Fidelity\u2019s 26,000 defined-contribution plans at various companies across the country, covering 24.8 million participants, as well as 18.3 million IRA accounts and 403(b) data on 10,670 tax-exempt plans, covering 9.25 million participants.<\/p>\n

According to the analysis, 3.7% of millionaires are millennials \u2014 an increase from 1.8% a year ago, Shamrell said. \u201cIf we round, the percentages of millionaires are: Boomers 36% (because they are now pulling from their retirement); Gen X 60%; Millennials 4%.\u201d<\/p>\n

Across the board, account balances clocked in at record highs with the average 401(k) balance of $144,400 and average IRA account balance of $137,902, both increasing 5% from the end of June.<\/p>\n

For the first time, women\u2019s average account balances crossed the half-million-dollar mark to $501,100, up 16.5% from a year ago. These were all long-term savers who have been in their 401(k) for 15 years continuously, Shamrell said.<\/p>\n

Total average 401(k) savings rates of 9.5% and an average employer contribution rate of 4.7% held steady from earlier this year, putting the combination of employee and employer 401(k) contributions at a record high of 14.2%. Fidelity’s suggested savings rate is 15%.<\/p>\n

Small but mighty millionaires<\/h2>\n

To be fair, the number of millionaire savers swings with the market. And they compose a small percentage of Fidelity\u2019s retirement savers..<\/p>\n

When you pull back the cover, the record-high is not so effervescent.<\/p>\n<\/div>\n

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Nearly 20% of Fidelity account participants have outstanding loans, up from 18.7% at this same time last year. And 2.8% took hardship withdrawals up from 2.6% at the end of June.<\/p>\n

Have a question about retirement? Personal finances? Anything career-related? Click here to drop Kerry Hannon a note.<\/em><\/strong><\/a><\/p>\n

A withdrawal from your 401(k) account is typically taxed as ordinary income. Also, you\u2019ll pay a 10% early withdrawal penalty before age 59\u00bd, unless you meet one of the IRS exceptions. These include certain medical expenses, qualified tuition payments, and up to $10,000 for first-time homebuyers. Some employer plans, too, will allow a non-hardship withdrawal.<\/p>\n

While I\u2019d be foolish to crystal ball how millionaire row will look for these retirement savers at year-end, it\u2019s clear that millennials have finally been admitted to the club.<\/p>\n

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