Retirement savers experienced their third consecutive quarter of growth in the second quarter of 2024, spurring another all-time high in 401(k) millionaires, according to the latest analysis Fidelity Investments.
The report indicates that average balances across more than 48 million retirement accounts have reached the third-highest levels on record, bolstered by strong contributions and favorable market conditions.
The analysis revealed a fresh record in 401(k) millionaires, whose ranks increased by 2.5 percent from 485,000 in Q1 2024 to reach 497,000. IRA millionaires grew more quickly, accelerating 6 percent from 398,594 to 376,275.
IRAs, 401(k)s, and 403(b)s logged growth in the low single digits during the second quarter, clocking in at 14 percent, 13 percent, and 12 percent year-on-year, respectively.
While the growth was more muted than in the previous two quarters, it was enough to bring IRA balances up to $129,200 on average by the end of Q2 2024. Balances for 401(k)s reached $127,100, while the average 403(b) account balanced stood at $114,700.
“Retirement savers in the second quarter of 2024 benefited from the continued upswing of the previous quarter, when contribution levels and average account balances reached record highs,” Sharon Brovelli, president of workplace investing at Fidelity, said in a statement. “Through market ups and downs, we always stress the importance of making steady retirement contributions.”
The latest look at retirement from Fidelity also showed strong gains among Gen Xers, with total IRA contributions from this group rising 30 percent to reach their highest levels in five years. Among those who have been building their nest eggs for 15 years, average balances hit $554,000.
“At this moment, Gen X retirement savers are in a pivotal place in their financial journey,” said Roger Stiles, president of Fidelity Wealth. “Not only are they balancing significant financial responsibilities, but with retirement around the corner, having the appropriate level of retirement income has become a top priority.”
Fidelity also shed light on the progress made by retirement savers among nonprofit organizations. The firm’s biannual “Better Outcomes for Nonprofit Organizations” study reveals that average account balances for nonprofit employees have tripled over the past decade, increasing from $70,000 in 2014 to $249,000 in 2023 for consistently active participants.
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