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.
Markets have always been unpredictable. What has changed is the amount of information investors are trying to process and the growing role advisors play in helping clients avoid emotional decisions
Six apartment deals, one "big account," and $2.7M in undocumented insider loans. Now the lawsuit lands
The Illinois order refers to Brandon Ellington’s investment program as a “Ponzi-like scheme.”
But the Amazon executive chair seems to want it both ways, arguing that taxing the ultra-wealthy won't help struggling Americans.
Northern Trust planning leader sees the bill extending qualified charitable distributions to employer plans as a potential positive step — but advisors shouldn't overlook bigger holes in the strategy.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
