401(k) millionaires stage comeback in Q2 with market gains

401(k) millionaires stage comeback in Q2 with market gains
This year's double-digit gains in the S&P 500 have helped swell retirement balances, Fidelity says.
AUG 17, 2023
By  Bloomberg

IRA and 401(k) millionaires are staging a comeback, with the number of seven-figure retirement accounts at Fidelity Investments inching back toward a 2021 high.

The tally of such accounts rose by more than 12% in the second quarter to 727,104, according to an analysis released by Fidelity Thursday. That’s the highest since the first three months of 2022 and within striking distance of a record.

This year’s double-digit gains in the benchmark S&P 500 have helped swell retirement balances for a third quarter in a row following a plunge that tracked the stock market last year.

“The average tenure of our millionaire 401(k) savers is 26 years, showing that staying in-plan and continuing to invest over the long term can pay huge dividends over time, particularly during positive turns in the market,” said Michael Shamrell, vice president of thought leadership at Fidelity Workplace Investing.

And while younger savers haven’t had decades in the market to amass large balances, Fidelity data show that many borrowers used the federal student loan payment pause to funnel money into retirement accounts. Close to three-quarters of student loan borrowers put at least 5% of their pretax salaries into 401(k)s during the period when payments were paused. That compares with 63% before the pause.

The average 401(k) balance at Fidelity is $112,400

Microsoft not the only AI stock to own in second half, says Hennion & Walsh CIO

Latest News

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

Apella Wealth comes to Washington with Independence Wealth Advisors
Apella Wealth comes to Washington with Independence Wealth Advisors

The Harford, Connecticut-based RIA is expanding into a new market in the mid-Atlantic region while crossing another billion-dollar milestone.

Citi's Sieg sees rich clients pivoting from US to UK
Citi's Sieg sees rich clients pivoting from US to UK

The Wall Street giant's global wealth head says affluent clients are shifting away from America amid growing fallout from President Donald Trump's hardline politics.

US employment report reactions: Overall better than expected, but concerns with underlying data
US employment report reactions: Overall better than expected, but concerns with underlying data

Chief economists, advisors, and chief investment officers share their reactions to the June US employment report.

Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading
Creative Planning's Peter Mallouk slams 'offensive' congressional stock trading

"This shouldn’t be hard to ban, but neither party will do it. So offensive to the people they serve," RIA titan Peter Mallouk said in a post that referenced Nancy Pelosi's reported stock gains.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.