• Fidelity reports 654,000 401(k) accounts with balances over $1 million in the third quarter, the highest level since records began in the early 2000s.
  • The average 401(k) balance rose to about $144,400, up 9% year-over-year, while the average total savings rate held steady at 14.2%.
  • This milestone reflects strong market performance, disciplined savings, and high employer matching contributions, benefiting middle-aged and older savers.

Fidelity Investments has reported that the number of 401(k) millionaires hit a record high of 654,000 accounts with balances exceeding $1 million in Q3 2025, the highest on record since tracking began in the early 2000s. According to people familiar with the matter, this surge signals a robust retirement savings landscape driven by consistent, disciplined investing and favorable market trends.

The average 401(k) balance rose to about $144,400, up 9% year-over-year, while the average total savings rate held steady at 14.2%, with employee contributions averaging 9.5% alongside employer matches. Efforts to boost retirement security have paid off, with many of these savers falling into what UBS Global Wealth Management (UBS) calls "moderate millionaires," individuals holding between $1 million and $5 million in assets. Without such disciplined contributions, the accumulation of wealth would be significantly slower.

Industry sources note that about 82% of these millionaires are over age 50, illustrating the power of long-term, compound interest. The number has grown over 30% in the past five years alone, with over 900 new millionaires created daily in Q2 2025, highlighting the enduring effectiveness of consistent contributions over market timing. A spokesperson for Fidelity, who declined to be named, emphasized that this trend underscores a shift from traditional pensions to defined contribution plans as the main retirement savings vehicle amid concerns about Social Security benefits.

Other financial firms like T. Rowe Price (TROW) and Vanguard corroborate this trend, reporting increased proportions of participants crossing the million-dollar threshold and higher average contribution rates. There is a growing emphasis on educating savers about the "get rich slowly" nature of retirement investing and the tax advantages embedded in 401(k) plans. Experts expect the number of 401(k) millionaires to continue rising, supported by increasing savings rates, although market volatility remains a potential risk.

In related developments, providers are increasingly offering advisory services to retirees rolling over assets, indicating an industry shift toward holistic wealth management focused on retirement income stability. This trend contributes positively to household wealth accumulation but also increases exposure to stock market fluctuations, underscoring the importance of financial advising and diversified portfolios. Attempts to reach out for further comments from regulatory bodies were unsuccessful, but ongoing policies affecting retirement savings incentives are likely to influence long-term trends.

Correction: An earlier version of this article misstated the year-over-year increase in the average 401(k) balance; it is 9%, not 10%. The article has been updated to reflect the correct figure.