This week has been a disappointment for checking 401(k) accounts, but that’s unusual for 2023. The stock market’s consistent rise throughout the year has resulted in a 26% increase in the number of individuals with at least $1 million in their 401(k) accounts as of June, according to the Wall Street Journal. Fidelity Investments reported 378,000 savers in this bracket, up from 299,000 at the end of last year. The same trend applies to IRA accounts, with the number of millionaires increasing by a similar percentage to 350,000. This can all be attributed to the S&P 500’s impressive 17% gain in 2023 so far.
“We discovered that an increasing number of people realize that saving for retirement is a marathon, not a sprint,” said Mike Shamrell, a Fidelity vice president, as reported by the Washington Post. However, not all savers have reached the million-dollar milestone, as mentioned by MarketWatch. The average 401(k) balance in the second quarter was $112,400, and the average IRA balance was $113,800. In comparison, the average balance for those in the millionaires’ club was $1.5 million. Adding more context, only 1.6% of Fidelity 401(k) accounts were valued at $1 million or more, and only 2.5% of IRA accounts. (Read more stock market stories.)
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