The number of 401(k) millionaires holding accounts with Fidelity Investments reached an all-time high during the second quarter of 2025. Fidelity reported that 595,000 individuals had achieved millionaire status in their retirement accounts.
The median balance among these 401(k) millionaires was $1.4 million. Fidelity attributed this success to the long-term saving habits of these investors, many of whom are Baby Boomers and Gen X-ers. These savers had consistently contributed to their accounts for an average of 25 years, navigating various economic challenges including the dot-com bubble and the 2008 financial crisis.
According to Mike Shamrell, vice president of thought leadership at Fidelity, these individuals’ success wasn’t due to any single, high-performing investment but rather a consistent, long-term approach to saving. He emphasized that building retirement wealth is a marathon, not a sprint.
The strong performance of the stock market also contributed to the overall growth in retirement account balances. The S&P 500 experienced significant gains during the second quarter, boosting average balances across various retirement plans.
Average 401(k) balances increased by 8% year-over-year, reaching $137,800. The median 401(k) balance stood at $32,300. Similar increases were seen in 403(b) and IRA balances.
Sharon Brovelli, president of workplace investing at Fidelity, highlighted the importance of consistent investment strategies. She noted that most savers maintained their investment plans despite market volatility, demonstrating the value of a long-term perspective.
Only a small percentage of retirement savers made adjustments to their 401(k) asset allocation during the second quarter. The vast majority of those who made changes did so only once.
Shamrell further emphasized the importance of avoiding impulsive changes in response to short-term market fluctuations. He pointed out that the market often recovers quickly from periods of uncertainty, and maintaining a long-term strategy allows investors to benefit from these rebounds.
Despite market volatility, 401(k) contribution rates remained strong. Employee contributions averaged 9.5%, while employer contributions averaged 4.8%, resulting in a total contribution rate of 14.2%. This is close to Fidelity’s recommended savings rate of 15%.
While average IRA contributions remained relatively stable, contributions from Gen X-ers and Baby Boomers showed significant increases compared to the previous year.
Robert Mascialino, president of wealth at Fidelity, noted that despite market uncertainty, many savers, particularly Baby Boomers and Gen X-ers, continued to prioritize retirement sav
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