Deborah Daniel - 401k

AMERICANS IN THEIR 30S, 40S ARE FINALLY BREAKING THEIR WAY INTO THE 401(K) MILLIONAIRE CLUB

Americans think it’ll take $1.46 million, on average, to retire comfortably, according to a 2024 survey by Northwestern Mutual. And reaching $1 million in retirement savings is a step in the right direction.  There’s good news from Fidelity in that regard, and it’s that 401(k) millionaires are on the rise due to an uptick in worker contribution rates and stock market gains. And further good news is that millennials are finally joining the 401(k) millionaire club, albeit slowly.  While savers aged 28 to 43 represent fewer than 2% of 401(k) millionaires among Fidelity enrollees, the fact that some have gotten to that point is impressive. And with the right approach, you can, too.  During the third quarter of 2024, Fidelity reports the number of 401(k) millionaires increased by 9.5% from the previous quarter. All told, there were 544,000 people in that category during the past quarter, compared to 497,000 in Q2.  It's also worth noting that the average 401(k) balance on a whole was up 23% from a year ago. As of this past quarter, it sat at $132,300.  Balances are also up among savers who have continuously funded their 401(k)s for many years. The average balance for the Gen X workers who’ve been saving in their 401(k) for 15 years in a row grew to $586,100 during the last quarter. This tells us that the average 401(k) millionaire has likely been funding their account for a considerably longer period of time. Deborah is A CPA and tax strategist // heads up Charter Accounting