After Years of Growth, the Number of 401(k) Millionaires Has Dropped
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The number of 401(k) millionaires fell for the first time in a year as stock market volatility in the first quarter weighed on account balances. On Thursday, Fidelity said there were 645,000 401(k) millionaires at the end of March, down from an all-time high of 665,000 at the end of last year. The drop in the first quarter marks a 3% decline from the record in December.
Looking not much farther back, the number of millionaires has experienced healthy growth. Fidelity reported 512,000 401(k) millionaires at the end of the first quarter of 2025. The current number of millionaires is about 26% higher than it was a year ago.
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How to become a 401(k) millionaire
Retirement savers become 401(k) millionaires by making sizable contributions on a consistent basis for decades. It's considered unproductive and even unwise to obsessively check your balance — or worry too much about short-term declines.
Market volatility causes 401(k)s to fluctuate, but long-term investors should stay focused on the bigger picture. The S&P 500's return was -4.3% in the first quarter. Since then, stocks are up about 15% since April 1, the start of the second quarter. Given that performance, a live look at 401(k) balances today would likely show that the number of millionaires has bounced back.
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Here are the number of 401(k) millionaires over the past five quarters, compiled from multiple online reports:
- Q1 2025: 512,000
- Q2 2025: 595,000
- Q3 2025: 654,000
- Q4 2025: 665,000
- Q1 2026: 645,000
Average 401(k) balance
According to Fidelity's 2026 first-quarter retirement analysis, the average balance has increased 11% in the past year, rising from $127,100 to $141,000.
Like the number of millionaires, the average 401(k) balance dipped 3.7% in the quarter, dropping from the record high of $146,400 reached at the end of December.
Average 401(k) savings rate
Fidelity reports a record average savings rate of 14.4%, including employer matches. That's an increase from 14.2% in the fourth quarter.
Fidelity pointed to automatic enrollment features in 401(k) plans, which encourage saving. The share of plans with auto enrollment is 46%, an increase from 37% in 2021, the report said.
The average employer contribution also increased to a record high of $2,080, up from $2,020 a year before.