401(k) and IRA Millionaires Surge in 2023 Amid Stock Market Boom

Fidelity Investments reports a 41% increase in 401(k) millionaires, with positive investing behaviors and market performance driving growth.

A surge in the stock market in 2023 led to a significant increase in the number of 401(k) and IRA millionaires, with Fidelity Investments reporting a 41% rise in 401(k) millionaires and a record number of IRA millionaires.
The average 401(k) balance rose to $118,600 by the end of 2023, reflecting a 14% increase over the year, while the average IRA balance also saw a 12% increase.
Positive investing behaviors, such as consistent contributions and taking advantage of employer matching, were highlighted as key factors contributing to the growth in retirement account balances.
Despite the increase in millionaires, the overall number of retirement savers benefiting from these gains remains low, with only a small percentage of 401(k) participants and IRA holders reaching millionaire status.
Financial experts emphasize the importance of a long-term investment strategy and caution against tapping into retirement savings prematurely, even in times of financial stress.