Here’s how long it takes workers to become 401(k) millionaires: The number of people who crossed the seven-figure mark hit an all-time high in the first quarter, though retirement savings surged across the board. (Michelle Singletary, May 31, 2024, Washington Post)
The millionaires have an average contribution rate of 17 percent.
Fidelity said record-high contribution levels and positive market conditions pushed average account balances to their highest levels since the fourth quarter of 2021.
In the most recent quarter, total average 401(k) savings rates reached a record high of 14.2 percent, driven by employee and employer 401(k) contributions.
This savings rate is a milestone. It’s the closest it has ever been to Fidelity’s recommendation that workers contribute at least 15 percent of their gross income to their workplace plan. This could include a combination of their savings and a matching contribution from their employer.