: 401(k) and IRA millionaires jump in the second quarter, helped by steady worker contributions — but it might not last

by | Aug 17, 2023 | Stock Market

The number of retirement millionaires jumped in the second quarter as improving market conditions and steady contribution rates helped shore up balances, Fidelity Investments said. Fidelity saw a 10% increase in millionaires holding 401(k) accounts to 378,0000 in the second quarter, compared with 340,000 in the first quarter. Among individual retirement accounts (IRAs), Fidelity reported a 13% increase in millionaires – 349,104 in the second quarter compared with 307,623 in the first quarter.

Read: Millionaire no more — 3.5 million people worldwide lost the title last year This jump came as average retirement account balances increased for the third straight quarter, said Fidelity, based on an analysis of savings behaviors and account balances for more than 45 million IRA, 401(k), and 403(b) retirement accounts. The average IRA balance was $113,800 in the second quarter, a 5% increase from the first quarter. Longer term, those balances were up 7% from five years ago and 41% increase from 10 years ago.  Read: $1.8 million to retire? Are you kidding? For the average 401(k) balance, totals increased to $112,400, up 4% from the first quarter of 2023, up 8% increase from five years ago and 39% increase from 10 years ago, Fidelity said. “We are pleased to see a third straight quarter of positive gains for retirement savers as the market continues to improve and both employees and employers commit to establishing a strong financial future,” said Kevin Barry, president of workplace investing at Fidelity Investments. “As we begin to see improvements in marke …

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