Fidelity says number of 401(k) millionaires hits record high

Fidelity says number of 401(k) millionaires hits record high
Employee savings rate also hit a record in Q2 at 8.8%
AUG 21, 2019
By  Bloomberg

Fidelity Investments said the number of retirement savers with at least $1 million in their account hit a record, as did the employee savings rate, according to data from 401(k) plans that it administers. The average employee contribution rate reached 8.8% in the second quarter, up a full percentage point from a decade ago, Fidelity said in a press release Wednesday. The analysis is based on the 30 million retirement accounts the fund company administers. [Recommended video: Retirement advisers can boost business by focusing on participants in these ways]​ Employee contribution rates have been steadily climbing since Congress passed the Pension Protection Act in 2006, Fidelity said. The federal law made it easier for employers to automatically enroll new employees in their 401(k) plans at set contribution rates. Fidelity found that the number of people with more than $1 million in their 401(k) increased to 196,000. The average balance in an account was $106,000, which was down slightly from a record of $106,500 last year before markets swooned in the fourth quarter, it said. [More: Fidelity draws adviser wrath with 1.9% cashoffer]

Latest News

Investing in stocks? Here are the top 8 questions you need to answer before you start
Investing in stocks? Here are the top 8 questions you need to answer before you start

Looking to refine your strategy for investing in stocks in the US market? Discover expert insights, key trends, and risk management techniques to maximize your returns

Indivisible Partners selects DPL to arm advisors for insurance business
Indivisible Partners selects DPL to arm advisors for insurance business

The RIA led by Merrill Lynch veteran John Thiel is helping its advisors take part in the growing trend toward fee-based annuities.

RIA M&A stays brisk in first quarter with record pace of dealmaking
RIA M&A stays brisk in first quarter with record pace of dealmaking

Driven by robust transaction activity amid market turbulence and increased focus on billion-dollar plus targets, Echelon Partners expects another all-time high in 2025.

New York Dems push for return of tax on stock sales
New York Dems push for return of tax on stock sales

The looming threat of federal funding cuts to state and local governments has lawmakers weighing a levy that was phased out in 1981.

Human Interest and Income Lab streamline workflows for retirement-focused advisors
Human Interest and Income Lab streamline workflows for retirement-focused advisors

The fintech firms' new tools and integrations address pain points in overseeing investment lineups, account monitoring, and more.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.