Why there are more 401(k) millionaires in the US than ever before

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Why there are more 401(k) millionaires in the US than ever before
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A new report published by Fidelity Investments shows the number of 401(k) accounts with balances of $1 million or more hit a new record at the end of June.

The number of 401 plan participants with balances of $1 million or more rose to a record high at the end of June, according to new findings published by Fidelity Investments.There were about 497,000 so-called 401 "millionaires" during the second quarter, the data shows. That marks a 2.5% increase from the previous quarter and is the third-straight quarter of retirement savings growth.Among those accounts, the average balance hit $1,595,200, up from $1,581,000 at the end of March.

2% of their income toward savings. Retirement experts recommend that at least 15% of your income goes toward savings. Consumers are grappling with a number of financial headwinds, including steep interest rates and ongoing inflation that has made the cost of just about everything from rent to gasoline to groceries more expensive. The burden is disproportionately borne by low-income Americans, whose already-stretched paychecks are heavily affected by price fluctuations.

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