The American retirement dream is alive and well for a record number of workers. According to Fidelity Investments' latest quarterly analysis, the number of 401(k) accounts with balances of $1 million or more jumped to 654,000 as of September 30, 2025—a 10% increase from the previous quarter and an all-time high.

The millionaire count isn't the only record. Average 401(k) balances climbed to $144,400, a 9% increase from a year earlier and another historic peak. IRA millionaires also hit a new record at 559,181, up 11.5% from the prior quarter.

What's Driving the Boom

The surge in retirement wealth reflects a confluence of favorable factors:

Market performance: Despite periodic volatility—including the sharp April selloff following tariff announcements—U.S. markets delivered strong returns in 2025. Through September 30, the Dow Jones Industrial Average gained 9%, the S&P 500 rose 14%, and the Nasdaq Composite climbed 17%.

Disciplined contributions: Fidelity's data shows the average total savings rate reached a record 14.2%, combining 9.5% in employee contributions with 4.8% from employer matches. This figure approaches Fidelity's recommended 15% savings target.

Time in market: The majority of retirement savers maintained their contributions even during periods of significant market turbulence, allowing compound growth to work in their favor.

The Profile of a 401(k) Millionaire

Who are these retirement savers who've crossed the seven-figure threshold? Fidelity's data reveals some consistent characteristics:

  • Long tenure: The average 401(k) millionaire has been saving in their workplace plan for approximately 26 years
  • High savings rate: Most contribute close to the IRS maximum, taking full advantage of employer matches
  • Equity-heavy allocation: Millionaires typically maintain stock-heavy portfolios, accepting short-term volatility for long-term growth
  • Steady employment: Consistent participation in employer-sponsored plans, even through job changes

"The path to becoming a 401(k) millionaire isn't about picking the right stocks or timing the market. It's about starting early, saving consistently, and staying invested through market cycles. The millionaires in our data didn't get there overnight—they got there through decades of disciplined behavior."

— Mike Shamrell, Vice President of Thought Leadership, Fidelity Investments

A Milestone for Women Savers

One notable milestone from the latest data: the average balance for women who have been in their 401(k) continuously for 15 years crossed the $500,000 mark for the first time ever, reaching $501,100. While a persistent gender gap in retirement savings remains, this represents meaningful progress.

Several factors have contributed to closing the gap:

  • Increasing workplace participation rates among women
  • Growing awareness of the retirement savings gap
  • Automatic enrollment features that boost participation regardless of gender
  • Catch-up contribution provisions that allow accelerated saving

New Contribution Limits for 2026

Workers looking to join the millionaire club have more room to save this year. The IRS increased 401(k) contribution limits for 2026:

  • Standard contribution limit: $24,500 (up from $23,500 in 2025)
  • Catch-up contributions (age 50+): Additional $7,500
  • Super catch-up (ages 60-63): Additional $11,250 under new SECURE 2.0 provisions
  • Total possible contribution (age 60-63): $35,750

These higher limits, combined with employer contributions, create significant wealth-building opportunities for disciplined savers.

Lessons from the Data

Fidelity's analysis offers several actionable insights for retirement savers at any balance level:

1. Stay invested during volatility: When markets dropped sharply in April 2025 following tariff announcements, the vast majority of retirement savers held steady. Those who panic-sold missed the subsequent recovery.

2. Maximize employer matches: At an average employer contribution rate of 4.8%, failing to contribute enough to capture the full match leaves significant money on the table.

3. Increase contributions over time: Many workplace plans offer automatic escalation features that boost savings rates annually. Enabling this feature makes saving more painless.

4. Think long-term on allocation: Younger savers especially should consider equity-heavy portfolios, accepting short-term volatility in exchange for higher expected long-term returns.

The Broader Context

While the record millionaire count makes headlines, it's worth noting the challenges many Americans still face in retirement preparedness:

  • Approximately 57 million American workers lack access to a workplace retirement plan
  • The median 401(k) balance—a better measure of the typical saver—remains significantly lower than the average
  • Many workers, particularly in lower-wage positions, cannot afford to contribute even when plans are available

State-sponsored automatic IRA programs are helping to expand access, with 18 states now offering programs that have helped an estimated 54 million workers begin saving for retirement.

Looking Ahead to 2026

For retirement savers, the key takeaways are clear: consistency matters more than market timing, starting early dramatically improves outcomes, and taking full advantage of tax-advantaged accounts remains one of the most powerful wealth-building strategies available.

With new higher contribution limits, expanded catch-up provisions for those approaching retirement, and markets that have historically rewarded patient investors, the path to becoming a 401(k) millionaire remains achievable for disciplined savers willing to stay the course.