Record 665,000 Americans hold $1M+ in their 401(k)

Fidelity and Vanguard reported new highs for retirement savers at the end of 2025, even as stocks and other risk assets have softened in recent days following a weekend strike on Iran by Israel and the United States.

Fidelity put the number of 401(k) millionaires at 665,000 in the fourth quarter of 2025, up from 654,000 in the prior quarter. Vanguard, previewing year-end figures, said average participant balances climbed 13% from 2024 to a record $167,970 at the close of 2025, with the median at $44,115, up 16%.

Both firms linked the rise in balances to steady saving and investment gains. Fidelity noted that many millionaire accounts have been open for about 25 years or longer, reflecting consistent contributions and growth across market cycles. Millennials accounted for 4% of retirement-account millionaires. Fidelity reported $17.5 trillion in assets under administration.

Market performance supported the gains. In 2025, the S&P 500 rose 16%, international equities advanced 32%, and the U.S. bond market increased 7%. More recently, global markets have weakened after the weekend strike on Iran.

Times like this can be concerning. In general, we encourage people not to make changes to their long-term strategies to react to short-term issues”, Mike Shamrell, vice president of thought leadership at Fidelity, stated.

Fidelity’s average 401(k) balance reached $146,400 in the fourth quarter, up more than 11% from a year earlier, with a median of $34,400. The average 403(b) balance rose 13% to $133,500, with a median of $33,270. IRA balances increased 7% to an average of $137,095, with a median of $10,476. The total savings rate in Fidelity-administered 401(k)s held at 14.2% for a third straight year, including a 9.5% employee contribution and a 4.7% employer contribution. Vanguard did not provide a total savings rate.

Generation X participants, born between 1965 and 1980, recorded an average total savings rate of 15.4%, above Fidelity’s 15% guideline. More workers in this group are using catch-up contributions. For 2026, the standard catch-up limit for 401(k) and 403(b) plans for those 50 and older rises to $8,000, on top of a base contribution limit of $24,500.

Vanguard reported strong use of enhanced catch-up features. For workers ages 60 to 63, the “super catch-up” allowed contributions up to $11,250. When that option was available, 13% of eligible participants contributed above the standard $7,500 catch-up cap.

Automation continued to lift saving. Vanguard said 14% of participants increased their savings or payroll deferral rates in 2025, while 8% reduced them. Automatic escalation raised deferral percentages for 31% of participants during the year, helping nearly half boost their savings rate at some point. Investment choices remained streamlined, with nearly two of every three dollars contributed going to target-date funds, which reduce stock exposure as the target retirement year approaches.

Loan usage in defined contribution plans was steady, with 13% of participants holding a loan at the end of 2025, in line with 2024. Hardship withdrawals ticked up to 6% of participants in 2025 from 5% in 2024. Vanguard linked the increase to regulatory changes that eased access to hardship withdrawals and ongoing pressure on household budgets.

Fidelity’s profile of 401(k) millionaires highlights the impact of time in the market, consistent contributions, and diversified allocations. The firm noted that most of these accounts have been open for roughly 25 years or more.