In the event you’re working a full-time 9-to-5 and contributing to a 401(k) plan, now is likely to be a great time to envision in and see what’s been happening with those automatic paycheck deductions.
In accordance with a latest report from Fidelity Investments, many Americans is likely to be surprised to seek out that they’ve earned millionaire status.
Data from the retirement plan company released on Tuesday reveals that in Q4 of 2023, the variety of 401(k) accounts with over $1 million increased 20% quarterly and 41% year-over-year, with an estimated 422,000 accounts falling in this range by the tip of 2023.
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The common account balance for many who made 401(k) millionaire status by the tip of 2023 was $1,551,300 in Q4.
“This past 12 months ended on a high note for retirement savers,” Sharon Brovelli, president of Workplace Investing at Fidelity Investments, told CNN. “On the subject of matters like market stability and economic events, 2023 gave us the highs of the highs, and the lows of the lows but, encouragingly, many retirement savers took the long view and stayed the course through all of it, which is the kind of commitment that may result in a secure financial future.”
The report also found that an estimated 37.2% of employees increased their 401(k) contribution percentage in 2023, with 78% of employees participating in 401(k) planning to contribute at a percentage high enough to match their employer’s full-match contribution.
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The report found that 27% of employees also actively increased their contributions to their 401(k) plans as a substitute of counting on automatic increases or electing to go away their contribution amounts as is.
In accordance with data by the Investment Company Institute, total U.S. retirement assets hit $35.7 trillion in Q3 of 2023, with retirement assets accounting for 32% of all financial assets in U.S. households as of September 2023.