In 2025, 654,000 Fidelity clients reached millionaire status in their 401(k) accounts, a new high for the firm. Other financial institutions also reported a significant increase in 401(k) millionaires compared to 2022. UBS identified this emerging group as “everyday millionaires,” totaling 52 million globally.

While stock market gains contributed to the rise in 401(k) balances, consistent contributions played a key role. Vanguard data showed a 10% increase in account balances due to 45% of holders increasing their contributions in 2024. However, these numbers don’t reflect the overall retirement preparedness of Americans.

Research from SCEPA revealed concerning trends in retirement savings. A significant percentage of near-retirement individuals feel unprepared financially, while many working-age households are at risk of a decline in living standards post-retirement. Despite more 401(k) millionaires, elder poverty remains a prevalent issue in the U.S.

To improve retirement readiness, SCEPA suggests implementing federal policies like Guaranteed Retirement Accounts and enhancing Social Security benefits. Planning for future expenses and adjusting savings rates accordingly can help individuals achieve financial security in retirement. While the number of 401(k) millionaires is on the rise, most Americans are still far from reaching that milestone.

Read more at Yahoo Finance: While the number of 401(k) millionaires is up, 40% of households are at risk of a lower standard of living in retirement