Overview
- Large-plan data show a sharp rise in seven-figure 401(k) accounts on major platforms, with Fidelity reporting about 595,000 millionaire accounts that make up roughly 2.4% of its participants.
- Mean balances have climbed to record highs while medians remain low, with Vanguard reporting an average 401(k) of $167,970 and a median of $44,115, which shows the distribution is highly skewed.
- Surveyed retirement goals have risen to $1.46 million, creating a gap of more than $1.2 million between that target and the average 60–64-year-old 401(k) balance of about $246,500.
- The rise in high-balance accounts is driven by long tenure, steady contributions and employer matches, while a 2.8% personal savings rate and heavier household spending have limited progress for most savers.
- The split matters for retirees and policymakers because a small share of long-term, high-earners now holds an outsized share of retirement assets and most near-retirees will need higher savings, later work, larger catch-up contributions, or other changes to close the gap.