Fidelity saw a 10% increase in millionaires holding 401 accounts to 378,0000 in the second quarter, compared with 340,000 in the first quarter. Among individual retirement accounts , Fidelity reported a 13% increase in millionaires – 349,104 in the second quarter compared with 307,623 in the first quarter.
The total savings rate for the quarter, which reflects a combination of employee and employer 401 contributions, was 13.9%, mirroring the savings rate of the second quarter of 2022. This is slightly lower than first quarter’s 14% rate, but higher than the previous quarters . Fidelity’s suggested savings rate is 15% . Boomers in the workforce continue to save at the highest levels .The total number of IRA accounts rose to 14.
“Investing at a young age not only allows your money the opportunity to grow to a level that will have a major financial impact on your future, but also presents an opportunity to learn about investing, try new things, and ultimately set yourself up for a successful financial future,” Rotenberg said.
In fact, Boomers saving in their 401 plan continuously since 2008 now have an average balance of just under half a million dollars , Fidelity said.Outstanding 401 loans increased slightly, Fidelity said. The percentage of participants with a loan outstanding increased slightly to 17.1% in the second quarter, compared to 16.6% in the first quarter, which was an all-time low. The percentage is also well below the number of outstanding loans observed prepandemic, Fidelity said.