Record average account balances in the nation’s 401(k)s have translated into a surge in retirement savers who can now consider themselves millionaires.
New data from Fidelity Investments shows about 72,000 workers have $1 million or more parked in 401(k) plans, twice as many in 2012 and five times as many as a decade ago.
Half of 401(k) millionaires had balances between $1 million and $1.25 million at the end of 2014, 39% held between $1.25 million and $2 million, and 9% of accounts held more than $2 million.
The record amount of millionaires, and record account averages for all savers of more than $91,000, is explained in part by strong market returns.
But year-over-year contribution rates also increased by 4%, to an average of $9,670. When factoring employer matches, the average savings rate for all participants was 12.2% of salary in 2014.