Surging Markets and Steady Savings: The Rise of 401(k) Millionaires

The 401(k) millionaire club is growing, and it's not just the ultra-wealthy who are joining the ranks. According to Fidelity Investments, the number of 401(k)-created millionaires increased by 9.5% in the third quarter of 2025, reaching 544,000 accounts with balances exceeding $1 million. This surge in millionaires can be attributed to a combination of consistent saving habits, market gains, and strategic investment decisions.



Consistent savers reap the rewards
The average contribution rate for 401(k) savers remained strong at 14.1% this quarter, driven by employee and employer contributions of 9.4% and 4.7%, respectively. This steady savings rate is close to Fidelity's suggested savings rate of 15% and reflects the importance of consistent contributions over time. Gen X savers, in particular, have seen their balances grow significantly, with 15-year savers averaging $586,100, up 6% from the previous quarter.

Market gains boost retirement savings
Buoyed by market gains, individuals have been able to reach the millionaire level by starting early and contributing consistently over many years. The median annualized return of 401(k) millionaires was 4.8% over the 12-year period of the study (2000–2012), highlighting the importance of a long-term investment horizon. To replicate this success, investors should maintain a diversified portfolio and stay invested during market fluctuations.

Employer matches and profit-sharing contributions
Employer matches and profit-sharing contributions have played a significant role in helping individuals reach the million-dollar milestone. The average employer contribution was about 5%, which accounted for 28% of contributions in the average 401(k) millionaire's account. On an annual basis, employer contributions boosted the average 401(k) millionaire's savings by almost $4,600. Many of the millionaires also benefited from profit-sharing contributions.

Lessons learned from 401(k) millionaires
To join the ranks of 401(k) millionaires, investors should focus on consistent savings, market gains, diversification, and employer matches. By following these strategies, individuals can build a substantial retirement nest egg over time. As the number of 401(k) millionaires continues to grow, it's clear that steady saving habits and strategic investment decisions can lead to significant financial success.