401(k) “millionaires” hit an all-time high
TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and how people are growing their 401(k) accounts to seven figures.
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00:00I'm Conway Gittins reporting from the New York Stock Exchange.
00:02Here's what we're watching on the street today.
00:04Stocks are coming off a losing Thursday on Wall Street, with the Dow posting its worst
00:08session in over a year, thanks to a steep drop in Boeing shares.
00:13This came after the company said it would delay plane deliveries.
00:16While U.S. markets will be closed for Memorial Day on Monday, investors have a busy week
00:20ahead with a lineup of Fed speakers and a key inflation gauge due Friday.
00:25This will be crucial ahead of the central bank's June meeting.
00:29In other news, a record number of Americans will be able to call themselves millionaires
00:34— well, when they retire, at least.
00:36According to a new report by Fidelity, there are now more 401k contributors than ever with
00:42a seven-figure balance.
00:44485,000 people have an account balance of $1 million or more — that's 43 percent more
00:49than there were just 12 months ago.
00:52Fidelity says that record-high contribution levels, along with overall bullish market
00:56conditions, helped balances reach their highest level since the end of 2021.
01:01The firm also said it pays to play the long game, saying, quote, "...long-term savers
01:06observe the greatest improvement, which is good news, especially for the more than 4.9
01:11million workers that have been in their 401k plans for five years or more."
01:16For the average account with over $1 million in retirement savings, Fidelity revealed the
01:21account holders have been saving for 26 years and contributing 17 percent of their income.
01:28Fidelity's report also revealed the average balance for the 401k millionaires is $1.58
01:33million and the average savings rate for all 401k contributors, including employer matches,
01:39is at a record 14.2 percent.
01:43Retirement experts say the recommended savings rate is 15 percent.
01:47It is important to note, as one retirement expert recently told us, only half of all
01:51American households have employer-backed retirement accounts.
01:55And that'll do it for your daily briefing.
01:56From the New York Stock Exchange, I'm Conway Gittins with The Street.