Soaring Market Makes Millionaires of Retirement Savers

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Number of the Day

The Balance

That’s how many IRA and 401k retirement savings accounts managed by Fidelity Investments had balances of $1 million or more in the first quarter—a record high number that’s more than doubled in a year. 

A lot has changed since the stock market dropped precipitously amid the economic crush of the COVID-19 outbreak. In the last year, the benchmark S&P 500 Index has risen more than 40% and the Dow Jones Industrial Average, almost as much. This strong stock performance and consistent contributions by workers and employers have buoyed retirement accounts, Fidelity said in a recent report. 

It also didn’t hurt that the first quarter saw a scramble to make retirement contributions ahead of tax time. The financial services company said the number of retirement millionaires had risen 8% just since the fourth quarter. 

The average IRA and 401k balance reached a record high for the second consecutive quarter, Fidelity said; IRAs averaged $130,000, up from $128,100 in the fourth quarter, and 401ks averaged $123,900, up from $121,500.

Medora Lee contributed to this story.