How many Americans are 401(k) millionaires? How to kick-start your savings

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

A 401(k), an employer-sponsored retirement plan with tax benefits, is one of the most popular ways Americans save for their golden years.

Collectively, they hold almost $9.3 trillion in assets for 70 million participants (active and retired), according to Q2 2025 figures from the Investment Company Institute (1).

Must Read

• Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how

• Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP

• Approaching retirement with no savings? Don’t panic, you're not alone. Here are 6 easy ways you can catch up (and fast)

The average balance in these accounts is $127,100, according to Fidelity's Q3 2025 retirement analysis report (2). The highest average balance is seen among American baby boomers, those born between 1946-1964, at $267,900 (3).

It may not surprise you to learn, therefore, that few Americans have a balance topping $1 million in their 401(k) workplace retirement plans. But those who have reached that milestone no doubt worked hard to get there. And with proper planning, you can, too.

A small percentage of savers

According to Fidelity, only 595,000 individuals are 401(k) millionaires in Q2 2025 of survey participants (4).

But there’s a reason this number is so small. Building wealth for retirement takes effort and time. And if you don’t start early, you might really struggle to catch up.

Seeking professional help from a qualified financial advisor can be a game-changer when it comes to managing your money, offering guidance on investing, budgeting, tax strategy and more.

Advisor.com is an online platform that matches you with a vetted financial advisor suited to your needs.

Once you’re matched with an advisor, you can book a free consultation with no obligation to hire.

What it really takes to build wealth

People who retire with $1 million or more tend to start working toward that milestone early on in their careers. If this is your retirement goal, then one of the most important things you can do is start funding an IRA, 401(k), or another dedicated investment accountat a young age.

Even small, consistent contributions can grow significantly, thanks to compound interest. On the contrary, waiting too long could mean missing out on valuable years of growth.

For example, if you start saving at 25 with a $420 monthly contribution and a 7% return, you'll have over $1 million by age 65. But watch what happens when you wait until age 35 to start saving that money. Assuming the same monthly contribution and return, you're looking at roughly $476,000 — losing over $500,000 in potential retirement wealth.

One of the easiest ways to start this habit is by automatically investing your spare change with Acorns.

The app rounds up the price of your everyday purchases to the nearest dollar and invests the difference into a diversified portfolio. This means that every transaction — from your morning coffee to grocery shopping — contributes to building your retirement nest egg.

Sign up now with a recurring contribution and you can get a $20 bonus investment.

Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)

Live below your means

Living below your means is one of the most powerful financial habits you can adopt, helping you to save, invest and prepare for life’s unexpected challenges. One often overlooked way to cut costs is by revisiting your insurance policies — whether it’s auto, home, or pet insurance.

OfficialHomeInsurance.com takes the hassle out of insurance shopping. In just under 2 minutes, you can explore competitive rates from top insurance providers and save an average of $482 per year on your plan.

Home insurance premiums aren’t the only thing coming out of homeowners' pockets. Car insurance rates rose an average of 16.5% in 2024, according to ValuePenguin.

OfficialCarInsurance.com lets you compare quotes from trusted brands, including Progressive, Allstate and GEICO, to make sure you're getting the best deal.

You can find deals starting at just $29 per month.

You May Also Like

• Does Class B real estate have a place in your portfolio? Rich investors think so — here’s why, and how it could work for you

• Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and ‘anyone’ can do it

• Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’

• This top market strategist reveals the market trends you can’t ignore — and how to position your portfolio to stay ahead in 2026

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Investment Company Institute (1); Fidelity (2); Fidelity Q3 2025: Building Financial Futures Report (3); Fidelity (4)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.