“Own assets or be left behind” — Investors are getting the memo as 401(k) millionaires surge
Retirement savers aren’t waiting for Washington. With Social Security’s future growing shakier and the labor market increasingly unpredictable, Americans are taking retirement planning into their own hands — and many are seeing results.
According to new data from Fidelity Investments, the number of 401(k) accounts with balances of at least $1 million rose 10% in the third quarter to 654,000. IRA accounts with at least $1 million climbed 12% to 559,000.
Since the start of 2020, the number of 401(k) millionaires has more than quadrupled.
Even savers far from the seven-figure mark are benefiting. Average 401(k) balances rose 9% year over year to a record $144,400, while average IRA balances increased 7% to $137,900 — also a record.
Employer matching continues to play a major role in these gains. Many companies contribute additional money to workers’ 401(k)s — often 3% to 6% of salary — effectively offering a guaranteed return that employees forfeit if they don’t contribute at least enough to receive the full match.
The Fidelity data aligns with separate research from InvestorsObserver showing that more Americans are prioritizing retirement planning, with younger generations turning to different strategies than their parents as they confront signs of a more challenging financial future.
These savers are continuing to put money aside despite inflation, tariff uncertainty, and broader economic concerns.
“Own assets or be left behind”
Market commentator The Kobeissi Letter weighed in on the data, urging savers to “own assets or be left behind.”
The number of retirement account millionaires is surging:
undefined The Kobeissi Letter (@KobeissiLetter) December 10, 2025
The number of 401(k) accounts with balances of $1 million or more rose +10% QoQ, to a record 654,000 in Q3 2025, according to Fidelity.
IRA accounts with at least $1 million jumped +12%, to a record 559,000.
Since Q1… pic.twitter.com/4GOF7CCaV4
The remark reflects an inflationary environment in which purchasing power has eroded as stock markets continue to climb, effectively penalizing traditional savers who keep most of their money in cash.
In this backdrop, Americans who rely heavily on Social Security risk falling further behind, as the cost of living rises faster than government benefits can keep up.
The broader data support this point. Regardless of market conditions — bull, bear, or concerns about stretched valuations — investors who stay invested tend to come out ahead compared with those who sit on the sidelines.
“Since 1989, money invested when the market is at [an] all-time high has actually outperformed money invested on any given day,” said Peter Mallouk, a financial adviser at Creative Planning.
Mallouk’s data shows that the S&P 500 has delivered average five-year returns of 82% when investors bought at all-time highs, compared with 74% for purchases made on any random day.
In other words, even when markets look expensive, as many argue they do today, the evidence suggests it is still better to invest than to try to time the market.