The number of retirement accounts reaching the $1 million threshold increased by 11% last year, while 37% of American workers upped their retirement savings contribution rate during the year, according to a report from Fidelity.
“This past year ended on a high note for retirement savers,” said Sharon Brovelli, president of workplace investing at Fidelity, in a press release. “When it comes to matters like market stability and economic events, 2023 gave us the highs of the highs, and the lows of the lows, but encouragingly, many retirement savers took the long view and stayed the course through it all, which is the type of commitment that can lead to a secure financial future.”
The average retirement account balance is now at the highest it’s been in two years, despite recent soaring inflation. The report also noted that more than three-quarters of 401(k) participants contributed enough to get a matching percentage from their employer.
Experts say that just over $1 million is sufficient for retirement plans, though it varies from person to person. However, a recent study from Clever found that nearly half of retirees don’t have a plan for what happens if their retirement funds run out.
