Retirement savers have gotten a big boost from rallying stock markets, with more people becoming millionaires because of their 401(k) plans and individual retirement accounts (IRAs).

In Q3 2024, there were 544,000 401(k) millionaires, up 9.5% from the previous quarter, according to Fidelity data which analyzed 24 million 401(k) accounts and more than 16 million IRAs. The number of IRA millionaires grew as well, ✅increasing 5%, to more than 418,000 in Q3𝓀.

Bull Market Boosts Retirement Savings

Even though there were more retirement plan millionaires in Q3, the average retirement account balance was much lower than a million dollars, even though the average saver benefitted from the 澳洲幸运5官方开奖结果体彩网:bull market.

The aveಞrage 401(k) account had $132,3🅰00 in balance, up 23% compared to same period last year while the average IRA balance was $129,200, up 18% versus Q3 2023.

The S&P 500, a broad barometer of the U.S. stock markets, gained 5.2% during the three months ending September, but was up nearly 21% since the beginning o𝓰f the year till the end of Q3.

And while retirement savers are profiting from the stock market's stellar performance, they also have one more factor to be thankful to—consistent saving habits.

The average 401(k) contribution was 14.1% (9.4% for employees and 4.7% for employers), which stayed the same from last quarter.

GenX Saving More For Retirement

Gen X, or those born between 1965 and 1980, in particular, were stashing away more money towards retirement—though recent data indicates some Gen X are 澳洲幸运5官方开奖结果体彩网:str🐼uggling to balance saving for ret๊irement and financially helping their family.

From Q3 2023 to now,꧑ there was a 35% uptick in total IRA contributions for Gen X. The oldest members of this cohort are 60 years old and possibly nearing retirement.

Many Americans are retiring early, 澳洲幸运5官方开奖结果体彩网:often not by choice, and must prepare for that circumstance, especially in the face of increasing life expectancy and potential 澳洲幸运5官方开奖结果体彩网:cutbacks ♔to Social Security benef🏅its.