Aug 19, 2026
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Add us on GoogleEver since coming of age in the wake of the 2008 financial crisis, millennials have struggled to get ahead. Whether facing a bleak job market, a housing affordability crisis, or dealing with crushing student loan debt, this generation has overcome a great deal to find their financial footing.
But lately their efforts have been paying off, albeit slowly. A Fidelity Investments report from earlier this year shows the number of 401(k) millionaires reached 645,000. That’s a 26% increase from the year before, which Fidelity attributes to both steadier worker contribution rates and years of market gains. And millennials are finally showing up in that club, even if only in small numbers so far.
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While savers aged 29 to 44 represent roughly 4% of Fidelity’s 401(k) millionaires as of the end of 2025, the fact that any have gotten there in their 30s and 40s is impressive. And with the right approach, you can, too.
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401(k) millionaires on the rise
Americans hit record savings rates in 2025, according to Fidelity’s latest retirement analysis. Nearly one in five millennial 401(k) savers managed to increase their savings rate last year — while employer contribution rates clocked a record high of $2,080.
Another Fidelity analysis reviewing Q2 data shows millennials now hold an average $82,600 in their 401(k)s.
Meanwhile, balances are particularly up among savers who’ve been continuously funding their 401(k)s for many years. The average balance for a millennial worker who’s been saving in their 401(k) for 15 years grew to $391,300. This tells us that the average 401(k) millionaire has likely been funding their account for a considerably longer period of time.
Among millennials, the average 401(k) balance now sits at $82,600. Given that the oldest millennials are still just halfway through their careers and the youngest have the majority of their working years ahead of them, it’s fair to assume that the average balance among 28- to 43-year-olds will continue to grow over time.
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How to become a 401(k) millionaire yourself
Becoming a 401(k) millionaire may be more feasible than you’d think. Fidelity (and many other financial experts) recommend aiming to save 15% of your pre-tax income each year. Currently, millennials are coming very close to that rate, saving an average 14.4% as of earlier this year.
But even more important than how much you’re saving is how consistently you’re saving. And, if you haven’t missed that boat already, starting young.
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Let’s say you’re able to earn a 7% annual return in your 401(k), which is reasonable among many target date funds (a common “set it and forget it” type of investment found in these workplace retirement plans). If you contribute $400 a month to a 401(k) over a 41-year period, you’ll be putting about $197,000 into your workplace plan in total. But thanks to the power of compounded returns, at 7%, you’re looking at growing your balance to just over $1 million.
The numbers don’t look as rosy if you only contribute that $400 a month for 31 years, though. At the same 7% return, you’re looking at about $490,000, which highlights the importance of saving consistently and saving over many years.
Of course, not everyone can put $400 a month into a 401(k) from the moment they start working. If that’s the case, start slowly and aim to increase your savings rate over time. One good bet is to send your annual raise directly into your 401(k) if you can afford to do so.
It also pays to take full advantage of any 401(k) match your company offers. That’s as close as it gets to free money for your future self.
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Finally, don’t play things too safe in your 401(k). A target date fund may produce reasonable returns, but an S&P 500 index fund may deliver stronger returns at a lower cost to you in terms of fees. You’ll just need to make a point to shift over to safer investments in your workplace plan once you get closer to retirement.
In fact, it’s not a bad idea to work with a financial advisor to manage your 401(k). They can help you choose investments that carry an appropriate amount of risk for your age so you’re not shorting yourself on returns. They can also help you identify which 401(k) investments are most cost-effective in terms of fees that could eat away at your returns if you aren’t careful.
In fact, it's not a bad idea to work with a financial adviser to manage your 401(k). They can help you choose investments that carry an appropriate amount of risk for your age so you're not shorting yourself on returns. They can also help you identify which 401(k) investments are most cost-effective in terms of fees that could eat away at your returns if you aren't careful.
Just remember: None of this happens overnight. "Saving for retirement is a marathon, not a sprint," says Mike Shamrell, vice president of thought leadership at Fidelity. But the earlier your contributions start compounding, the sooner seven figures stops looking like someone else's milestone.
— with files from Sigrid Forberg
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
