The number of Americans with more than $ 1 million in a 401 (k) plan has reached a record high on Wednesday, according to Fidelity.
A report released by the company showed that 196,000 Americans now have at least $ 1 million in a 401 (k) plan of 180,000 by the end of the first quarter of fiscal 2019.
The number of Americans with At least $ 1 million in IRAs also hit a record 179,700 this quarter, compared to 168,100 in the previous year's first quarter.
The US average 401 (k) account is now valued at $ 106,000, an increase of 2 percent, compared to $ 103,700 at the end of the first quarter, according to Fidelity. The average account balance of an IRA account also rose and now stands at $ 1
Americans are now saving more than ever on 401 (k) accounts, with the average premium rising to 8.8 percent in the second quarter of 2019, nearly one year. One third of the 401 (k) accounts are up in the quarter.
Millennials are also contributing more than ever to IRAs, with the proportion of IRAs owned by millennials increasing by 20 percent since last year, according to the report.
According to Fidelity's Head of Workplace Investing, the numbers in the report were a sign that Americans took retirement seriously. Americans save on retirement, "said Kevin Barry. "Increasing your contribution rate by one percent can make a big difference to your long-term retirement savings, and what seems like a small amount today can have a significant impact on your balance in 10 or 20 years."