- ORIGINAL NEWS
401(k) millionaire ranks grew 11.5% in 2023. They are ‘poster children for staying the course,’ expert says
- SUMMARY
In 2023, retirement savings in 401(k) accounts saw substantial recovery after a challenging 2022.
The average 401(k) balance rose 14% to $118,600, and retirement accounts with $1 million or more grew by 11.5%.
This rebound was aided by improved savings habits and strong growth in major stock indices.
Despite inflation, over a third of workers increased their retirement plan contributions.
However, account withdrawals for various reasons also increased.
Financial experts advise leveraging 401(k) loans over high-interest credit cards during financial hardship but emphasize the importance of long-term savings goals.
- NEWS SENTIMENT CHECK
- Overall sentiment:
positive
Positive
“Retirement account balances, which took a sharp nosedive in 2022 due to market volatility, have now started to bounce back, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.”
“A great year for the major indexes also helped. The Nasdaq soared 43% in 2023, while the S&P 500 notched a 24% annual gain and the Dow Jones Industrial Average rose more than 13%.”
Negative
“The percentage of workers who took a loan from their 401(k), including for hardship reasons, ticked up to 8.9%, from 7.8% at the end of 2022.”
“Across all ages and income levels, more than one-third of adults have more credit card debt than emergency savings, according to a recent report by Bankrate.”