Who wants to be the next retirement millionaire?
The likelihood that it’s you has reportedly grown by double digits, new data from Fidelity indicates.
More than a third (37%) of U.S. workers increased their retirement savings contribution rate by the end of 2023, the investment firm reported Tuesday, while the number of accounts hitting millionaire status grew by more than 11%.
Fidelity also noted this allegedly marks the highest level for average account balances in two years, while consumers faced decades-high inflationary pressures.
“This past year ended on a high note for retirement savers,” Sharon Brovelli, president of workplace investing at Fidelity, said in a press release.
$1M IN RETIREMENT SAVINGS IS A STRETCH IN THESE BLUE STATES, REPORT SAYS
“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,” she continued, “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.”
Also, by the end of 2023, a notable 78% of 401(k) savers were contributing at a rate high enough to get the employer’s matching percentage.
Despite the positive numbers, a recent Clever study found that 46% of retirees have no plan if their retirement savings run out, while 66% of current retirees say America faces a retirement “crisis.”
Many experts have estimated that a little more than $1 million is enough for comfortable retirement plans, but the exact number depends on each individual’s financial footprint.
Fidelity previously told Fox News Digital that, by age 30, it’s recommended that you have saved at least 1x your annual salary. Then, it’s 3x your salary by 40, 6x by age 50, 8x by 60 and 10x by 67.
“Regardless of what the Fidelity guidelines are, you need to be at a point where you’re comfortable with your asset allocation, you’re comfortable with your contribution rate,” Michael Shamrell, vice president of Fidelity’s workplace investing thought leadership, told Digital while advising a combined savings rate of 15%.
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“These guidelines are applicable to you and your savings journey,” he added, “and again, help you understand what you need to save as a multiple of your salary as opposed to just some dollar amount that’s out there that may or may not be realistic for you,” Shamrell added.
Looking ahead to 2024, the recent Fidelity data signaled retirement plans will likely be considered a valuable benefit, as 22% of global workers report benefits as the key reason for remaining with their employer.