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The number of Americans benefiting from more than a million dollars in a 401 (k) plan has hit a record high, Wednesday announced Fidelity investment company.
A report released by the company revealed that 196,000 Americans now had at least $ 1 million in a 401 (k) plan, up from 180,000 by the end of the first quarter of fiscal year 2019.
The number of Americans with at least a million dollars in IRAs also reached a record, with 179,700 people, up from 168,100 in the first quarter.
The average 401 (k) account in the US is now valued at $ 106,000, up 2% from its average of $ 103,700 at the end of the first quarter, according to Fidelity. The average balance of an IRA account has also increased and now stands at $ 110,400.
Americans are now saving more than ever in their 401 (k) accounts, increasing their average contribution to 8.8% in the second quarter of 2019, and nearly a third of the 401 (k) accounts having increased their contributions this quarter.
Millennials are also contributing more than ever to ARIs as the percentage of Millennials-owned IRAs has increased by 20% since last year, according to the report.
Fidelity's workplace investment manager said the report's numbers were a sign that Americans were taking savings for retirement seriously.
"The record number of workers who raised their 401 (k) contribution rate is an excellent indication of Americans' determination to save for retirement," said Kevin Barry. "Increasing your contribution rate, even by 1%, can make a big difference to your long-term retirement savings. An amount that may seem modest today can have a significant impact on your account balance in 10 or 20 years. "
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