Millionaires pension accounts increase at Fidelity

The number of people with 401 (k) and IRA balances exceeding $ 1 million broke a record in the second quarter.

According to USA Today, the number of investors owning at least $ 1 million in their 401 (k) accounts at Fidelity has reached 196,000.

This is up from 180,000 in the previous quarter.

IRA millionaires went from 168,100 to 179,700.

Investors recovered the money they had lost by the end of 2018.

Average account balances also increase for 401 (k) and ARIs by 2% and 3% respectively.

Gains in the stock market were beneficial, with Dow Industrials up 2.6% and the S & P 500 up 3.8%.

The report says that another factor contributing to improving balances is the fact that employers automatically enroll new employees in the company's pension plans.

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Employers also raise the default contribution rate to 6% or more, although most companies set it at 3%.

Workers also contribute more to their accounts.