2025 didn’t get off to a hot start for investors, but fortunes have changed dramatically in the third quarter.

Data from Fidelity (1) revealed record highs across its 52 million retirement products, including 401(k)s and IRAs.

Currently, the average 401(k) balance is $144,400, while the average IRA balance is $137,902. For context, that’s up 20% and 17%, respectively, from the third quarter of 2020.

The number of 401(k) and IRA millionaires also increased by 10% and 11.5% between the second quarter and the third quarter, respectively. Fidelity reports that there are 654,000 401(k) investors and 559,181 IRA investors in this high net worth category.

Here’s what this surprising news has to say about the state of the economy, plus some tips on how to maximize your own contributions so you, too, can reach millionaire status.

Although the record highs in the US stock market While they certainly affected those numbers, Fidelity’s data suggests positive savings trends played a role.

In particular, 401(k)s take a look at the current employer-employee relationship.

Fidelity found that the contribution rate for 401(k)s remained at 14.2% in the third quarter. That’s just shy of its ideal range of 15% and suggests strong company support and investor resistance despite market volatility.

Another encouraging trend is the increase in Roth 401(k) contributions from younger generations. About 20% of Gen Z and 19% of millennials now choose Roth 401(k)s.

Unlike traditional 401(k), Roth accounts do not offer tax breaks for contributions, but reward long-term holders with tax-free withdrawals. Therefore, the increased interest in these accounts shows that the younger generations are thinking long term.

This trend toward Roth accounts also extended to IRAs, with 95% of Gen Zers investing in a Roth IRA.

While IRAs don’t offer as high contribution limits as 401(k)s, they do offer holders greater customization over their investment decisions.

Also, with the 2026 adjustments, it will be even easier for long-term investors to put their money to work in any account.

To adjust for inflation, the IRS announced an increase in contribution limits to $24,500 for 401(k)s (previously $23,500) and $7,500 for IRAs (previously $7,000). Catch-up IRA contributions for those over 50 also rose to $1,100 from $1,000 a year ago. (2)

These higher contribution rates make it possible for anyone with a 401(k) or IRA to grow their positions faster than before.

Read more: This is it the quiet portfolio switch many wealthy investors are making in 2026. Should you also consider it?

If the growing number of 401(k) and IRA millionaires proves anything, it’s that wealth often comes from patience and consistency. Even in a choppy economy, there are smart, steady moves anyone can make to step up their retirement game.

For starters, if an employer offers a match, never leave that money on the table. Increasing your employer match contribution can add tens of thousands of dollars to your balance over time.

Automatic increases (also known as automatic escalation) are another engine that propels people into retirement millionaire status. Consider using this tool to automatically increase contributions by 1% each year, ideally scheduled after annual increases so you barely notice the change.

It’s also worth investigating whether a Roth IRA could increase your total retirement net worth. The advantage of using a Roth IRA is that the taxes are taken care of upfront.

However, this does not necessarily mean that skipping tax deductions always leads to more wealth. It all depends on your income tax bracket and how you think it will change in retirement.

The easiest way to calculate the advantages or disadvantages of using a Roth IRA is to use one Roth IRA vs Traditional IRA Calculator. With this tool, you can enter details like your age, contributions and income to get an idea of ​​how taxes affect your savings in both scenarios.

And don’t feel too bad if you’re “late” to saving or stopped earlier in life. Remember, the IRS allows you to make catch-up contributions after 50 to accelerate your balance.

That extra money can help you join the ranks of the other retirement saving millionaires.

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fidelity (1); IRS (2).

This article provides information only and should not be construed as advice. It is provided without any warranty.