The number of 401(k) accounts managed by Fidelity Investments with at least $1 million in savings hit a record high of 769,000 in the second quarter of this year, according to the investment company. This marks a 19% increase from the first quarter, fueled by a strong stock market and record-high employee contributions. Fidelity oversees 25.8 million 401(k) accounts overall, meaning about 3% of these accounts now have balances of $1 million or more. Michael Shamrell, vice president of thought leadership at Fidelity Investments, explained that many of these "401(k) millionaires" are older workers who have consistently saved over decades. However, Fidelity does not emphasize the $1 million milestone, as retirement needs vary significantly between individuals. Instead, the company encourages examining how these top savers reached their goals to help others plan for their own retirement. The average contribution rate to 401(k) accounts in the second quarter remained at a record high of 9.6%. Even with rising living costs—such as higher gas prices, grocery bills, and utility expenses—workers continue to prioritize their retirement savings. This trend suggests a strong commitment to long-term financial security despite current economic challenges. The stock market has performed strongly, with the S&P 500—often used as a benchmark for U.S. stock performance—rising 15% over the three months ending June 30. Over the past year, the index gained 20%, and over five years, it climbed about 71%. Investors have largely ignored concerns like inflation and geopolitical tensions, instead focusing on corporate profit growth. This growth has been driven by strong demand for artificial intelligence and tax incentives from recent legislation. Despite the record number of 401(k) millionaires, a survey by financial services company NFP found that 72% of workers feel they are behind on their retirement savings. The average balance in Fidelity’s 401(k) plans was $155,800 as of June 30, significantly lower than the $1 million threshold. Workers remain worried about inflation and rising living costs, but some feel more optimistic about their personal financial situation, possibly influenced by the positive retirement savings trends. About a third of those surveyed reported feeling really good or very positive about their personal finances.