Who Wants to Be a Millionaire?

Had someone told me at the time of my high school graduation that one day I would have a retirement savings in excess of $1 million and a house worth nearly that, I most likely would have envisioned myself becoming a titan of industry or at the very least, a fortunate beneficiary of some unknown ultra-rich uncle.

For those keeping score at home, sadly neither of those two scenarios came to pass.

However, on a brighter note, I have put away more than I ever could have envisioned back then, although as most of you know $1 million ain’t what it used to be. So, retirement in a warmer climate and endless games of pickleball will have to wait a while longer.

Along those lines, I recently read where the number of 401(k) accounts carrying balances of at least $1 million at Fidelity Investments ballooned 84 percent year over year to some 412,000 while IRAs with a comparable seven-figure balance spiked 64 percent to 341,000.

Overall, the average balance of 401(k)s grew 24 percent from the year-ago period to $129,000, while IRAs showcased a 21 percent gain to $139,000.

More than 18 percent of Baby Boomers of which the youngest is now 57 (think about that for a second!) made the $6,500 “catch up” contribution allowed for those over 50 in addition to the $19,500 annual limit currently allowed.

Employees with longer tenures at their respective companies tended to have the highest retirement savings balances. The average balance for employees who had been in their company plan for 10 years broke the $400,000 level for the first time in 2021’s second quarter, rising to $402,700.

Although 401k) s have been in existence since 1981, I was not employed at a company that offered such a plan until 1990, two years after I was married and expecting a child, so funds were rather tight. Still, I managed to put away what I could.

And we’ve all heard the horror stories of folks who put off saving and were left with little else than Social Security in their golden years.

By contrast, my daughters were offered savings plan from day one of their respective employment and I told them in no uncertain terms to jump in. Fortunately, this was one of the few times they actually listened to me. And thus far they have managed to accumulate some impressive balances for their age.

Sometimes father does know best.