Millennials have faced numerous challenges in achieving financial stability, including a bleak job market, housing affordability crisis, and crushing student loan debt. However, recent trends suggest that they are finally making strides in building their wealth through 401(k) savings.

A Fidelity Investments report reveals that the number of 401(k) millionaires has reached 645,000, with a 26% increase from the previous year. This growth is attributed to steady worker contribution rates and years of market gains. Interestingly, millennials are now showing up in the 401(k) millionaire club, albeit in small numbers.

While savers aged 29 to 44 represent only 4% of Fidelity’s 401(k) millionaires as of the end of 2025, it’s impressive to see that any have achieved this milestone in their 30s and 40s. With the right approach, it’s possible for others to join them.

Americans have hit record savings rates in 2025, with nearly one in five millennial 401(k) savers increasing their savings rate last year. Employer contribution rates have also reached a record high of $2,080. Millennials now hold an average of $82,600 in their 401(k)s, with balances particularly high among savers who have been continuously funding their accounts for many years.

The average balance for a millennial worker who has been saving in their 401(k) for 15 years has grown to $391,300. This indicates that the average 401(k) millionaire has likely been funding their account for a considerably longer period of time. Given that the oldest millennials are still halfway through their careers and the youngest have the majority of their working years ahead of them, it’s reasonable to assume that the average balance among 28- to 43-year-olds will continue to grow over time.

To become a 401(k) millionaire, it’s essential to save consistently and start early. Fidelity recommends aiming to save 15% of your pre-tax income each year. Millennials are currently close to this rate, saving an average of 14.4% as of earlier this year. Starting to save early can significantly impact the growth of your wealth over time.

Let’s consider a scenario where you contribute $400 a month to a 401(k) over a 41-year period, earning a 7% annual return. In this case, you’ll have put about $197,000 into your workplace plan in total, but thanks to the power of compounded returns, you’ll have grown your balance to just over $1 million. However, if you only contribute $400 a month for 31 years, you’ll have about $490,000 at the same 7% return, highlighting the importance of saving consistently and over many years.

Not everyone can put $400 a month into a 401(k) from the moment they start working. If that’s the case, start slowly and aim to increase your savings rate over time. One good bet is to send your annual raise directly into your 401(k) if you can afford to do so. Additionally, take full advantage of any 401(k) match your company offers, as it’s essentially free money for your future self.

It also pays to diversify your 401(k) investments. While a target date fund may produce reasonable returns, an S&P 500 index fund may deliver stronger returns at a lower cost. You’ll need to make a point to shift over to safer investments in your workplace plan once you get closer to retirement. Working with a financial advisor can help you choose investments that carry an appropriate amount of risk for your age and identify which 401(k) investments are most cost-effective in terms of fees.

Remember that saving for retirement is a marathon, not a sprint. The earlier your contributions start compounding, the sooner seven figures stops looking like someone else’s milestone. With persistence and the right strategy, it’s possible for millennials to crack the 401(k) millionaire club and for others to join them.