America's ranks of retirement fund millionaires are surging, with the number of 401(k) accounts managed by Fidelity Investments holding at least $1 million surging to a record 769,000 in the second quarter.

The number of 401(k) millionaires jumped 19% between the first and second quarters, lifted by a bullish stock market and by record average employee contribution rates, the investment company said. About 3% of Fidelity's 25.8 million 401(k) accounts have balances of at least $1 million.

The growing number of 401(k) millionaires highlights the combination of long-term saving and rising financial markets. Still, million-dollar retirement accounts remain rare, while nearly seven in 10 workers doubt they will be able to retire comfortably, according to a recent survey from financial services company NFP.

"It's how they did it"

Many 401(k) millionaires are older workers who have saved consistently for decades, Michael Shamrell, vice president of thought leadership at Fidelity Investments, told CBS News. He noted that Fidelity doesn't like to emphasize the $1 million milestone because retirement needs vary from person to person, and some might feel that achieving it is beyond their grasp.

"We don't want people to think that, 'OK, this is what you should aim for, this is what you're going to need,' because everybody's different, and so you know some might need more, some might need less," Shamrell said.

Instead of focusing on the milestone, it's more important to examine how top retirement savers reached $1 million or more, as this can help outline a path to saving for old age, he said.

"It's not that they have reached that — it's how they did it," Shamrell said. "What was their behavior? One is just saving for a long time."

Workers are also continuing to put money away for retirement even in the face of financial pressures from higher gas prices, rising grocery costs and mounting utility bills. The average 401(k) contribution rate in the second quarter remained at a record high of 9.6%, according to Fidelity's data.

"We're really encouraged because, despite a lot of the things that have happened throughout 2026, we're seeing consistent savings rates," Shamrell said. "We're not seeing people pull back on how much they're contributing to their 401(k)s."

Riding the bull

Employees may be more enticed to sock away money when the stock market is on a tear, as it was in the second quarter. The S&P 500 gained 15% in the three months ended June 30. The broad-based index has jumped 20% over the last 12 months and roughly 71% over the last five years.

Investors have mostly looked beyond the headwinds facing the economy, ranging from persistent inflation to geopolitical tensions, to focus on strong corporate profit growth. Feeding into those earnings is the booming demand for artificial intelligence and tax breaks enacted last year under the Republicans' "big, beautiful bill."

Notably, however, the record number of 401(k) millionaires doesn't appear to be shoring up Americans' confidence about their retirement prospects. NFP's survey found that 72% of workers reported lagging behind on their retirement savings.

For most workers, meanwhile, $1 million remains a distant goal. The average Fidelity 401(k) plan balance was $155,800 as of June 30, while the average 403(b) balance was $145,000. The average IRA balance was $144,523.

Such figures may help explain why workers can feel uneasy about retirement even when stocks and account balances are rising.

Fidelity found that workers remained concerned about inflation, the cost of living and geopolitical turmoil, although their outlook improved when the wealth management firm shifted the question from the broader environment to their own finances.

"About a third of people surveyed felt really good, very positive about their personal financial situation," Shamrell said. That is "possibly due to the positive retirement numbers that we're seeing."