A new report from Fidelity found that the number of 401(k) millionaires plunged by 32% in the last year.
At a time of the disappearing pension, the 401(k) is for most workers the main source of old age security. Almost any financial planner will be on you to start putting away as much as possible early and resist temptation to take anything out prematurely (even if a recently-signed retirement bill will soon waive the 10% penalty for those who need to withdraw $1,000 a year due to economic hardship.)
But while saving is always better than not saving, one's financial situation also hinges heavily on the economy at the exact moment one needs to start tapping into those funds. According to the latest data released by Fidelity Investments, 2022 was so turbulent that the number of people with over $1 million in its accounts dropped by 32% from 442,000 in 2021 to 299,000 in 2021.
Veronika Bondarenko | The Street