How Over 500,000 Americans Became Millionaires Last Year

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Recent stock market gains driven by investments in technology and the rise of artificial intelligence have propelled more retirement savers to millionaire status. According to two new studies, wealthy American investors are outpacing their global counterparts in accumulating wealth at a rapid pace.

A report released by Fidelity Investments reveals that in the first quarter of 2025, there were 512,000 401(k) millionaires with an average account balance of $1.6 million. This marks a significant increase from five years ago, despite a slight drop in the number of millionaires due to market volatility.

The surge in stock market gains has also contributed to the wealth accumulation of high-net-worth individuals globally. A report by consulting firm Capgemini shows that individuals with $1 million or more in investable assets had a prosperous year in 2024.

A notable growth in the population of wealthy investors was observed in the U.S., with an 8% increase in numbers and a 9% growth in wealth compared to the previous year. The report estimates that there are now 7.9 million millionaires in the U.S.

While high-net-worth individuals in other parts of the world also experienced wealth accumulation in 2024, American investors generally fared better than their overseas counterparts. The global population of high-net-worth individuals grew by 2.6% in 2024, with a 4.2% increase in total wealth.

The exponential growth in technology and AI investments played a significant role in driving stock market gains in 2024, with notable increases in major indices like the S&P 500 and Nasdaq. Tech stocks, including industry giants like Alphabet, Amazon, Apple, and Microsoft, were key contributors to these returns.

The wealthiest individuals saw the greatest gains, with those holding over $30 million experiencing a 6.2% increase in numbers and a 6.3% growth in wealth. Affluent investors also demonstrated a shift towards more aggressive investing practices, increasing their exposure to equities and digital assets like cryptocurrencies.

Capgemini’s report highlighted the impact of interest rate cuts and evolving investment strategies on wealth accumulation among the rich. Affluent investors are increasingly diversifying their portfolios and exploring alternative investment options to capitalize on market trends.