I’ll be turning 67 soon. I’d love to be able to retire on my birthday. I’d celebrate by spending the afternoon at the mall with my daughter and then start planning little trips to visit relatives.
But even after 22 years of working for Walmart, our nation’s largest employer, I can’t afford to retire any time soon.
Walmart does offer a 401(k) with matching funds. But with a high-deductible health plan and at my wage of just $16.83 an hour, I haven’t been able to save much at all for what should be my “golden years.”
Lots of my fellow Walmart associates are in the same boat. I know this from talking to my co-workers — and because companies have to report how many employees have zero balances in their 401(k) plans. At Walmart, 46 percent have not one dime in their accounts.
The situation for my top boss, Walmart CEO Doug McMillon, could not be more different. Would you believe he has more than $169 million in his company retirement account?
These huge gaps are not even unusual.
I just read a new report by the Institute for Policy Studies and Jobs With Justice. They list 22 executives who are set to get monthly retirement checks worth more than what their typical workers make in an entire year.
What’s more, these so-called “top hat” accounts are allowed to grow to massive proportions tax-free — far beyond what any of their workers could legally contribute to a 401(k).
That is, if workers could afford to contribute in the first place. At most of the companies on this list — including Hyatt, Home Depot, Target, Chipotle, Tyson Foods, McDonald’s, and Petco — more than a third of employees with 401(k) plans have zero balances.
It’s just not right for CEOs to have such huge nest eggs while many of their employees have to put off retirement. Seriously — who’s really putting the sweat and blood into these companies? Without frontline workers like my coworkers and me, there would be no profits for those CEOs.
Walmart founder Sam Walton understood this. He’s often quoted saying, “If you want the people in the stores to take care of the customers, you have to make sure you’re taking care of the people in the stores.”
What can CEOs do to take care of their frontline workers? They need to raise wages, give us at least two weeks paid leave, and ensure we have affordable health care benefits. That way workers can stay healthy, put food on our tables, keep roofs over our heads — and save money for retirement.
CEOs and other high-earners should also contribute more to Social Security so we can expand benefits for low-income families.
Right now people making more than $1 million a year stop paying the payroll taxes that fund this critical retirement benefit in February. They should pay all year like the rest of us. And Congress should scrap those tax-free executive retirement accounts and put the savings into Social Security.
I don’t have big fantasies for my retirement — no sailing around on yachts or staying at fancy resorts. What’s really important to me is my family.
I’ve missed so many holidays and other gatherings over the years because I had to work. Now I’d simply like to make up for that by spending more time with relatives, including my grandson, who just graduated from college.
In the world’s richest country, it doesn’t seem like a lot to ask.
Cynthia Murray is a Walmart Associate in Maryland and a board member of United for Respect, a nonprofit labor advocacy organization.
Anonymous says
With this economy, no one can retire. My husband is 70 and is working full time because SS alone and his investments isn’t enough these days.
Karen says
I totally agree. I retired in 2021. Had my budget planned. Biden destroyed the economy. Now I’m sorry I retired. I can’t work to make up the difference due to the income limit they impose on you. SMH
Sherry says
@Karen- So. . . you were actually completely set up for your many years of retirement 2 years ago. Let’s see, the Dow Jones is up about 10% since then. Here is a comparison of economic indicators for the past several Presidents. . . no where does “credible facts” show that President Biden “destroyed the economy”. In fact, it appears those words were lifted directly from FOX right winged BS propaganda. . . especially since others have used the exact same words. Do take a good read, change the channel and start thinking independently.
https://finance.yahoo.com/news/economy-performed-under-president-since-120038478.html#:~:text=Jimmy%20Carter%20(1977%2D1981)&text=But%20he%20also%20had%20the,the%20third%2Dhighest%20unemployment%20rate.
Brian Keith Sewell says
And explain to us that are retired why the economy has tanked in the cost of living is gone up in the last 4 years Presidents and Political parties have a lot to do with the economy
Mike The Texan says
Due to prior recessions, the Feds came up with a monetary policy called “quantitative easing” started under Bush, continued under Obama and Trump. This injected trillions of dollars into the economy worldwide and kept the economy going for the last 15+ years. It’s not a very far leap to understand that all this virtual money ended up creating a huge bubble. Add to that the production issues caused by Covid which created major supplies issues, and you can understand the world was ripe for a huge inflationary crisis. By the way, this is absolutely not specific to the USA. Europe had it just as bad or worse since we are in a global economy. Asia is the only place which did better, not exactly sure why. As much as you want to blame a single person for it, it really was a systemic issue.
Rick G says
Another prime example of how labor is exploited for the benefit of those who don’t labor. All of those companies should have a benefit package to reward those who have worked for the same company for so long.
R.S. says
The economic conditions appear to approximate conditions before the Great Depression more and more. The greed of the superwealthy is doing a number on the rest of us again.
Laurel says
401K’s are a joke. The term 401k comes from the IRS code 401 section K. It’s not a good plan, and when you consider most businesses prefer it over pensions, you have to think someone is up to something. We were lucky enough to get real pensions.
Someone here, I won’t mention who, seems to think that all seniors have “cushy” retirements, and have somehow schemed to prevent our next generation from enjoying the same. Maybe this will be a wake up call. Look to the politicians and the corporations they kowtow to.
Shirley says
I don’t know you but, I absolutely agree with your comment. 401 K is a joke. I started a job back in the early 2000 and that job had a pension plan and a 401k. In order so I could have a little extra I was able to give 14 to 15 % of my weekly paid to my 401k I did not just relief on what the company gave but at the end of the day when you look at it what the company gives you it’s really never yours because if you want to retire early before the legal age you have got to pay those EXPENSES TAXES. Not many company offer pension now that’s a thing of the past.
Mike the Texan says
401k are not a joke. They are great plans if you stick with them and contribute regularly. It’s your money, your investments, but you have to be very disciplined about it. A pension is a promise, and pensions have been known to fail. In a perfect world, a pension is better than a 401k. But many smaller employers could never afford a pension, but can have a 401k.
As for why large companies prefer 401ks, that is very easy to understand. It allows them to control how much money they pay into it (through matching). A pension, on the other hand, is a promise of a defined benefit that you have much less control over, since you don’t know how long people will live, how well your funds will grow, etc… That is why so many pension plans have been in trouble, and you tend to only find them in very large organizations and government.
Laurel says
Mike: I agree with much you said, but a 401K does not come close to a pension.
A 401K has a time limit. Over time, it will be depleted. If, say, you have $XK in your portfolio, and you retire, and you request the plan pay you $X a month, the the plan will be depleted over time. You will get interest on your money in the plan, but it won’t keep up with withdraws to replace the amount depleted. Your plan, at the very, rarely best, will last about 11.5 years. So, at around age 71 (my age) your plan will be done. Most last around seven years. You will be paying 0.6% for the plan to be managed.
The good thing about a 401K is that you can take it with you to another job. Some pensions are transferable, such as the state, most are not. One would have to stay in place in order to get full pension benefits.
You are right about government. My husband I were both civil servants and were on pension plans. I disagree about a “promise,” as it was part of the deal when we were hired. I see it as a contract. The city did try to change the plan, and almost succeeded as upper management thought they could manage their money better on their own. To heck with the blue collar guys and gals. Logic won, and we kept our pensions. Even management saw the light and bought back into it.
We will both get pensions the rest of our lives, and when one of us dies, the surviving partner will get their pension and around 75% of the deceased partner’s pension for the rest of their life.
The bad thing about a pension is that it is a thing of the past. Too good a deal for the worker.
Mike the Texan says
It is a promise, backed by trust and a contract, but these pensions do fail and people have been forced to cash out. The bigger the organization, the stronger the promise, such as “the full faith and credit of the united states'”, but even that can fail, as we see right now with the debt ceiling negotiations.
But yeah, I agree a pension is superior in many cases. A 401k can last a lifetime, depends how much you contribute to it…
Lisa says
Should have voted for Trump. He wouldn’t have destroyed our economy.
Sherry says
@lisa. . . please post credible factual evidence that President Biden has destroyed our economy. Otherwise, we will all understand that you are “mindlessly” posting FOX BS!
John says
I will agree with you. But I do not share their financial pain I do agree we will all feel pain. I am a retired Army Officer and opted to go a pretty grueling life to get a solid pension. I can empethize with Walmart workers on some level but at the same token they dont know what its like to get up at 430 am for a 10 mile run or jump on a plane to go to war. No one is going to kill you at Walmart. You will survive those days of commerce with no loss of limb or rocket attack. Very few youthful people with great looks and a college degree would put up with misery for a military pension. It is PRECISELY that person who stands all to gain. By holding steadfast for decades…knowing you will be secure. Financially….if you make the right commitments and have some luck. The 401k is a sham. Govt pension is secure.
Mike the Texan says
Thank you for your service John. People like you are remarkable, but not everyone is cut for that type of life.
Unfortunately, I have to disagree with you that “nobody will kill you at Walmart”, that is not so true. I’d actually be a good side discussion to look at number of Walmart employees killed at work by all the crazies out there.
On the 401k point, hey, I agree with you. I’d take a pension over a 401k any day if that was offered to me. But this is getting more and more rare, and basically only in large corporation union jobs or government jobs. With a lower ratio of active workers vs retired workers than 30+ years, pension plans are also getting very hard to balance, thus getting more and more expensive for employers who have switched over to plans that cost them less, like a 401k. I read that only 14% of americans have access to pension plans.
But, well planned, a 401k is not a sham at all, I don’t know why you guys keep saying that. It just requires financial discipline that so many people don’t have. Some think that the solution is to “force” people to enroll, but personally I think people should be free (to do whatever foolish thing they want).
Christine Henry says
Cynthia should speak to her fellow Americans about voting for leaders who recognize and understand the plight she and millions of other working Americans face and are willing to vote to implement changes like she proposed rather than bow down at the altar of money being offered by large corporations to oppose policies that will improve the lives of poor and working-class Americans. The folks who seem to be bewitched by Donald Trump and Ron DeSantis and all the other republicans who are peddling hatred under the guise of protecting families and neglect economic issues such as described by Cynthia don’t seem to assess how even their lives could improve by some of the social welfare and tax policies proposed by democrats; much like they didn’t when Obamacare (the Affordable Care Act) was initially proposed. I just wish people would take the time to really educate themselves about policies rather than just listen to representatives from their side of the political divide. America is in a sad state because of this.
djwhite077 says
Couldn’t agree more…especially the comment about educating oneself. Sadly, I have siblings who fit this description verbatim. And unfortunately, that failure to educate seems to be behind every negative thing that hits the news cycle. As an example, I read earlier this morning that the mother whose complaint resulted in the pulling of Amanda Gorman’s book from the bookshelf of her child’s South Florida elementary school, Daily Salinas, who herself has ties to far right groups including the Proud Boys- https://www.aol.com/florida-mom-tried-ban-amanda-210949476.html -has admitted that she only read parts of the material she was objecting to: https://www.usatoday.com/story/news/nation/2023/05/28/daily-salinas-amanda-gorman-poem/70265234007/ What’s wrong with this picture?
Sherry says
@ Christine Henry. . . Excellent comment, I couldn’t agree more! It is astounding and tragically sad that many of those with stories similar to this have actually been duped into voting the straight Republican ticket. . . against their own best interest!
Shark says
Welcome to Wal Mart
Sherry says
This, from the heart, article has a simple message: “Fairness”.
Each and every person in Congress and the state houses should be required to read this personal appeal thoroughly before taking office, and before each and every vote. The horrific “GREED”, and distain for humanity, that has absolutely perverted our “capitalistic” economy, and destroyed the middle class, is now putting our actual democracy at great risk.
The massive income disparity between high level management and the front line workers in the same company is not only unfair, it degrades company loyalty. . . negatively affecting the quality of products/services. That disparity is quite simply “Un-American”!
Missy says
Fairly certain looming retirement didn’t pop up unexpectedly. Why did you stay in a position that put you in such financial straits for so long?#
John says
My question exactly. Not to mention that Walmart happily moves people up the payscale ladder very quickly if they want more responsibility (which equals higher pay). And I’ve been working at Walmart too for 5 years. I easily schedule MORE than 14 days off with pay. Walmart’s paid time off (PTO) builds up every hour you work. Do I take off 2 weeks in row? No, but I never miss a family event because I HAVE to work.
In addition, I took the job because for the health insurance – much cheaper than Obamacare – not because the pay was good. The author is old enough to be on Medicare now so health insurance shouldn’t be an issue.
Do I think Walmart should pay it’s Frontline employees more? Yes.
Do I think it’s Walmart’s fault that this woman didn’t manage her finances in a way so that she can retire now. Absolutely not.
Sharon Allen says
I feel bad for her somewhat but during those 22 years, did she ever think of bettering herself at the job ( better position) or learning something that might bring her more money. What did she think would happen after those years. People stay stagnant and then are questioning why others moved up or left for better. They just let life happen and hope for a miracle.
Sherry says
@Sharon Allen. . . how very unkind and disdainful of you. Karma always comes around!
Gary says
So in reality, this article leaves many unanswered questions. Sure I am sorry that she feels that she can’t retire at 67 but she does qualify to to receive social security and Medicare. We are all in charge of our own retirement and need to prioritize what’s important with our finances at every stage of life.
To continue, why didn’t she contribute to the 401k? Also some companies contribute 1% even if you don’t and offer a matching percentage when you participate. There is no information about that in the article. Sure it’s been a long time coming but company retirement accounts have been getting better for everyone at all levels.
There is so much misleading information in this story. She had opportunity to save something even if it was less than the company CEO. While you could argue that she deserves holiday and paid time off, she chose to work in that field. There are many professions that need to cover 24/7 schedule like police fire fighters paramedics nurses and more. I was lucky to have met a coworker who convinced me to join and save for retirement early in my career.
Tracy says
My husband passed away and after 10 to 15 years of service they said they couldn’t pay me my life insurance I had on him because of a technicality… Left myself and my kids destitute. I wasn’t the only employee they shafted that way either. Sam Walton would never have approved of this…
Sherry says
Dear Tracy,
It’s so very sad that so many in our country choose not to really “hear” stories like yours. The contemptible comments here that say large, profitable companies like Walmart have little responsibility to provide a decent life for their employees are a tragic sign of inhumanity. You have my compassion.
Eric C Ackernecht says
Walmart has a 6% 401K match why didn’t she save 6% a week and Walmart would match that 6%. After 22years she would have a nice nest egg.
Shawne Beckwith says
You are ALL missing the point! She needed her pay more than 401k.Yes you could go indebt schooling maybe, unless its a ROTH the taxes would kill her!
Sherry says
Thanks Shawne! Excellent point!
Jim says
I too work at Walmart and know of several people who have been smart and started contributing early in the career and after only 5-10 years have pretty large portfolios. It’s your fault if you choose to spend your entire paycheck rather than save any.
Sherry says
@ Jim. . . Geez.. . please open your mind and heart. How do you know Cynthia, along with the other whopping 40% of employees at Walmart, are “spending that ENTIRE (HUGE) paycheck” on anything other than rubbing every penny twice to make ends meet? Why would you automatically assume that they had any money at all left after paying their bills and putting food on the table?
Why are you defending a despicable company like Walmart when they treat their employees so poorly? In addition, Walmart CHEATS US ALL BY AVOIDING PAYING THEIR FULL INCOME TAXES: Walmart avoids an estimated $1 billion in federal taxes each year. The reason: Walmart uses tax breaks and loopholes, including a strategy known as accelerated depreciation that allows it to write off capital investments considerably faster than the assets actually wear out.
Sherry says
@ Jim. . . look at the bigger picture. I’m correcting my prior comment. . . it is actually 46% of Walmart employees that do not contribute to their 401K plans. . . It seems you are assuming 46% of Walmart employees are beneath contempt, and that they are to blame for accepting Walmarts crumbs, and for being the working poor. Not everyone has the good health/ self esteem/education/opportunity/circumstances to snap their fingers and get a better job. Meanwhile Walmart’s upper level management and their stockholders are raking in millions. . . while doing everything they can to AVOID paying their fair share of income taxes. Think. . . just who is the “bad guy” here?
Hookah Smoking Caterpillar says
You should follow the six Ps… Prior Planning Prevents Piss Poor Performance.
Pogo says
@Lots of comments by reptiles and other Republican Party shitheads
The simple truth: a small sample
https://www.google.com/search?q=corporate+raiders+plunder+defined+pensions
American heritage
https://www.google.com/search?q=the+poorhouse+in+american+history
God bless the child
https://www.google.com/search?q=revival+of+child+labor+in+america
And so it goes.
Anita says
So you started working at 45 years old and never bettered your skills or your position and you are trying to blame Walmart that you can’t retire? Hahahaaaa. Wow. That’s some top level entitlement right there.
Sherry says
@Anita. . . Laughing at those who are struggling. . . What a contemptible, inhumane comment! Karma always finds a way.
Mike the Texan says
Walmart’s 401k matches dollar for dollar, up to 6% of your eligible wages for the Plan year. So, if Cynthia had contributed 3% of her salary ($40 every 2 weeks) for 22 years, with a 7% market return (which is conservative), she would have 120K in her 401k today, not 0, thanks to compound interest. And perhaps Walmart isn’t the best employer and there could have been better opportunities along the way?
Of course life is unfair, of course there are inequities in a capitalist society and corporations are greedy, and I agree that pay and benefits at Walmart should be improved, but it’s a little too easy to blame it all on the top executives and their special plans. Did Cynthia really do everything she could during the last 22 years to save?
Laurel says
Mike: And how long will $120K last? You believe that 7%, if indeed she gets that, will keep up with the amount she draws down over time? To clear a thousand dollars a month, you would have to withdraw $1,200 per month as $200 will go to the government. So, she is getting interest on her money, but it simply cannot maintain a sustainable balance. It would be good about 8.5 years. The interest she earned over the 8.5 years on that money would equal about another three years, which would make it about 11.5 years and the money would be gone. So she would be living on $1,000 a month, hopefully along with Social Security, while her money becomes less valuable (cost of living) over time. Cynthia would have to have a short life span for this 401K to last her lifetime.
Mile the Texan says
I never said it would be her sole income and I never said it would be enough. I was just showing that if she had made the effort to invest a little in her 401k, she would be 120K better off than today with her 0 balance. And like others have said, hoping to retire on a 401k+SS after 22 years of work is simply unrealistic, you have to put at least 40 years in, and probably more these days when full retirement age is 67. Look, I’m not saying any of this is easy, but the article is just so one-sided, and trying to suggest that someone who worked 22 years at Walmart should have a decent retirement, and that it would happen if the big bosses wouldn’t stuff their pockets with people’s money. It’s simply too easy to say that, that’s just my point. At some point, people have to be responsible for their actions. I am a fat guy, and I am not trying to blame the entire world because I’m fat. I know I’m fat, and I know it’s because I eat too much and I should make better choices. Maybe if society wasn’t so geared towards refined carbs, I might do a little better, but the main reason I’m fat is ME. See the point I’m trying to make here?
Laurel says
I put into Social Security from age 15 to age 60, most of the early and mid years were pittances. My whole working life I made less than my male counterparts, even if they happened to be dumb as rocks. I put into my pension for 20 years, so you could say I started that late just like Cynthia. But yet, I’m okay. Part of the reason I’m okay is that I got married at age 48, for the first time, and had no kids (another part is real estate). So many here are being so judgemental, yet I don’t hear anyone mention that these days, it takes two. Women make less money. Women take care of kids. Women take care of the parents. Women often start careers late. I can’t judge Cynthia because I don’t know what her life dealt her and what resources she had to deal with it.
That’s not so much to respond to you, Mike, but to many of the others here. My response to you was to your response to my belief that 401Ks are a joke. Yes, small companies may have a difficult, even unrealistic ability to provide pensions. That’s clear. Does that include Walmart? No. The big companies do it for better profits, which much goes to CEOs who have made sure they can take advantage of that, and they rarely deserve it.
Mike the Texan says
Sounds like you had a plan and did okay because you stuck with your plan, even with small means. And totally agree on the fact that it takes 2. Not sure if the person here has a spouse or not. Part of the many missing pieces in that article.
It’s no secret that Walmart is a company with questionable business ethics, one of the ones with the lowest satisfaction index in our country, and it has done damage to a lot of communities with its tactics. So Walmart, with their huge profits, could do a pension, but will never do that. Then why shop there and why work there?
Here in TX, we have a much better grocery chain called H-E-B, which is praised by the community and I believe they offer a pension. Yet, the owners are billionaires too and I’m sure there is a huge disparity in income there too. I know people are going to find all sorts of reason why I’m wrong and tell me she had no choice, but perhaps Cynthia should have moved down here to a company like that. To me, that’s part of the decisions she could have made to have a better outcome, and I do not see in that article, where she simply blames the whole system and her employer.
Sherry says
Bravo Laurel! The fact that it does take two, and that women STILL face discrimination and lower pay in our male dominated culture are truly excellent points!
Mike the Texan says
That’s crap… It takes 2 whether you are a man or a woman. Everything is better when you share resources with a partner, man, woman or anything in between.
Ahto Motive says
Why work at such a low paying job for 2 decades. You could have been trained in a higher paying job thru state and federal programs and still work to pay bills. Community College grants pay for your courses. Nurse, health coder many other courses based on your education.
G says
Don’t work ar a Chinese run company that cares less about employees
Buck says
Walley World is a JOKE……. NEVER , I repeat NEVER go to work there. Your life will be miserable . Who in their right mind actually likes dealing with the ” PUBLIC ” ? I’m serious, you got to be a “loose in mind” to want to deal with all the ZOMBIES that walk in that dumpster of a store.
Sherry says
@ Buck. . . Couldn’t Agree More!
Marc Garcia says
It is that nobody’s fault but yours to work at a company that paid you so low you you should have worked at a company that paid you good money you should have found a company that pays you more don’t complain if you didn’t try to do something for yourself I’m tired of people complaining I know it’s hard out there but there’s jobs that pay you better than that 22 years ago you know Walmart doesn’t pay but you continue to work there it’s your own fault
Steve Rodarte says
You should have spent 22 years doing something else.
Wesley says
You haven’t worked long enough to retire if people could retire after working 22 years people would be retired in their 30s lol…my dad worked over 40 years at UPS and just retired last year at age 63…
Mary Fusco says
I could care less about politics but this is my take on this. Many moons ago, I stayed at home to raise my children. After a while I wanted to go back to work. I took a local job just to get my foot back in the door. I worked there 4 years, no benefits, no pay raises, no vacations, etc. So I decided to look for something more. I found a pretty decent job at a Bank where I had benefits and a paid vacation. Low and behold, kids started college. Rather than dig into our savings or mortgage the house we were trying to pay off, I took a second job. I worked 60 hours a week for 9 years. Kids also worked almost full time plus going to college. They had student loans, we had parent loans which were all paid off. My decision to have 4 children was not my employer’s problem. After 25 years, we sold our home that was paid for, retired and bought our current home for cash. My point is that we are all in charge of our own destiny. If a job is not working out, move on instead of complaining about what the executives are making.
Laurel says
I’ve gotta say that I’m disappointed in the “you should have done better” comments here. You don’t know what the whole story is as to why a person is in the position he/she may currently be in. Health care is a big problem in this country, and people still go broke when a serious illness hits. That is simply wrong. CEOs getting multi-million dollar salaries just are not worth their weights in gold. Many CEOs get golden parachutes when they F up. Companies used to believe that if you take care of a person, the person will take care of the company. Now, loyalty is dead.
There are those who have been siphoning money off the middle class for decades now. As soon as the rich think they may have to pay more in taxes, which does not effect them in any way, they start crying “distribution of wealth.” We’re supposed to be a country “United.”
Sherry says
As usual, I certainly agree with you Laurel.
There are several people who comment here, over and over, from that defensive “you should have done better like I did” place. There is a lack of understanding that each of us come into this world surrounded by different circumstances. Not everyone has the same opportunities/education/skin color/family/upbringing. Where is the compassion?
Sherry says
For those of you who so cavalierly “blame the victims”. . . with very little factual information . . . based solely on “your” personal experience and circumstances:
Let’s start by taking a look at Walmart’s stock price which went from about $40 to a staggering $146 in the past 20 years
https://www.netcials.com/stock-price-chart-history-nyse/WMT-Walmart-Inc/
Between 2008 and 2017, the largest American companies spent more than ninety per cent of their corporate profits on stock buybacks and dividends, which primarily serve to drive up stock prices and enrich shareholders. A recent analysis in the Wall Street Journal showed that the median pay for a C.E.O. of an S. & P. 500 company rose to a million dollars per month in 2018, driven by tax cuts and healthy corporate profits, while the average worker’s wages grew by just three and a half per cent. Why, why, why shouldn’t their front line employees share just a little bit in the financial success of those companies?
Cynthia is the daughter of a truck driver, and she has managed to achieve only a high school education.
During her years at Walmart, Cynthia Murray has seen changes that, she feels, have undermined the long-term health of the company and its workforce. A few years ago, the company modified the way that it gives pay increases to its retail employees, moving from a set annual raise of forty cents an hour to a two-per-cent increase in pay, a change that Murray says has resulted in lower raises for many workers. The company started using a points system to track sick days, which Murray says pressures workers to come to work even if they are running a fever. Waves of layoffs and reductions of shifts over the last decade thinned out staff inside Walmart’s vast emporiums, leading many merchandise shelves to sit empty for long stretches because there was no one available to stock them. In 2016, an article in Bloomberg Businessweek noted elevated crime rates at Walmart locations across the country, which were straining local police departments; the crimes were attributed in large part to cuts in staffing at stores. This past February, when it introduced the changes to its sick-day policy, it also said that it was offering bonuses to workers who minimize their absences.
Yes, of course, Cynthia . . . and, everyone. . . should do their very best to get educated to the highest level they can attain. Yes, ALL workers should take advantage of 401 K plans because guaranteed “pensions” are quickly becoming a relic of the past. Yes, Cynthia was STUCK in a nowhere job for way too long.
Before we so quickly judge her, though. . . we know very, very little about her life circumstances. What if she (and the other 40% of Walmart associates) had NO choice but to pay the rent with that last penny or put $$ into a 401 K? What if she could not even afford a car and was forced to work within walking distance of her home? What if she had children/sick family to care for? What if Walmart dangled promises of promotions they did not keep?
Look. . . . “someone” needs to stock the shelves and clean the hotel toilets. . . In the richest country in the world, where BILLIONAIRES pay almost ZERO income taxes. . . Why shouldn’t those who are willing to work hard and keep our economy going be able to live with a little respect and dignity, and retire with some modicum of security???
Mary Fusco says
Sherry I was the daughter of an alcoholic and only had a high school education. Yet my husband and I, due to sacrificing, managed to raise 4 children, put food on the table, put them through college without begging. This woman at 67 is eligible to receive her social security plus medicare plus be able to continue working if she chooses. My children range from 54 to 49. When they got their first jobs at 16 my husband told them “you spend some, you save some”. They carried this advice throughout their lives. They all had their first savings accounts the day they started working.
Sherry says
@ Mary. . . Good On You!!!! You must be very proud, as we have all heard your story many times.
Your family is most certainly not the only one with a similar story of struggle, hard work and success. I personally can identify with much of your life.
However, you and I are quite different in our perspective when it comes to understanding the plight of others. For example, “I” see myself as “blessed” although I was raised in a very poor family and had near death illnesses in my teens and early twenties, etc. etc. etc. I am blessed because I have “white” skin.
I am blessed because I have a good mind, and got the extensive psychological analysis I needed in my 30’s. I am blessed because I recovered my health and was physically able to do those 60 hour weeks. I am blessed because I deeply care for others and they “get it” about me. I am blessed because my (essentially Buddhist) spirituality has helped me develop not only great compassion, but very high principles, as well. I do my best to live my life with no regrets. My cup is much more than half full.
Maybe because I feel so blessed, “I” do not have the need to compare myself to others, or “judge” them, or defensively put them down. I prefer to try and “walk in their shoes” and try to understand their particular situation. I try to find compassion.
We are NOT created equal and we do NOT have equal opportunities!
Saying that, I don’t suffer “FOOLS” gladly. Therefore, you will paradoxically see me stridently challenging those who post lies, and fear filled/hateful comments on this site.
Kat says
Excellent comment, Sherry.
Mike the Texan says
$40 to $146 in 24 years is somewhere around a 5.5% per year return, which is actually not that great… Nothing particularly staggering about it. I guess that is not a great example of how corporate america is misbehaving.
Yes, we know nothing about Cynthia, and that’s not our fault. It’s because she says very little about herself, and simply blames the world for her personal situation and points fingers at corporate fat cats, and that is what bothers me in this article. I’m sure that’s partially true, as corporate greed is evident, but did Cynthia not understand during these 22 years that saving even $20 per week could help a lot in the end? Did she try to find something better, with better benefits? Why not work for the state, for the city? Walmart surely wasn’t the only choice…
Sroper79 says
You’re still a cashier after 22 years? Whi didn’t you try and move up woth company?
Sean K says
Lmfao making less than $17/hr and you think you’ll retire after 22 years? No wonder you still make close to minimum wage! Here’s how we fix the ridiculous paradigm were in:
1. Stop rewarding freeloaders and laziness. Don’t want to work your butt off and get an education? That’s fine, but no one owes you anything. You aren’t entitled to squat merely because you exist.
2. Stop voting for socialists, communists, globalists, and “environmentalists”. Their playbooks are old and tired and literally fail everywhere they are tried. How will shutting down oil, natural gas, and coal help us become more prosperous? How will limiting cheap efficient resources help up grow? It won’t. Actually the opposite. It’s designed to make the people in control rich. They could give a rats rear end about the cost of food and energy. They want us poor and stupid so they can control it all in their favor. Freedom = lack of control. They fear it with a passion.
3. End public teachers unions and radically transform school back in to reading, writing, and math. Why the eff are we importing engineers? Why can’t my younger brothers get jobs on construction sites?
4. Incentivise child birth and American workers by nearly banning immigration for 50 years. Why do you think labor is cheap and fertility rates are low? We’re importing you and your childrens replacements, who work like animals because they’re not from developed nations. This enriches the ruling class and spits on you and your family.
It comes down to borders, language, and culture. Without those things we don’t have a nation, much less widespread prosperity. All three of these things have actively been erased over the last 50 years and look where it’s gotten us. Commies are now widespread throughout our local state and federal governments, and we pay the price for that.
Sherry says
@Sean K. . . There are simply no words to discuss your very angry diatribe . . . your heart must be filled with so much pain. Hopefully you will get the counseling you so desperately need and very soon.
Teresa C Purvis says
I work for a well-known southern based grocery store. I had a 401k plus a profit plan. The person who started this conversation said they only made $16 an hr and could not afford to contribute. I never in my 25 years made $16 and managed to save a lot. I was a single parent who did get child support. A whopping $50 a week when he decided to pay it. It was not easy, but I retired with well over $100,000. Not a lot but it helps. I still work about 12 hrs a week and it helps also. I could have saved more had I bought less books and eaten out less. It can be done. I am not on easy street but I am so happy I have that extra income to supplement social security. Save $5 a week starting when u are young. Give up one special treat and put it in savings. I just turned 69 and if I stay healthy, big IF, I will be ok.
Sherry says
https://www.fool.com/retirement/plans/401k/401k-to-ira/#:~:text=Can%20you%20roll%20over%20a,k)%20to%20a%20Roth%20IRA.
Regarding 401K plans.. . . Give serious consideration to rolling them over into an IRA where you have many more options and much greater flexibility. My traditional and Roth IRA retirement accounts with Vanguard have provided a very good retirement portfolio and income for me.
Dee Cummings says
Walmart used to post their stock price in the lobby for employee purchase at a DISCOUNT! I read of a school(?) janitor who left a school millions because of wise saving and investments.
I have no pension having worked only five years at a time. My choice. But I always maxed out my 401k. Never left free money on the table. Raised three kids, bought and paid for two houses, and have a problem with how to invest my money to beat inflation. Always made less than 25 bucks an hour, sometimes less than ten. Homeschooled my kids , sent them to private and public schools, paid for their college (and mine and some of my wife’s).
No complaints money wise, but a lot of cutting coupons, buying used clothes and cars, and just doing without. Funny thing, for some reason all my grown kids are well off.
The dude says
A 401k isn’t going to grow very fast at 6% + 6% match when you made 16.00/hr.
Then, as if standard market forces weren’t enough to make those sweet sweet 401k earnings disappear instantly, you have MAGA creating artificial financial crisis every couple of years by threatening to not pay for all that fat spending that they previously authorized.
What takes years to build up can vanish overnight, but it will never come back overnight… ever.
Let’s face it, depending on a 401k is basically like planning your retirement around anticipated winnings at the craps table. Except for the fact that even if you walk away from the table up for the night, your winnings can still disappear by the time you make it to the car.
This is the conservative vision for our retirements: “All that money is way better off in the hands of a couple old white dudes.”
Mike the Texan says
Well, let’s do the math, “The dude” , since you don’t believe in regular investments on the stock market. Ok, first, let’s see the average stock return of the stock market over 40 years (11.6%), 30 years (9.64%), 20 years (8.14%) or 10 years (12.37%). So, let’s just say 10% per year over a very long period. Ok, let’s lower that to 8% just in case it’s a bad 401k with lots of fees.8%
Let’s assume the employee starts at $16/hr and gets a 1% raise per year (it’s Walmart, I dont expect miracles). Let’s assume this person starts working at age 21 and retires at age 67. This person invests 6% of her salary like clockwork for 46 years and gets a 100% match from the employer.
Plug that into bankrate.com/retirement/401-k-calculator/ and you will get 1.8 million dollar after 46 years.
That’s the power of compound interest.
Care to rethink Mr “the dude” or are you too stuck into your leftist way of thinking?
The dude says
She ended up at $16.00/hr after 27 years, not started at.
Mike the Texan says
Sure, just trying to counter your incorrect argument that “A 401k isn’t going to grow very fast at 6% + 6% match when you made 16.00/hr.”.
The dude says
Just to humor you, I did go to your bankrate thing and punched in numbers more accurate and relevant to this article.
So this person, starting at walmart 27 years ago at minimum wage (1996 it was $4.75), with an annual salary increase of 3% (1% seemed kinda stingy) a 6% contribution and a 6% match ends up with $146,313 at retirement. Jack that salary increase up to 5% and that person has closer to $190,000.
That’s IF all goes to plan, and IF they retire at a peak in the markets. Of course that money will still be subject to the whims of the markets, so retiring at the peak guarantees nothing. That $190,000 could become $160,000 in a matter of hours or days, and take ten years to build back up.
Ending up with $190,000 after 27 years is about the equivalent of saving $560.00/mo +/- in a low interest savings account. That is going to be quite difficult for an associate making $4.75/hr and $190.00/wk before taxes in those early years.
Those aren’t terrible numbers, in the 70’s and 80’s it might’ve been a small fortune. But that won’t go far in today’s world.
Mike the Texan says
You are right, it’s not great, but it’s much better than the zero she has due to lack of planning. And make that a 45 years career instead of 22 years, and the numbers would look a lot better. nobody can retire after 22 years.
James says
Of course you can’t, it’s not walmart’s fault, it is your own fault.
NM says
It’s not their fault all the time. It very well could have been in this situation, but my husband was with the same company for 31 years, when they suddenly closed the doors without any notice given to their employees. Since he started there when he was 18, technically he isn’t old enough to retire yet. We have been wiseand cautious thankfully, with how we invested our money and saved for our future and he was able to retire early. Some people aren’t as fortunate or just make stupid decisions about what they do with their money and have to work until they are “75 or 80”.
Sherry says
@NM. . . Thank you for your perspective.
Many of us have major life challenges that are brought to us through no fault of our own. . . such as employer failure, disease/illness, loss of spouse, that car that crashes into you, etc. etc. etc. Many, as you said, make unwise decisions with our life choices . . . like choosing the wrong life partner, trusting the wrong employer, not saving or investing our money wisely, not taking the best care of our health, etc. These things are all part of the human life experience. Imperfection= Being Human!
IMO. . . as a retired high tech recruiter. . wealthy companies like Walmart have a moral responsibility to provide a reasonable pay and benefits package for all their employees. . . along with company policies that actually uplift their lives. Wealthy companies like Walmart should not be CHEATING US ALL by maximizing their profits and stock price while doing all they can to AVOID PAYING THEIR FAIR SHARE of TAXES.
Just look at some of the comments here. We should certainly NOT be smugly judging and disparaging those who are struggling under the oppression of such companies. Those who do so should be very ashamed. Can we not strive to be more compassionate towards one another? Can we not unite in support of of each other? Are Walmart’s profits more important than the well being of your neighbor? Have we, as human beings, as citizens of the “United States” really sunk so low?
Lizzie Luvshak says
Amen Sistah!
Tyler says
Walmart matches 1 to 1 up to 6% of 401k. Ive worked for state gov, and other major corps- the state matched 4% and the other major corp 3%. I am a newer Wal-Mart employee, but their plans are public and I encourage you to look them up. If you couldn’t make 6% match work, that’s a YOU problem. Own it.
The economy is a mess, everyone suffers regardless of the company- this article is misdirection to place fault with a corp rather than a failing economy all around.
After 1 year from associate start date, all Wal-Mart associates are eligible for a 6% 401k match. That includes anyone who worked over 1000 hours in the previous year, so even part time at roughly 20hrs/week still qualify.
They also offer 15% contribution toward stock purchase up to 1800$. A free 270$. Their healthcare plans start at 26$ a pay period or 52$ a month. 9 weeks paid off for new Moms, 10% off for all, 20 free mental health sessions per year which given the mental health crisis we face- Wal-mart is far ahead of what I thought going into the company. It was intended to be a stop-gap until I found something else, but it has career potential.
The real evil here is deception or a lack of individual responsibility.
Maybe your gripe should be with social security who took 6% of your money every check and gave you back nothing?