Unlike its previous retirement plan, where the company would put 4% of its profits into employees' retirement plan, WalMart's new retirement plan requires a certain percentage of contribution on behalf of the employees. Consequently, WalMart will match this percentage and double it.
How Smart Is That?
I think WalMart's change to its retirement plan is good news for employees. An up-to six percent match is very good compared to industry standards. Furthermore, asking employees to contribute will help employees develop a more robust retirement. Most workers will contribute the six percent to take advantage of WalMart's matching system. Best of all, employees won't have to share retirement with others or worry about WalMart's profits. Instead they have a guaranteed match.
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