The Complete Guide to Walmart‘s Retirement Benefits in 2024
Walmart offers robust retirement planning options to its 1.6 million US associates through its 401(k) plan, health insurance, life insurance, and other post-employment benefits. With the average American having only $86,869 saved for retirement, Walmart aims to help its associates build financial security for their later years.
401(k) Retirement Plan Details
The centerpiece of Walmart‘s retirement benefits is its 401(k) plan:
- 6% matching contributions on associate pay up to IRS limits
- Matches 100% of associate contributions
- Features automatic enrollment at 6% deferment
| Employee 401(k) Contribution | Walmart Matching 401(k) Contribution | Total Contribution |
|---|---|---|
| 1% of pay | 1% of pay | 2% of pay |
| 6% of pay (max match) | 6% of pay | 12% of pay |
Data sources: Walmart, IRS
This table illustrates how Walmart doubles associate retirement contributions through the generous employer match.
Associates can contribute up to $22,500 in 2024, with those over 50 able to contribute an extra $7,500. The 6% automatic enrollment is twice the 3% national average deferral rate.
With average manager pay at $65k, managers contributing 6% with full employer match would have over $250,000 accumulated after 15 years with a 7% annual return.
Valuable Retiree Health Benefits
Walmart provides the following healthcare benefits for eligible retirees:
- Pre-Medicare coverage for early retirees
- Medicare Part D plan offering reduced prescription costs
- Coverage can start as early as age 55 with 20 years of service
Retiree healthcare costs average $4,300 per year, but Walmart helps reduce this burden. Pharmacy expenses make up 20-30% of retiree medical costs, so Walmart‘s Medicare Part D support provides particular relief.
Life and Accident Insurance Protection
Eligible retirees can maintain:
- $2,000 in company-paid life insurance
- $2,500 in company-paid accidental death & dismemberment coverage
While reduced from active employment levels, this coverage provides helpful financial backing at virtually no cost to retirees.
Ongoing Shopping Discounts
Retirees meeting tenure requirements can retain their 10% Walmart associate discount card for continued savings on general merchandise and groceries during their post-employment years.
How Do Walmart‘s Offerings Compare?
Walmart‘s 401(k) match is extremely strong compared to key retail rivals:
| Company | Employer 401(k) Match |
|---|---|
| Walmart | 6% with 100% match |
| Target | 6% with 50% match |
| Amazon | 4% with 50% match |
| Costco | 3% with 50% match |
Additionally, Walmart is among less than 25% of Fortune 500 companies still providing any pre-Medicare retiree health coverage. The shopper discount card for retirees provides unique, lifelong value.
In my analysis, Walmart‘s retirement benefits outpace nearly all its major competitors. Associates can take full advantage by contributing at least 6% to their 401(k).
So in summary, Walmart equips its associates with robust 401(k) funding, health insurance options, and other post-career protections – enabling a financially stable retirement after their Walmart journey.
