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<<Starbucks is dropping its 401k match. Not the first company to do this but Starbucks has always treated their employees very well. So I'm wondering how future generations are going to ever retire. First company sponsored pensions began to disappear. 401k plans were supposed to replace them. The employee would be responsible for his own retirement but the company would help out with a limited match. Now the match is disappearing. Meanwhile top executives still feel entitled to multi-million dollar comepensation. I love capitalism but at some point if this trend continues there's going to be a huge backlash.

>>


I saved half my after tax income for twenty years and reached financial independence on the income from being an office clerical and blue collar for a utility company. Only a small part of that was from a 401K match, and another small part from the company pension plan --- later turned into a cash buyout of the value of that benefit.

If people spend all they earn, I imagine their retirement will be delayed, not early. Or perhaps they will keep working until they drop.

I don't imagine it will make a lot of difference to those who are disciplined enough to save and invest on their own motivation.


And *bucks is going through a rough patch. Better to save the company than company benefits. I would suppose they will reinstate that benefit at a suitable time, don't you think?

And better to suspend the 401K match than their generous coverage of health care and other benefits even for part time employees.



Seattle Pioneer
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