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Riddle me this — a Fortune 500 employer has a 401(k) plan that features:
- Auto-enrollment.
- A front-loaded match that offers a 3% employer match on the first 1% employee contribution and increases to an 11% match on a 5% employee contribution.
- Effective communications materials for targeted demographic groups.
- Educational seminars addressing retirement readiness and investment advice.
- A one-at-a-time loan policy.
- A 98% participation rate for line managers and above.
Can you guess which company this is? My first guesses were Google, Apple and Target. All wrong. Give up?
It’s McDonald’s.
I’ll wait a minute to let that sink in.
I’m not a big fan of the golden arches at all. I refuse to eat McDonald’s food and only let me kids eat it on once-in-a-blue-moon type occasions. (Their grandmother, on the other hand, has a much looser policy. But I’m working on her.) So, it came as a huge surprise to me to hear that as much as I dislike its food, I am in love with its 401(k). I mean, really — an 11% match? Who wouldn’t be tempted to be a fry cook to get that?
But maybe I’m getting carried away. What do you think? Would you have guessed that McDonald’s would have such a generous retirement benefit? Is its retirement generosity only possible because it offers mini-med health benefits? How do you think your own company’s plan shapes up by comparison? Share your thoughts in the comments.
Riddle me this — a Fortune 500 employer has a 401(k) plan that features:
- Auto-enrollment.
- A front-loaded match that offers a 3% employer match on the first 1% employee contribution and increases to an 11% match on a 5% employee contribution.
- Effective communications materials for targeted demographic groups.
- Educational seminars addressing retirement readiness and investment advice.
- A one-at-a-time loan policy.
- A 98% participation rate for line managers and above.
Can you guess which company this is? My first guesses were Google, Apple and Target. All wrong. Give up?
It’s McDonald’s.
I’ll wait a minute to let that sink in.
I’m not a big fan of the golden arches at all. I refuse to eat McDonald’s food and only let mykids eat it on once-in-a-blue-moon type occasions. (Their grandmother, on the other hand, has a much looser policy. But I’m working on her.) So, it came as a huge surprise to me to hear that as much as I dislike its food, I am in love with its 401(k). I mean, really — an 11% match? Who wouldn’t be tempted to be a fry cook to get that?
But maybe I’m getting carried away. What do you think? Would you have guessed that McDonald’s would have such a generous retirement benefit? Is its retirement generosity only possible because it offers mini-med health benefits? How do you think your own company’s plan shapes up by comparison? Share your thoughts in the comments.
