When comparing different types of retirement plans, keep in mind that the amount your employer matches will have a big impact on your life after your earning years have passed. Because of compound interest, a variation of just a few percentage points could mean the difference of hundreds of thousands of dollars over the course of a career.
Tech Company Offerings
Modern tech giants like Google are lauded for their employee-centric work cultures, creative incentives and all-around awesome benefits that include perks like cooking classes, guitar lessons and great parental leave policies. Many also shine when it comes to offering generous investment accounts for retirement planning.
Here’s how the retirement offerings from tech companies stack up:
Google: 100 Percent Match
Google’s plan allows employees to be fully vested from their first day with a 401k match of 100 percent up to $3000. They also have automatic enrollment for their employees.
Apple: 50 Percent Match on the First 6 Percent
Apple has one of the best 401k match benefits. It offers 50 percent of the first 6 percent for the first two years of service. Employees are fully vested in the plan from day one.
Oracle: 50 Percent Match on the First 6 Percent
Oracle offers a company match of 50 percent of the first 6 percent that the employee contributes to the plan. The vesting is 25 percent each year for four years until the employee is fully vested.
Facebook: 50 Percent Match on the First 7 Percent
Facebook’s 401k plan is comparable to other retirement plans in the tech industry. The company offers a 50 percent match on the first 7 percent contributions to the plan. The employee becomes fully vested in the plan after four years.