For most folks, it’s hard to imagine a grocery store cashier becoming a millionaire. But one longtime Costco employee has shown that building seven-figure retirement savings is possible without owning a business or earning a six-figure salary. According to Yahoo Finance, Tony Barzar joined Price Club, later merged into Costco, in 1986. His first job was collecting shopping carts in a Tucson, Arizona, parking lot, earning just $5.85 an hour.
Nearly 40 years later, Barzar still works for Costco, now as a cashier earning $32.90 per hour. Along the way, he purchased a three-bedroom home with a swimming pool, traveled to Europe twice, and, perhaps most remarkably, grew his 401(k) retirement account to more than $1 million.
Rather than striking it rich through risky investments or luck, Barzar credits decades of steady employment, disciplined saving, and Costco’s generous employee benefits for his financial success.
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Decades of consistent saving
When Costco introduced its 401(k) retirement plan in 1993, Barzar began contributing a portion of every paycheck and never stopped. As his hourly wage gradually increased from roughly $10 an hour in the 1990s to $32.90 today, he steadily increased his retirement contributions. Over more than three decades, compound growth transformed those regular deposits into a seven-figure retirement portfolio.
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Barzar’s experience is far from unique. Costco Chief Financial Officer Gary Millerchip has said that thousands of the company’s hourly employees in the United States now have more than $1 million saved in their 401(k) retirement accounts.
Costco has earned a reputation for paying significantly more than many retailers while investing heavily in employee retention. The company recently increased the maximum hourly wage for longtime employees to $32.90, expanded annual bonus opportunities, and added additional paid vacation time for workers with 30 years of service.
Strong benefits retain employees
The strategy appears to be paying off. According to data cited by The Wall Street Journal, Costco’s one-year employee turnover rate is about 7 percent, dramatically lower than the retail industry average of roughly 60 percent.
The company has argued that retaining experienced employees ultimately costs less than continually recruiting and training replacements. Barzar said Costco’s benefits became invaluable during one of the most difficult periods of his life. Within a matter of months, his son-in-law died, and his wife was diagnosed with Stage 3 brain cancer.
Costco’s health insurance covered the full cost of her three brain surgeries. To care for his family, Barzar took nearly a year of paid leave and also utilized the company’s counseling services. When he eventually returned to work on a part-time basis, his hourly pay remained unchanged. “You don’t realize how valuable those benefits are until tragedy strikes,” he recalled.
Experts weigh in
Financial experts say Barzar’s story highlights an often-overlooked lesson for job seekers: Long-term wealth isn’t determined solely by wages. Employer-sponsored retirement plans, matching contributions, comprehensive health insurance, and stable long-term employment can all play a significant role in building financial security over time.
Experts recommend evaluating benefits such as 401(k) plans, employer matching programs, health insurance coverage, paid leave, and vesting schedules, not just salary, when comparing job offers.
Employee retention can also offer important clues. Companies with consistently low turnover often invest more heavily in wages, benefits, and career development, advantages that can compound over decades just as powerfully as investment returns.
Barzar’s nearly 40-year career illustrates how disciplined saving, patience, and access to strong workplace benefits can enable even hourly workers to build substantial retirement wealth over time.
