Tony Barzar doesn’t look like a millionaire. He shows up for his shift at a Costco in Tucson, Arizona, puts on his black Hoka sneakers, and spends the day helping shoppers at the self-checkout registers. But at 60 years old, after almost 40 years on the job, his bank account tells a different story. He has more than $1 million saved for retirement, a house with a pool, and two European vacations behind him.
How he became a millionaire
Barzar earns $32.90 an hour, after Costco recently raised its top hourly pay from $31.90. It is of course a good wage, but it is not what made him rich. What did was time. He started at the company then called Price Club in 1986, gathering shopping carts in the parking lot for $5.85 an hour. When Costco bought the chain in 1993, it switched employees from a pension to a 401(k), and Barzar began putting small amounts of each paycheck into the account. Decades of steady contributions, left to grow, eventually pushed his retirement savings past $1 million. A 401(k), named after a section of the US tax code, is a retirement savings plan given by employers. It comes with tax benefits, and employers may contribute money to help their employees with savings. 401(k) retirement plans are primarily regulated and governed by two federal government authorities, the Internal Revenue Service (IRS) and the Department of Labor (DOL).
He is not alone in this game. According to the Wall Street Journal, Costco’s chief financial officer, Gary Millerchip, said “many thousands” of the company’s hourly workers now have over $1 million in their 401(k) accounts.
Costco also rewards people who stick around. Workers get bigger yearly bonuses and an extra week of vacation once they hit 30 years on the job. The company’s health plan helps too, a regular doctor’s visit costs just $15, and seeing a specialist costs $25, both much cheaper than what most Americans pay. So, this coverage mattered in a very real way last year, after Barzar’s wife was diagnosed with stage 3 brain cancer; his insurance covered the full cost of her three brain surgeries, and he took nearly a year of paid leave to care for her.
From cart-pusher to cashier
Barzar’s path inside Costco was not really a straight line. After a stint gathering carts, he moved indoors to work as an early-morning stocker, unloading trucks and labeling boxes. Five years in, the early hours wore on him, so with a new baby at home, he shifted to greeting shoppers at the front door, and eventually became a cashier earning around $10 an hour. He actually stuck to that job as he liked handling money and talking with customers.
He did consider leaving at times. In his 20s he applied several times to become a firefighter, like an older brother, but never passed the entrance exam. Around the same time, Costco was growing fast, which he told the Journal gave him a reason to stay rather than start over somewhere else.
He turned down a promotion
Costco once offered Barzar a job as a supervisor. He said no. He likes working directly with customers too much to give it up, and feels he can mentor newer staff more effectively as a peer than as a boss. Barzar could retire right now if he wanted to. He isn’t in a rush. He told the Journal he never expected his family to end up where they are today, and credited the company for that.
Why Costco likes workers who stay
At a lot of companies, employees who stay for decades without chasing a promotion get overlooked, and long-tenured staff are often seen mainly as an added expense. Costco sees it differently. It trains managers to treat cashiers as specialists whose speed and friendliness can shape a shopper’s entire visit, the fastest traditional cashiers ring up around 70 customers an hour, versus an average of 57. Some stores have even created a “culture coach” role, so experienced workers like Barzar can mentor others without becoming managers.
It seems to be working. The Wall Street Journal reports that after an employee’s first year, Costco’s turnover rate drops to around 7%, far below typical retail rates. The company has long paid more than many competitors specifically to keep good workers from leaving.
That loyalty comes with trade-offs, though. Travis Maze, the Tucson warehouse’s general manager, told the Journal that while the retirement savings are good for workers, they sometimes lead longtime employees to retire earlier than the company would like. Losing an experienced worker technically lowers average wages and helps profits in the short term, he said, but it comes “at the expense of experience.”
Barzar’s millionaire journey was built on a simple mix of patience and long-term benefits. Nearly four decades at Costco allowed his 401(k) holdings to grow, while steady pay, annual bonuses and affordable company-sponsored healthcare helped keep costs in check. Rather than chasing promotions or quick wealth, he stayed the course and over time, that consistency helped him build a million-dollar retirement nest egg and a comfortable life.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a qualified professional before making investment decisions.
