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Healthcare Provider Update: FedEx's healthcare provider is primarily Cigna, which partners with the company to offer health insurance solutions to its employees through a range of plans, including High Deductible Health Plans paired with Health Savings Accounts. In 2026, FedEx employees may face significant healthcare cost increases, mirroring a broader trend across the nation. With the expected elimination of enhanced ACA premium subsidies, some workers could see their out-of-pocket premium costs surge by over 75%. Coupled with the anticipated double-digit rate hikes from major insurers and rising medical expenses, the financial burden on employees is poised to escalate sharply, potentially impacting their overall healthcare affordability. Click here to learn more
'Retiring overseas can be rewarding, but FedEx employees must stress-test their income, health care access, and contingency plans against geopolitical and currency risks before making a decades-long commitment. FedEx employees to approach this decision with disciplined planning and professional guidance to preserve flexibility and long-term stability.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Retiring abroad may offer lifestyle appeal, but FedEx employees should evaluate long-term income durability, health care access, and cross-border complexities before relocating. I believe FedEx employees can benefit most from building flexible strategies that balance opportunity with prudent risk management.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
1. The practical appeal of retiring abroad and why it may be tempting for high-earning professionals.
2. The core risks that can disrupt long-term retirement income and access to care.
3. The planning steps that can help you prepare for volatility while preserving flexibility.
by Neva Bradley, CFP®, Wealth Enhancement
For many people, retiring abroad can seem like a fantasy. Reduced living expenses. Views of the ocean. Warm temperatures. A life that moves more slowly. For many FedEx employees who have built substantial retirement savings, the idea of enjoying those rewards overseas can feel well-earned after decades of dedicated service. The experience has long appealed to American retirees, particularly during extended periods of political and economic stability in their destination of choice.
However, conditions can shift quickly, even in places that have historically appeared steady. For FedEx professionals over 55 who have accumulated $2 million or more, retiring abroad involves more than a lifestyle discussion—it calls for a thorough evaluation of potential risks.
There is never a lasting promise of stability.
Numerous locations that are favored by American seniors have long been considered hospitable. But conditions can change in any nation. Retirement planning should not only focus on positive scenarios, but also on low-probability, high-impact events that could potentially disrupt income, access to assets, or long-term stability.
The choice to retire is not made in five years. This approach spans several decades. Potential interruptions and evolving circumstances should be taken into consideration during planning, especially for FedEx employees who may rely on a combination of pension benefits, 401(k) savings, and taxable investment accounts to fund their retirement.
Health Care Considerations in Foreign Countries
Even before leaving the United States, one of the largest risks in retirement is health care. There are restrictions on Original Medicare coverage outside of the U.S. Except in extremely rare and limited instances, it generally does not cover care received overseas. As a result, retirees who live abroad frequently arrange private international health insurance or other types of coverage to bridge the gap.
Returning to the United States for emergency medical treatment can be very expensive, particularly if evacuation is required. Depending on the location and physical condition, air ambulance evacuation can cost between $20,000 and $200,000, according to U.S. State Department guidance. 1
For FedEx retirees accustomed to robust employer-sponsored health care during their careers, understanding these limitations is critical before relocating abroad.
Retirement may last 25 to 30 years for individuals with longer life expectancy trends. According to the Social Security Administration, a 65-year-old today has a significant likelihood of living into their 80s, and many will live longer. 2
Access to treatment remains a major factor, even as medical needs and related expenses may rise over time.
Risks That May Be Outside Your Control
Retiring abroad can introduce additional uncertainties, such as:
- Currency fluctuations that affect income
- Foreign tax policy changes
- Limitations on property ownership
- Changes to residency or visa requirements
- Political unrest in the region
These are variables retirees do not influence directly.
Asking what to do if stability shifts is part of prudent retirement preparation. FedEx employees who have worked globally may be familiar with geopolitical changes, but personal retirement exposure differs from corporate exposure.
Planning With Clear Perspective
This does not mean retiring overseas is inappropriate. To preserve flexibility, many individuals establish adaptable arrangements—spending part of the year abroad and part in the United States, maintaining liquidity reserves, and keeping strong U.S.-based financial relationships.
The objective is not to pass on opportunities. The objective is to prepare thoughtfully for volatility. Retirement should feel steady rather than uncertain.
It is important to stress-test your income strategy, review health care coverage options, maintain accessible cash reserves, and understand the tax implications that may apply across different countries if you are considering retiring abroad.
How The Retirement Group Assists FedEx Employees
The Retirement Group works with FedEx employees to help evaluate geopolitical, health care, and financial factors that may influence a long-term retirement strategy. Our team reviews pension options, 401(k) strategies, tax considerations, and global retirement exposures in a coordinated manner.
You can reach our team by calling (800) 900-5867 if you would like help building a retirement plan that accounts for both opportunity and risk.
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- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. U.S. Department of State, Bureau of Consular Affairs. “ Medicine and Health. ” Travel.State.Gov , 11 Aug. 2025.
2. Social Security Administration. ' Actuarial Life Table ,' 2025 Trustees Report. 2025.
Other Resources:
1. Centers for Medicare & Medicaid Services. Medicare Coverage Outside the United States . CMS Product No. 11037, Dec. 2024, www.medicare.gov/publications/11037-medicare-coverage-outside-the-united-states.pdf .
3. Social Security Administration. Retirement Information for Medicare Beneficiaries . Publication No. 05-10529, Jan. 2026, www.ssa.gov/pubs/EN-05-10529.pdf .
4. Internal Revenue Service. Tax Guide for U.S. Citizens and Resident Aliens Abroad . Publication 54, Jan. 2025, www.irs.gov/pub/irs-pdf/p54.pdf .
What are the implications of the Funding Target Attainment Percentage for FedEx Corporation employees, and how does it impact the security of the pension benefits offered by FedEx Corporation? This question seeks to explore the nuances of the funding target attainment percentage as reported in the annual funding notice, examining how this metric not only reflects the financial health of FedEx Corporation's pension plan but also how it affects employee confidence in future benefit payments and retirement planning.
Funding Target Attainment Percentage: The Funding Target Attainment Percentage for FedEx Corporation indicates the degree to which the pension plan is funded. A percentage of 101.33% for 2022 suggests that the plan has sufficient assets to cover its liabilities, providing security for employees' pension benefits. This high percentage likely increases employee confidence in the stability and reliability of their future pension payouts, essential for long-term retirement planning.
How does the merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan influence the benefits currently available to FedEx Corporation employees? This question aims to delve into the practical changes that may arise due to this merger, assessing whether it aligns with employee expectations regarding their pension benefits and how the transition process is managed by FedEx Corporation.
Merger of Pension Plans: The merger of the FedEx Freight Pension Plan into the FedEx Corporate Employees’ Pension Plan appears to have been strategically managed to maintain benefit stability. Despite increasing liabilities by 5.3%, the merger was structured to ensure no negative impact on the benefit amounts payable to participants from either plan, preserving the expected pension benefits for all affected FedEx Corporation employees.
In terms of investment strategies, what measures does FedEx Corporation implement to ensure that its pension plan investments align with the long-term liabilities expected to be paid out to retirees? This question encourages an exploration of the investment policies in place, examining the asset allocations and risk management strategies that FedEx Corporation employs to ensure sustainable funding for its pension obligations, which could potentially include detailed analyses of stocks, debts, and alternative investments.
Investment Strategies: FedEx Corporation employs a diversified investment strategy across equities, fixed income, and alternative investments, aiming to meet long-term pension liabilities. This approach, which includes both active management strategies and the limited use of derivatives, is designed to generate returns that exceed market indices, thus ensuring adequate funding of pension obligations.
What options do employees of FedEx Corporation have for accessing their pension plan statements, and how frequently are these statements generated? The focus here is to understand the communication strategies employed by FedEx Corporation regarding pension benefit statements, including technological access points and the importance of these documents for employee financial planning.
Pension Plan Statements: FedEx Corporation provides annual pension plan statements through their Retirement Service Center, available electronically each fall. Employees can access their statements online or request them if notifications are not received, ensuring transparency and aiding in personal financial planning.
How are contributions to the FedEx Corporation Employees’ Pension Plan determined, and what role do excess contributions play in the plan's overall funding strategy? This question aims to educate employees about how the company balances mandatory contribution levels with potential excess contributions, exploring how these factors interact to influence the plan's solvency and employee benefits.
Contributions to the Pension Plan: Contributions to the FedEx Corporation Employees' Pension Plan are calculated to meet at least the minimum legal requirement and potentially include voluntary excess contributions. These excess contributions can help manage the plan's funding level and ensure its solvency, benefiting overall pension security for employees.
What types of benefits are guaranteed under the Pension Benefit Guaranty Corporation (PBGC) for FedEx Corporation employees, and what limitations exist that employees should be aware of? By focusing on the guaranteed benefits, this question prompts a discussion on the security of specific benefits provided by FedEx Corporation and highlights limitations, allowing employees to understand their rights fully.
PBGC Guarantee: The Pension Benefit Guaranty Corporation guarantees certain types of benefits for FedEx Corporation employees, such as pension benefits at normal retirement age and most early retirement benefits. However, there are limitations, such as exclusions for benefits without vested rights and recently increased benefits, which employees should be aware of to fully understand their pension security.
In what ways does the FedEx Corporation plan to adjust its pension funding strategy in light of changing federal laws that impact pension obligations? Employees are encouraged to consider how legislative changes influence corporate policies surrounding retirement benefits and the proactive strategies FedEx Corporation might take to remain compliant while ensuring the security of employee pensions.
Adjustments to Funding Strategy: FedEx Corporation is likely to adjust its pension funding strategy in response to legislative changes affecting pension obligations, such as those introduced by recent acts adjusting how pension liabilities are calculated. This proactive approach aims to ensure compliance with new laws while continuing to secure the financial health of the pension plan.
What are the steps that FedEx Corporation employees must take if they are considering retirement, particularly in how to navigate the pension plan and gain access to their benefits? This question aims to provide clarity on the retirement process, ensuring that employees are equipped with the necessary information regarding required documentation, timelines, and points of contact within FedEx Corporation.
Steps for Retirement Planning: Employees considering retirement should contact the FedEx Retirement Service Center to navigate their pension plan benefits. This process involves understanding necessary documentation, timelines, and available support, facilitating a smooth transition into retirement.
How does FedEx Corporation plan to manage potential funding shortfalls in the pension plan, and what mechanisms are in place for notifying plan participants should such an event occur? Employees would need to understand the proactive measures put in place by FedEx Corporation to address funding-related challenges while also knowing what this means for their benefits.
Managing Funding Shortfalls: In the event of potential funding shortfalls, FedEx Corporation has policies in place to manage such situations, including strategic contributions to mitigate shortfalls. The company maintains transparency with plan participants about funding levels and any significant changes affecting the pension plan.
For those seeking more information about their pensions and retirement options, how can FedEx Corporation employees contact relevant departments, and what resources are available for assistance? This question provides an opportunity for employees to familiarize themselves with contact points such as the FedEx Retirement Service Center, emphasizing the importance of open communication channels for addressing inquiries related to their pensions. Feel free to consult the provided document for more in-depth exploration of these topics.
Contacting for Pension Information: FedEx Corporation employees seeking more information about their pensions or retirement options can contact the FedEx Retirement Service Center. This center provides essential resources and support, ensuring employees have access to all necessary information regarding their retirement planning.
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