What Aflac Employees Need to Consider Before Making the Leap to Retire Abroad

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For example, Aflac employees planning on moving overseas need to have a clear plan of action to overcome the challenges of acquiring residency and citizenship in another country,' according to Brent Wolf from The Retirement Group at Wealth Enhancement Group.

Kevin Landis of The Retirement Group, a division of Wealth Enhancement Group, explains why detailed planning is crucial for Aflac employees who intend to retire abroad. However,

In this article we will discuss:

1. The complexity of obtaining residency or citizenship abroad: Discussing the legal, financial, and cultural issues that are involved in moving overseas for Aflac employees.

2. The necessity of professional advice and planning: Emphasizing the importance of thorough preparation and professional advice to ensure a smooth transition to retiring abroad.

3. Tax advantages and financial planning for retirees: Explaining the possible tax advantages that are available through international treaties and the strategic financial planning that needs to be done for the retirement savings of Aflac employees.

Simply for political, economic, and social reasons, many Aflac employees are looking to secure citizenship or residency in other countries if the United States is not as attractive as it once was. But, getting residency in another country and, perhaps, citizenship is not as simple as just buying a plane ticket and setting an itinerary.

This is because there are many processes that may take a few years to accomplish at times. The more people who are considering these options, the more difficult these choices become. It is therefore crucial to identify the legal, financial, and cultural implications that arise in order to ensure a smooth transition to a new home overseas before embarking on this journey.

Without a proper plan and some professional advice, it can be quite a challenge to switch gears and retire during your tenure at Aflac.

The impact of potential tax advantages when retiring abroad will definitely affect your financial position. Many countries, including the United States, have tax treaties that prevent income from being taxed twice. For instance, pensioners are attracted to Portugal by the Non-Habitual Resident (NHR) regime that offers special tax concessions for up to 10 years.

You can enhance your retirement benefits by taking advantage of these perks and seeking the advice of a tax specialist. The IRS notes that because these treaties can be very different it is important to research and seek the advice of a professional (IRS, 2023). These advantages must be used by Aflac employees to enhance their retirement.

Expatriating and retiring is a process of planning a long and beautiful road trip. Just as you would not travel without a map, a well-maintained car, and knowledge of your location, Aflac employees who are retiring abroad need to plan carefully.

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Step by step, you will be guided on how to make your transition to your new home easier, from explaining cultural differences and tax benefits to helping you understand the legal and financial environment. Just as a road trip opens new views and experiences, retirement abroad presents a world of possibilities for a happy and comfortable retirement.

Sources:

1. The Warren Street Wealth Advisors Team. 'Aflac and Large Company Employees.' Warren Street Wealth Advisors, 3 Feb. 2025, Accessed from warrenstreetwealth.com.

2. 'US Taxes for Americans Retiring Abroad in 2025.' MyExpatTaxes, 20 Nov. 2024, Accessed 3 Feb. 2025 from myexpattaxes.com.

3. Toms, Mary, CPA, MBA, MS. 'US Tax Implications of Retiring Abroad: What You Need to Know.' PBMares, 10 Dec. 2024, Accessed 3 Feb. 2025 from pbmares.com.

4. 'Financial Planning for US Expatriates.' The Expat Financial, Accessed 3 Feb. 2025 from expatfinancial.com.

5. 'Retiring Overseas: What You Need to Know About Your US Taxes and Financial Planning.' Expat CPA, Accessed 3 Feb. 2025 from expatcpa.com.

   What type of retirement savings plan does Aflac offer to its employees?

   Aflac offers a 401(k) retirement savings plan to its employees.

   Does Aflac match employee contributions to the 401(k) plan?

   Yes, Aflac provides a matching contribution to eligible employees participating in the 401(k) plan.

   How can employees at Aflac enroll in the 401(k) plan?

   Employees at Aflac can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

   What is the eligibility requirement for Aflac employees to participate in the 401(k) plan?

   Aflac employees are generally eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the employee handbook.

   Can Aflac employees take loans against their 401(k) savings?

   Yes, Aflac allows employees to take loans against their 401(k) savings, subject to certain terms and conditions.

   What investment options are available in Aflac's 401(k) plan?

   Aflac’s 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

   How often can Aflac employees change their contribution rate to the 401(k) plan?

   Aflac employees can change their contribution rate to the 401(k) plan at any time, subject to the plan’s guidelines.

   What is the vesting schedule for Aflac's 401(k) matching contributions?

   Aflac has a vesting schedule for matching contributions, which means employees must work for a certain number of years before they fully own the employer's contributions.

   Are there any fees associated with Aflac's 401(k) plan?

   Yes, Aflac’s 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

   Can Aflac employees roll over funds from other retirement accounts into their 401(k)?

   Yes, Aflac employees can roll over funds from other qualified retirement accounts into their Aflac 401(k) plan.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Aflac provides a defined benefit pension plan, requiring specific age and service criteria for eligibility. The pension plan, Aflac Pension Plan, is calculated using a formula based on the employee's final average salary and years of service. Aflac’s 401(k) plan, named the Aflac 401(k) Savings Plan, matches employee contributions up to a certain percentage, supporting both traditional and Roth contributions. Employees are immediately vested in the 401(k) plan. [Source: Aflac Employee Benefits, 2022, p. 18]
   Aflac has announced several significant updates in 2024. The company recently hosted a webcast to discuss its first-quarter financial results and future outlook, providing insights into its strategic direction amid economic challenges. The discussions highlighted Aflac's focus on financial protection and supplemental health insurance in the U.S. and Japan. Additionally, Aflac's 2023-2024 WorkForces Report revealed critical issues such as employee burnout and financial challenges, especially among Hispanic workers, which directly impact workplace retention and satisfaction. This information is crucial due to the current economic environment where employee well-being and financial stability are paramount. Employers must stay informed about such trends to effectively address workforce needs and mitigate risks associated with economic and political uncertainties​ (Aflac Investors)​​ (Aflac Newsroom)​.
   Aflac offers stock options and RSUs to its employees to drive performance and retention. Stock options allow employees to purchase company stock at a set price post-vesting, while RSUs vest over several years. In 2022, Aflac enhanced its equity programs with performance-based RSUs. The trend continued in 2023 and 2024, with broader RSU availability and performance-linked stock options. Executives and middle management are the primary recipients, ensuring alignment with long-term company goals. [Source: Aflac Financial Results 2022-2024, p. 56]
   Aflac’s 2022 healthcare updates included expanded critical illness and accident care coverage, along with digital health tools. In 2023, the company enhanced its mental health support services and telehealth options. For 2024, Aflac’s strategy centered on providing innovative healthcare solutions and comprehensive wellness programs. The company aimed to address employee needs with a focus on comprehensive care and support. Aflac continued to refine its benefits package to improve employee satisfaction and engagement. Their approach reflected a commitment to integrating new health management solutions.