What American Family Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider for American Family American Family Insurance offers health insurance primarily through its partnership with HealthPartners and other regional health systems, depending on specific plan availability and state regulations. They provide a range of health coverage options, including individual and family plans as part of their broader insurance portfolio. Brief on Potential Healthcare Cost Increases in 2026 As the healthcare landscape evolves, significant rises in Affordable Care Act (ACA) premiums are expected in 2026, with average increases projected at around 20%. This surge is attributed to various factors, including escalating medical costs, the potential expiration of enhanced federal premium subsidies, and aggressive rate hikes from major insurers like UnitedHealthcare, which is requesting increases as high as 66.4% in certain states. Consequently, if these subsidies are not extended, many consumers could experience a staggering 75% increase in their out-of-pocket premiums, pricing out a substantial segment of middle-income families from adequate coverage. As a result, 2025 becomes a crucial year for consumers to proactively strategize to mitigate the financial impacts of skyrocketing healthcare costs. Click here to learn more

For example, American Family 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 American Family 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 American Family 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 American Family employees.

Simply for political, economic, and social reasons, many American Family 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 American Family.

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 American Family 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, American Family 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. 'American Family 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 American Family offer to its employees?

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

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

   Yes, American Family provides a matching contribution to employee contributions made to the 401(k) plan, subject to certain limits.

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

   Employees of American Family are typically eligible to participate in the 401(k) plan after completing a specified period of service.

   Can American Family employees choose how to invest their 401(k) contributions?

   Yes, American Family employees can choose from a variety of investment options within the 401(k) plan to tailor their investment strategy.

   What is the maximum contribution limit for American Family's 401(k) plan?

   The maximum contribution limit for American Family's 401(k) plan is determined by IRS regulations, which may change annually.

   Does American Family allow for catch-up contributions in the 401(k) plan?

   Yes, American Family allows employees aged 50 and older to make catch-up contributions to their 401(k) plan.

   How often can American Family employees change their contribution amounts to the 401(k) plan?

   American Family employees can typically change their contribution amounts to the 401(k) plan on a quarterly basis or as specified in the plan documents.

   Are loans available from the 401(k) plan at American Family?

   Yes, American Family's 401(k) plan may allow employees to take loans against their vested balance, subject to specific terms and conditions.

   What happens to my 401(k) balance if I leave American Family?

   If you leave American Family, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the plan if allowed.

   Does American Family offer financial education resources for employees regarding the 401(k) plan?

   Yes, American Family provides financial education resources to help employees make informed decisions about their 401(k) savings.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   American Family Insurance provides a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and American Family matches a percentage of eligible compensation. The plan includes various investment options, such as target-date funds and mutual funds. Financial planning resources and tools are available to help employees manage their retirement savings.
   Layoffs and Restructuring: In October 2023, American Family Insurance confirmed staff reductions aimed at increasing efficiencies across its operations. The layoffs affected various positions, including leadership roles, as the company consolidates areas that provide similar functions across its multiple insurance brands (Sources: Insurance Journal, The Insurer). Financial Performance: The company reported a significant underwriting loss of $1.5 billion in 2022, attributed to inflation and high catastrophe claims. Despite these losses, American Family maintains a strong financial position with plans to reinvest in products and services (Sources: Carrier Management, AM Best). Operational Changes: The restructuring aligns with American Family's strategy to streamline processes and improve cost management, which is essential for sustaining long-term growth and delivering value to customers (Sources: Insurance Journal, The Insurer).
   American Family Insurance grants RSUs that vest over time, providing shares upon vesting. Stock options are also part of their compensation, allowing employees to buy shares at a fixed price.
   American Family Insurance has consistently enhanced its employee healthcare benefits to adapt to the evolving needs of its workforce. For 2023, the company maintained comprehensive medical, dental, and vision plans. These plans offer a range of services including preventive care, major dental work, and vision care, which covers eye exams, lenses, and frames. Mental health support is also a significant part of the benefits package, with access to counseling services and wellness programs designed to support employees' mental and emotional well-being. These offerings are designed to ensure that employees have access to quality healthcare, promoting a healthier work environment and improving overall productivity. In 2024, American Family Insurance continued to refine its healthcare benefits, placing a greater emphasis on flexibility and comprehensive coverage. The company introduced enhancements such as expanded mental health resources and wellness programs aimed at managing chronic conditions and preventive care. This is particularly important given the current economic and political climate, where healthcare costs are rising and the need for robust employee support systems is critical. The company also provides various options for employees to manage healthcare costs through Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). By continuously updating its benefits offerings, American Family Insurance ensures that its employees are well-supported in maintaining their health and well-being.