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

Healthcare Provider Update: Alight Solutions is partnered with various healthcare providers to support its employee benefits initiatives, with national insurers such as UnitedHealthcare and Cigna frequently featured in their offerings. Alight focuses on delivering customized health plans that cater to the diverse needs of its workforce while emphasizing cost-efficiency and quality of care. As we look ahead to 2026, Alight employees should brace for notable increases in healthcare costs. With projections indicating premiums for Affordable Care Act (ACA) plans could surge by as much as 66% in some states, the impact will be significant. Additionally, the anticipated expiration of enhanced federal subsidies could exacerbate out-of-pocket expenses, with many households potentially facing a chilling 75% rise in monthly premiums. Amidst this landscape, it is crucial for employees to carefully review benefit changes and explore strategies to manage increasing healthcare expenses effectively. Click here to learn more

For example, Alight 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 Alight 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 Alight 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 Alight employees.

Simply for political, economic, and social reasons, many Alight 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 Alight.

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 Alight 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, Alight 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. 'Alight 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 is the primary purpose of Alight's 401(k) Savings Plan?

   The primary purpose of Alight's 401(k) Savings Plan is to help employees save for retirement through tax-advantaged contributions.

   How can Alight employees enroll in the 401(k) Savings Plan?

   Alight employees can enroll in the 401(k) Savings Plan through the company’s HR portal or by contacting the benefits department for assistance.

   Does Alight provide a matching contribution to the 401(k) Savings Plan?

   Yes, Alight offers a matching contribution to the 401(k) Savings Plan to encourage employees to save for their retirement.

   What types of investment options are available in Alight's 401(k) Savings Plan?

   Alight's 401(k) Savings Plan includes a variety of investment options, such as mutual funds, target-date funds, and stable value funds.

   Can Alight employees change their contribution percentage to the 401(k) Savings Plan?

   Yes, Alight employees can change their contribution percentage at any time by accessing their account online or contacting HR.

   What is the minimum age requirement to participate in Alight's 401(k) Savings Plan?

   The minimum age requirement to participate in Alight's 401(k) Savings Plan is typically 21 years old.

   Are there any fees associated with Alight's 401(k) Savings Plan?

   Yes, Alight's 401(k) Savings Plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

   How often can Alight employees make changes to their investment allocations in the 401(k) Savings Plan?

   Alight employees can typically make changes to their investment allocations in the 401(k) Savings Plan on a quarterly basis or as specified in the plan guidelines.

   What happens to Alight employees' 401(k) Savings Plan when they leave the company?

   When Alight employees leave the company, they can choose to roll over their 401(k) savings into an IRA or a new employer's plan, or they may cash out their account, subject to taxes and penalties.

   Is there a loan option available within Alight's 401(k) Savings Plan?

   Yes, Alight's 401(k) Savings Plan may offer a loan option, allowing employees to borrow against their savings under certain conditions.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Alight has announced a restructuring plan that includes significant layoffs, impacting about 10% of its workforce. The company is shifting its focus to digital solutions and outsourcing to streamline operations. Additionally, they are revising their benefits and pension plans to align with the new business model.