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

Healthcare Provider Update: Amazon has partnered with One Medical as its primary healthcare provider. One Medical offers a membership model aimed at providing accessible and efficient healthcare, including virtual visits and same-day appointments. As we approach 2026, healthcare costs are projected to rise significantly, a trend attributed to various factors including the potential expiration of enhanced federal premium subsidies associated with the Affordable Care Act (ACA). Many states are bracing for steep premium hikes, with some individual markets seeing increases exceeding 60%, which could push out-of-pocket costs for consumers up by more than 75%. This perfect storm of escalating medical expenses, combined with insurers pursuing aggressive rate hikes, underscores the urgent need for consumers to prepare for the financial implications of rising healthcare costs in the coming year. Click here to learn more

For example, Amazon 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 Amazon 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 Amazon 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 Amazon employees.

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

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 Amazon 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, Amazon employees who are retiring abroad need to plan carefully.

Featured Video

Articles you may find interesting:

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. 'Amazon 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 Amazon offer to its employees?

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

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

   Yes, Amazon provides a matching contribution for employee contributions to the 401(k) plan, up to a certain percentage.

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

   Amazon employees can enroll in the 401(k) plan through the employee benefits portal after meeting eligibility requirements.

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

   Typically, Amazon employees are eligible to participate in the 401(k) plan after completing a specified period of service.

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

   Amazon's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

   Can Amazon employees change their contribution percentage to the 401(k) plan?

   Yes, Amazon employees can change their contribution percentage at any time through the employee benefits portal.

   What is the maximum contribution limit for Amazon employees participating in the 401(k) plan?

   The maximum contribution limit for Amazon employees is set by the IRS and may change annually; employees should check the current limits.

   Does Amazon allow employees to take loans against their 401(k) savings?

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

   What happens to an Amazon employee's 401(k) if they leave the company?

   If an Amazon employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, leave it with Amazon, or cash it out.

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

   Yes, there may be fees associated with managing the investments within Amazon's 401(k) plan, which are disclosed in the plan documents.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   401(k) plan with company match, various investment options and financial planning resources.
   Amazon announced its largest layoffs in company history, affecting over 27,000 employees in 2023-2024. This includes 18,000 roles cut in January 2023 and an additional 9,000 announced in March 2023. The layoffs impact various divisions, including Amazon Web Services (AWS), People Experience and Technology (PXT), advertising, and Twitch. These decisions are part of Amazon's efforts to streamline operations and cut costs amidst declining retail sales and economic uncertainty. Amazon CEO Andy Jassy emphasized the need to be leaner while continuing to invest in key long-term customer experiences. Employees affected by the layoffs are being provided with separation payments, transitional health insurance benefits, and external job placement support.
   Amazon.com Inc. provides stock options (SOs) and Restricted Stock Units (RSUs) as part of its compensation. SOs allow employees to buy stock at a set price after vesting. RSUs vest over four years, with a specific schedule: 5% after the first year, 15% after the second, and 20% every six months for the remaining two years. In 2022, Amazon emphasized performance-based RSUs. In 2023, Amazon adjusted equity strategies to align with market conditions. By 2024, Amazon expanded RSU programs to include more employees. Executives, management, and broader employees are eligible for these plans. [Source: Justia, 2022 Employee Stock Plan; MyStockOptions; Consilio Wealth Advisors]
   Amazon offers a comprehensive and competitive benefits package aimed at supporting the diverse needs of its employees. For 2023, Amazon provided a range of healthcare options, including medical, dental, and vision plans that begin on the first day of employment. These plans include Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) to help employees manage out-of-pocket healthcare expenses. Amazon also expanded its mental health resources, offering free counseling sessions, 24/7 virtual mental health support through the Twill app, and specialized support for children's mental health through a partnership with Brightline. These enhancements underscore Amazon’s commitment to supporting the well-being of its workforce. In 2024, Amazon continues to build on its robust benefits offerings. The company has introduced additional wellness programs, including emergency savings funds and financial assistance programs, to help employees prepare for unexpected expenses. Moreover, Amazon has improved its paid parental leave policies, providing up to 20 weeks of paid leave for birth parents and six weeks for eligible supporting parents. This holistic approach to employee benefits is particularly important in today’s economic and political climate, where healthcare affordability and access are critical issues. By continually updating its benefits package, Amazon ensures its employees are well-supported in maintaining their health and financial security.