What Coca-Cola Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Coca-Cola's primary healthcare provider is Anthem Blue Cross Blue Shield, offering coverage options for its employees that includes a variety of plan choices to address their diverse healthcare needs. As we look ahead to 2026, significant increases in healthcare costs are anticipated, particularly in the wake of potential changes to the Affordable Care Act. A perfect storm of factors is contributing to this forecast; namely, the expiration of enhanced federal premium subsidies may lead many consumers to face out-of-pocket premium increases exceeding 75%. Coupled with anticipated medical cost inflation, which is projected to rise around 8% annually, employees of Coca-Cola and others could see their healthcare expenses surge dramatically, prompting companies to adapt their health benefits strategies. Click here to learn more

For example, Coca-Cola 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 Coca-Cola 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 Coca-Cola 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 Coca-Cola employees.

Simply for political, economic, and social reasons, many Coca-Cola 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 Coca-Cola.

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 Coca-Cola 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, Coca-Cola 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. 'Coca-Cola 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 Coca-Cola 401(k) plan?

   The Coca-Cola 401(k) plan is a retirement savings plan that allows eligible employees to save a portion of their paycheck on a pre-tax basis, helping them prepare for retirement.

   How can I enroll in the Coca-Cola 401(k) plan?

   You can enroll in the Coca-Cola 401(k) plan by accessing the employee benefits portal or contacting the HR department for assistance with the enrollment process.

   What is the employer match for the Coca-Cola 401(k) plan?

   Coca-Cola offers a competitive employer match for contributions made to the 401(k) plan, which can significantly enhance your retirement savings.

   When can I start contributing to the Coca-Cola 401(k) plan?

   Eligible employees can start contributing to the Coca-Cola 401(k) plan after completing a specified waiting period, typically upon hire or after a designated time frame.

   What types of investments are available in the Coca-Cola 401(k) plan?

   The Coca-Cola 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock, allowing employees to diversify their retirement savings.

   How much can I contribute to the Coca-Cola 401(k) plan each year?

   Employees can contribute up to the IRS annual limit for 401(k) plans, which is adjusted periodically. For 2023, the limit is $22,500, with an additional catch-up contribution for those aged 50 and over.

   Does Coca-Cola offer a Roth 401(k) option?

   Yes, Coca-Cola offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings, which can grow tax-free.

   Can I take a loan from my Coca-Cola 401(k) plan?

   Yes, employees may have the option to take a loan from their Coca-Cola 401(k) plan, subject to specific terms and conditions outlined in the plan documents.

   What happens to my Coca-Cola 401(k) plan if I leave the company?

   If you leave Coca-Cola, you can choose to roll over your 401(k) balance to another retirement account, cash out your balance (subject to taxes and penalties), or leave it in the Coca-Cola plan if eligible.

   How often can I change my contributions to the Coca-Cola 401(k) plan?

   Employees can typically change their contribution amounts to the Coca-Cola 401(k) plan at any time, subject to the plan's specific guidelines and deadlines.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Coca-Cola offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan calculates retirement benefits based on years of service and final average pay. The 401(k) plan includes company matching contributions, with various investment options available to employees, such as target-date funds and mutual funds. Coca-Cola provides financial education and planning resources to help employees manage their retirement savings.
   Coca-Cola has announced a major global reorganization, which includes offering voluntary separation packages to 4,000 employees and implementing layoffs. The company continues to offer a comprehensive benefits package, including a 401(k) plan with company match and various health and wellness programs. Staying informed about these benefits is vital in the current political climate.
   Coca-Cola offers RSUs as part of its equity compensation, vesting over time and converting into shares. They also provide stock options, enabling employees to buy shares at a set price.