What Foot Locker Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Healthcare Provider for Foot Locker: Foot Locker primarily offers health insurance coverage through a partnership with UnitedHealthcare. This collaboration allows Foot Locker employees access to a variety of health benefits, ensuring comprehensive coverage for their medical needs. Potential Healthcare Cost Increases in 2026: As we approach 2026, Foot Locker employees may face significant healthcare cost increases, largely driven by the anticipated expiration of enhanced subsidies for Affordable Care Act (ACA) marketplace plans. Insurers are projecting premium hikes of up to 66% in specific regions, and without congressional intervention to extend these subsidies, many employees could see their out-of-pocket costs rise dramatically-possibly exceeding 75%. This combination of heightened medical expenses and the loss of financial support from federal initiatives presents a challenging landscape for Foot Locker employees relying on ACA coverage. As these costs escalate, proactive financial planning becomes crucial for affected individuals. Click here to learn more

For example, Foot Locker 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 Foot Locker 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 Foot Locker 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 Foot Locker employees.

Simply for political, economic, and social reasons, many Foot Locker 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 Foot Locker.

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 Foot Locker 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, Foot Locker 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. 'Foot Locker 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 types of contributions can employees make to the Foot Locker 401(k) plan?

   Employees at Foot Locker can make pre-tax contributions, Roth (after-tax) contributions, and catch-up contributions if they are eligible.

   Does Foot Locker offer any employer matching contributions to the 401(k) plan?

   Yes, Foot Locker provides an employer match on employee contributions up to a certain percentage, which is outlined in the plan details.

   When can employees at Foot Locker enroll in the 401(k) plan?

   Employees can enroll in the Foot Locker 401(k) plan during their initial onboarding or during the annual open enrollment period.

   What is the vesting schedule for employer contributions in Foot Locker's 401(k) plan?

   Foot Locker has a vesting schedule that typically requires employees to work for a certain number of years before they fully own the employer contributions.

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

   Yes, Foot Locker allows employees to take loans from their 401(k) accounts under certain conditions as specified in the plan.

   How can Foot Locker employees access their 401(k) account information?

   Employees can access their Foot Locker 401(k) account information through the plan's online portal or by contacting the plan administrator.

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

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

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

   Foot Locker offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

   How often can Foot Locker employees change their contribution amounts?

   Employees can change their contribution amounts to the Foot Locker 401(k) plan at any time, subject to the plan’s guidelines.

   What happens to Foot Locker employees' 401(k) savings if they leave the company?

   If Foot Locker employees leave the company, they can roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the Foot Locker plan if eligible.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Foot Locker's Pension Plan: Foot Locker offers a Defined Benefit Pension Plan to long-tenured employees. This plan is based on the Final Average Pay (FAP) formula, which considers an employee's highest five consecutive years of earnings in the last ten years of employment to determine the benefit payout. The retirement benefits under this plan are calculated using the employee's length of service and final average pay. Foot Locker requires employees to have completed at least five years of service to be vested in the pension plan. The qualifying retirement age is typically 65, with early retirement options available starting at age 55 with applicable reductions. Foot Locker's 401(k) Plan: Foot Locker's 401(k) plan, known as the Foot Locker Savings Plan, allows employees to make pre-tax contributions from their salary. Foot Locker matches contributions up to 5% of the employee's salary for eligible employees who have completed one year of service. The plan also offers a Roth 401(k) option, allowing after-tax contributions. Employees are immediately vested in their own contributions, while company matching contributions vest over a period of three years. The plan includes a range of investment options, including mutual funds and target-date funds
   Restructuring Layoffs: In 2023, Foot Locker announced several significant layoffs as part of their broader effort to simplify their business operations. These layoffs included corporate and support roles aimed at saving approximately $18 million annually. Additionally, the company decided to shutter its Sidestep banner in Europe and sell off other non-core business units like the Eastbay Team Sales division. This move reflects the broader trend in the retail industry where companies are trimming their workforces to bolster the bottom line against inflation and economic uncertainties. It's essential to address these changes due to the current economic and investment environment, where companies are increasingly focusing on efficiency to navigate challenges.
   Foot Locker offers stock options and Restricted Stock Units (RSUs) as part of its compensation package to incentivize and retain key employees. The company typically grants these awards to executives and certain high-level employees, with eligibility and specific terms determined by their role and performance. Foot Locker's stock options allow employees to purchase company stock at a predetermined price, usually after a vesting period. RSUs, on the other hand, are awarded as shares of stock that vest over time, providing employees with ownership once the vesting criteria are met. These stock awards are key components of Foot Locker’s executive compensation strategy, aligning the interests of employees with those of shareholders by linking compensation to company performance.
   Foot Locker offers a comprehensive health benefits package to eligible employees, which includes medical, dental, and vision insurance. The company focuses on providing flexible and affordable healthcare options, emphasizing whole-person health, which includes physical, mental, and financial well-being. Employees have expressed satisfaction with the coverage, particularly the inclusion of mental health services, which has been a growing trend in employee benefits. Additionally, Foot Locker's healthcare plan covers prescription drugs, although rising costs have posed challenges for employees​ (USA Insurance Leaders)​ (USA Insurance Leaders).