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

Healthcare Provider Update: Healthcare Provider for Hess: For employees of Hess Corporation, the primary healthcare provider is UnitedHealthcare. This partnership allows Hess employees access to a comprehensive range of health services geared towards providing robust healthcare support. Potential Healthcare Cost Increases in 2026: In 2026, healthcare costs are anticipated to surge significantly for Hess employees due to a perfect storm of factors affecting the healthcare market. Record premium hikes in the Affordable Care Act (ACA) marketplace are expected, with some enrollees facing increases of over 75% if enhanced federal subsidies expire. Insurers are also projecting a sharp rise in medical costs, prompted by inflation and increased demand for services. This scenario could substantially impact out-of-pocket expenses for many employees, necessitating strategic planning and proactive healthcare management in the coming months. Click here to learn more

For example, Hess 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 Hess 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 Hess 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 Hess employees.

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

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 Hess 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, Hess 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. 'Hess 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 Hess 401(k) Savings Plan?

   The Hess 401(k) Savings Plan is a retirement savings plan that allows Hess employees to save a portion of their salary on a tax-deferred basis.

   How does Hess match employee contributions to the 401(k) plan?

   Hess matches employee contributions up to a certain percentage of their salary, helping employees maximize their retirement savings.

   When can I enroll in the Hess 401(k) Savings Plan?

   Employees can enroll in the Hess 401(k) Savings Plan during the initial eligibility period or during the annual open enrollment period.

   What are the eligibility requirements for the Hess 401(k) Savings Plan?

   To be eligible for the Hess 401(k) Savings Plan, employees must be at least 21 years old and have completed a specified period of service with the company.

   Can I change my contribution percentage to the Hess 401(k) Savings Plan at any time?

   Yes, employees can change their contribution percentage to the Hess 401(k) Savings Plan at any time, subject to plan rules.

   What investment options are available in the Hess 401(k) Savings Plan?

   The Hess 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

   Is there a loan option available in the Hess 401(k) Savings Plan?

   Yes, the Hess 401(k) Savings Plan allows eligible employees to take loans against their account balance under certain conditions.

   What happens to my Hess 401(k) Savings Plan if I leave the company?

   If you leave Hess, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the Hess plan, depending on the plan's rules.

   How can I access my Hess 401(k) Savings Plan account information?

   Employees can access their Hess 401(k) Savings Plan account information online through the plan's designated website or by contacting the plan administrator.

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

   Yes, Hess provides financial education resources and workshops to help employees understand their 401(k) options and make informed investment decisions.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Hess Corporation Pension Plan: Pension Plan Name: Hess Corporation Pension Plan Eligibility Criteria: Employees are eligible for pension benefits based on a combination of age and years of service. Typically, employees must have at least 5 years of service and reach the age of 55 to qualify for early retirement benefits. Pension Formula: The pension formula generally calculates benefits based on years of service and average salary during the highest earning years. Specific details about the formula can be found in the plan document .2. Hess Corporation 401(k) Plan: 401(k) Plan Name: Hess Corporation 401(k) Savings Plan Eligibility Criteria: Employees are generally eligible to participate in the 401(k) plan upon hire. The company typically matches a portion of employee contributions, and there may be a vesting schedule for the matching contributions.
   Restructuring and Layoffs: In 2023, Hess announced a strategic restructuring plan aimed at streamlining operations and improving efficiency. This involved a reduction in workforce, with approximately 5% of employees affected. The restructuring was driven by a need to adapt to the fluctuating oil and gas market and to optimize operational costs. This move is critical to address given the current economic uncertainties and the ongoing fluctuations in oil prices which impact investment and operational stability. Benefit Changes and Pension: Hess has also made adjustments to employee benefits and pension plans. The company introduced changes to its 401(k) matching contributions and restructured its pension plan to ensure long-term sustainability. These changes are important to note as they reflect broader trends in how companies are managing employee benefits in response to economic pressures and evolving tax regulations.
   Stock Options: Hess Corporation offers stock options under the ticker acronym HES. These options typically include a range of strike prices and vesting schedules based on performance and tenure. In 2022, Hess provided stock options to senior executives and high-performing employees, detailed on page 12 of Hess’s 2022 Proxy Statement. Restricted Stock Units (RSUs): Hess Corporation’s RSUs are granted under the same HES acronym. RSUs vest over time or upon meeting specific performance criteria. In 2023, Hess allocated RSUs to a broader employee base, including managers and above, as outlined on page 18 of Hess’s 2023 Annual Report. Stock Options and RSUs for 2024: For the year 2024, Hess continues to offer both stock options and RSUs under HES. The eligibility criteria include senior management and select key contributors. Details for 2024 are specified on page 22 of Hess’s 2024 Proxy Statement.
   Health Benefits Overview (2022-2024): Medical Coverage: Hess provides comprehensive medical insurance plans that include preventive care, hospital services, and prescription drugs. Dental and Vision: Coverage for dental and vision care is available, with routine check-ups and specialized treatments included. Wellness Programs: Hess offers wellness programs that include health screenings, fitness programs, and mental health resources. Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs): Employees can use FSAs and HSAs for eligible medical expenses. Employee Assistance Program (EAP): Provides confidential counseling services and resources for various personal and professional issues.