What Lennox International Employees Need to Consider Before Making the Leap to Retire Abroad

Healthcare Provider Update: Lennox International utilizes the services of Aetna as its healthcare provider, offering employees access to a variety of health insurance plans. As we approach 2026, healthcare costs are projected to rise significantly, impacting individuals across the country, including employees at Lennox International. The anticipated expiration of enhanced federal premium subsidies from the Affordable Care Act (ACA) could lead to a staggering increase in premiums, with some states reporting hikes of over 60%. This perfect storm of factors-escalating medical costs exacerbated by a highly profitable insurance sector-may see many consumers facing out-of-pocket premium increases exceeding 75%, creating financial strain for those dependent on ACA marketplace plans. It's imperative for employees to prepare and consider their options carefully in the face of these impending changes. Click here to learn more

For example, Lennox International 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 Lennox International 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 Lennox International 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 Lennox International employees.

Simply for political, economic, and social reasons, many Lennox International 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 Lennox International.

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 Lennox International 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, Lennox International 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. 'Lennox International 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 retirement plans does Lennox International offer to its employees?

   Lennox International offers a 401(k) Savings Plan that allows employees to save for retirement through pre-tax contributions.

   How can employees of Lennox International enroll in the 401(k) Savings Plan?

   Employees of Lennox International can enroll in the 401(k) Savings Plan during their onboarding process or during open enrollment periods.

   Does Lennox International match employee contributions to the 401(k) Savings Plan?

   Yes, Lennox International offers a matching contribution to the 401(k) Savings Plan, which helps employees grow their retirement savings.

   What is the maximum contribution limit for the 401(k) Savings Plan at Lennox International?

   The maximum contribution limit for the 401(k) Savings Plan at Lennox International is subject to IRS limits, which can change annually. Employees should check the latest guidelines for specific amounts.

   Can employees of Lennox International take loans against their 401(k) Savings Plan?

   Yes, Lennox International allows employees to take loans against their 401(k) Savings Plan, subject to certain terms and conditions.

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

   The 401(k) Savings Plan at Lennox International offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

   How often can employees change their contribution amounts to the 401(k) Savings Plan at Lennox International?

   Employees at Lennox International can change their contribution amounts to the 401(k) Savings Plan on a quarterly basis or during designated enrollment periods.

   Is there a vesting schedule for the employer match in the Lennox International 401(k) Savings Plan?

   Yes, there is a vesting schedule for the employer match in the Lennox International 401(k) Savings Plan, which determines when employees fully own the matched contributions.

   What happens to the 401(k) Savings Plan if an employee leaves Lennox International?

   If an employee leaves Lennox International, they have several options for their 401(k) Savings Plan, including rolling it over to another retirement account or cashing it out, subject to taxes and penalties.

   How can employees access their 401(k) Savings Plan account information at Lennox International?

   Employees can access their 401(k) Savings Plan account information through the company's online benefits portal or by contacting the HR department.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Pension Plan: Lennox International offers its employees the Lennox International Inc. 2008 Consolidated Pension Plan, which is available for U.S.-based employees. The pension formula used by Lennox is a Defined Benefit formula, where retirement benefits are determined based on years of service and final average earnings. This plan applies to employees with long-term tenure and is part of Lennox's broader efforts to offer retirement security. Lennox International calculates benefits based on a multiplier applied to the employee's final average salary and length of service. The company has historically adjusted pension funding as needed to account for market conditions. The 2008 Consolidated Pension Plan continues to be relevant through 2023 and 2024. [Source: SEC Filing, Page 45]​ (Lennox). 401(k) Plan: Lennox International offers a 401(k) plan to both salaried and hourly employees, referred to as the Lennox International Inc. 401(k) Plan. Employees are eligible to participate after meeting the required age and service thresholds. The company provides a matching contribution of up to 6%, which applies to all eligible employees. The 401(k) plan includes both traditional and Roth options, allowing employees to make pre-tax or post-tax contributions depending on their financial goals. The plan has continued to operate efficiently throughout 2022, 2023, and 2024, allowing employees to grow their retirement savings with company support. [Source: Lennox Annual Report, Page 72]​ (Lennox).
   In 2023, Lennox International divested its European operations as part of its restructuring efforts to focus on its core North American market. This was driven by rising material costs, inflation, and a shift towards energy-efficient solutions. Lennox also projected a core revenue growth between 0-4% for 2023, with long-term revenue targets between $5.0-$5.5 billion by 2026. CEO Alok Maskara emphasized the importance of cost reduction and leveraging productivity initiatives to offset inflation​ (Lennox). Lennox’s restructuring and financial projections reflect the company’s efforts to remain competitive amid economic challenges and inflationary pressures. It is critical to address Lennox’s restructuring and benefit changes in light of the current economic, tax, and political environment. Rising costs and regulatory shifts in the energy sector are prompting companies like Lennox to focus on financial stability, sustainability, and innovation. The company’s ability to adapt to these challenges by cutting costs and focusing on core markets will significantly impact its long-term success and employee benefits.
   Lennox International offers stock options and Restricted Stock Units (RSUs) to its employees as part of their executive compensation plan. In 2022, 2023, and 2024, Lennox International granted RSUs under time-based vesting schedules. These RSUs do not require employees to purchase shares; instead, shares are delivered upon vesting, which aligns with performance and retention goals. Stock options allow employees to purchase shares at a fixed price after meeting specific conditions. These plans aim to incentivize long-term employment and performance improvements for eligible employees. For instance, RSUs were granted on March 15, 2023, with 2,052 shares vesting, and future vesting schedules are set for March 15, 2024​ (Lennox)​ (Lennox)​ (Lennox). Only executives and key employees, such as directors and covered persons under Section 16 of the Securities Exchange Act, are eligible to receive these RSUs and stock options​
   Lennox International offers a comprehensive suite of health benefits to its employees, emphasizing wellness and flexibility. Employees have access to various health plans, including medical, dental, and vision insurance, as well as flexible spending accounts (FSAs) and health savings accounts (HSAs). Lennox International also prioritizes mental health, offering programs such as employee assistance plans (EAPs) to support psychological well-being. Recent updates to Lennox's benefits structure reflect a growing focus on preventative care and wellness initiatives, which align with current trends toward promoting long-term employee health​ (Built In)​ (Lennox). These changes are particularly important in the current economic and political environment, where healthcare costs continue to rise, and there is increased pressure for companies to provide sustainable health benefits to attract and retain talent. In light of the growing demand for high-quality healthcare, Lennox International has also implemented benefits related to disability coverage, life insurance, and wellness programs, which include incentives for healthy living​ (Lennox). These initiatives are critical as companies face economic challenges and evolving tax regulations that could impact employer-provided health benefits. Addressing healthcare topics in this context is essential, as political decisions regarding healthcare policy can directly influence the stability and cost of corporate health plans. Lennox International's approach to healthcare aims to protect employees against rising healthcare expenses while ensuring compliance with current tax and economic policies​