What Northern Trust Employees Need to Consider Before Making the Leap to Retire Abroad

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For example, Northern Trust 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 Northern Trust 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 Northern Trust 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 Northern Trust employees.

Simply for political, economic, and social reasons, many Northern Trust 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 Northern Trust.

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 Northern Trust 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, Northern Trust 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. 'Northern Trust 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 401(k) plan offered by Northern Trust?

   The 401(k) plan at Northern Trust is a retirement savings plan that allows employees to contribute a portion of their salary on a pre-tax basis, which can grow tax-deferred until withdrawal.

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

   Northern Trust offers a matching contribution to the 401(k) plan, which typically matches a percentage of the employee's contributions, up to a certain limit.

   Can employees at Northern Trust choose their investment options within the 401(k) plan?

   Yes, employees at Northern Trust can select from a variety of investment options within the 401(k) plan to tailor their retirement savings according to their risk tolerance and financial goals.

   What is the vesting schedule for Northern Trust's 401(k) matching contributions?

   The vesting schedule for Northern Trust's 401(k) matching contributions typically follows a graded vesting model, where employees earn ownership of the matching contributions over a specified period.

   At what age can employees at Northern Trust start withdrawing from their 401(k) plan?

   Employees at Northern Trust can generally begin withdrawing from their 401(k) plan without penalties at age 59½, although they may also access funds earlier under certain circumstances.

   Does Northern Trust offer a loan option against the 401(k) savings plan?

   Yes, Northern Trust allows employees to take loans against their 401(k) savings plan, subject to specific terms and conditions outlined in the plan documents.

   What should employees at Northern Trust do if they want to change their 401(k) contribution amount?

   Employees at Northern Trust can change their 401(k) contribution amount by accessing the benefits portal or contacting the HR department for assistance.

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

   Yes, Northern Trust's 401(k) plan may have certain fees associated with investment options and plan administration, which are disclosed in the plan documents.

   How often can employees at Northern Trust change their investment allocations in the 401(k) plan?

   Employees at Northern Trust can typically change their investment allocations in the 401(k) plan at any time, subject to the plan's specific rules and guidelines.

   What educational resources does Northern Trust provide for employees regarding the 401(k) plan?

   Northern Trust offers various educational resources, including workshops, online tools, and one-on-one consultations, to help employees understand and maximize their 401(k) savings.