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

Healthcare Provider Update: Healthcare Provider for ServiceNow ServiceNow employees generally utilize various healthcare providers, depending on their selected health plans. The specific healthcare provider can vary by region and the insurance options offered by ServiceNow. While the company facilitates access to different plans through insurance carriers like UnitedHealthcare, Cigna, and others, employees typically select plans that best fit their healthcare needs and financial situations. Anticipated Healthcare Cost Increases for 2026 In 2026, ServiceNow employees are likely to face substantial increases in healthcare costs, reflecting broader trends in the Affordable Care Act (ACA) marketplace. With some states predicting premium hikes of over 60%, these changes could significantly impact out-of-pocket expenses. The potential expiration of enhanced federal subsidies combined with rising medical costs means many employees may experience premium increases of up to 75%, underscoring the importance of prudent financial planning in light of impending healthcare expenses. Click here to learn more

For example, ServiceNow 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 ServiceNow 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 ServiceNow 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 ServiceNow employees.

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

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 ServiceNow 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, ServiceNow 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. 'ServiceNow 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 ServiceNow?

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

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

   ServiceNow offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions up to a certain limit.

   Are there any eligibility requirements for ServiceNow's 401(k) plan?

   Yes, employees must meet certain eligibility criteria, such as length of service and employment status, to participate in ServiceNow's 401(k) plan.

   Can employees at ServiceNow change their contribution percentage to the 401(k) plan?

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

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

   ServiceNow's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

   Does ServiceNow provide financial education resources for employees regarding the 401(k) plan?

   Yes, ServiceNow provides financial education resources and tools to help employees make informed decisions about their 401(k) investments.

   When can employees at ServiceNow start contributing to the 401(k) plan?

   Employees at ServiceNow can typically start contributing to the 401(k) plan after they meet the eligibility requirements, often within their first month of employment.

   What happens to my 401(k) account if I leave ServiceNow?

   If you leave ServiceNow, you have several options for your 401(k) account, including rolling it over to another retirement account, cashing it out, or leaving it in the ServiceNow plan if allowed.

   Is there a vesting schedule for ServiceNow's 401(k) matching contributions?

   Yes, ServiceNow has a vesting schedule for matching contributions, which means employees must work for a certain period before they fully own the matched funds.

   Can employees take loans against their 401(k) plan at ServiceNow?

   Yes, ServiceNow allows employees to take loans against their 401(k) plan, subject to specific terms and conditions outlined in the plan document.