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

Healthcare Provider Update: Healthcare Provider for Xylem Xylem Inc. primarily relies on Accenture for its health and wellness programs, a strategic partnership aimed at enhancing employee benefits management. Healthcare Cost Increases in 2026 As 2026 approaches, Xylem employees may face significant increases in healthcare costs amid anticipated sharp hikes in ACA premiums. Reports indicate that some states could experience premium increases exceeding 60%, primarily driven by the expiration of enhanced federal subsidies and rising medical costs. Consequently, many employees could see their out-of-pocket expenses rise substantially, making it vital to evaluate health plans carefully and consider proactive financial strategies for managing these heightened costs. Adjustments in employer-sponsored plans may further shift more healthcare expenses onto employees, amplifying the need for strategic preparation. Click here to learn more

For example, Xylem 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 Xylem 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 Xylem 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 Xylem employees.

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

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 Xylem 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, Xylem 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. 'Xylem 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 Xylem's 401(k) plan?

   Xylem's 401(k) plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out, helping them prepare for retirement.

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

   Xylem offers a matching contribution to employee 401(k) plans, typically matching a percentage of the employee's contributions up to a certain limit.

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

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

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

   Xylem's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

   Can employees at Xylem take loans against their 401(k) savings?

   Yes, employees at Xylem may have the option to take loans against their 401(k) savings, subject to the plan's specific terms and conditions.

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

   If you leave Xylem, you have several options for your 401(k), including rolling it over to a new employer's plan, transferring it to an IRA, or cashing it out (though cashing out may incur taxes and penalties).

   How can I access my 401(k) account information at Xylem?

   Employees can access their 401(k) account information through the designated online portal provided by Xylem's 401(k) plan administrator.

   Does Xylem offer financial education resources for 401(k) participants?

   Yes, Xylem provides financial education resources, including workshops and online tools, to help employees make informed decisions about their 401(k) savings.

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

   The vesting schedule for Xylem's matching contributions typically requires employees to work for a certain number of years before they fully own the matched funds.

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

   Yes, there may be administrative fees and investment-related fees associated with Xylem's 401(k) plan, which are disclosed in the plan documents.