Ten Ways to Maximize Your Lockheed Martin Benefits Package

By  David Sandhu

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Lockheed Martin is a leading global aerospace and defense company that employs thousands of people worldwide. One of the great benefits of working for Lockheed Martin is the comprehensive benefits package that includes health insurance, retirement plans, and other perks.

Here are 10 ways to maximize your Lockheed Martin benefits package.

1. Contribute to Your Health Savings Account (HSA)

One of the best ways to maximize your Lockheed benefits package is to take advantage of the Health Savings Account (HSA). An HSA is a tax-advantaged account that allows you to save money for healthcare expenses. Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free. Lockheed Martin offers a company match for individuals and families who contribute to an HSA.

2. Review Your Beneficiary Designations

It’s important to regularly review your beneficiary designations for your Lockheed 401(k) plans, life insurance policies, and other benefits. Make sure that your beneficiaries are up-to-date and accurately reflect your wishes. If you have a life event, such as a marriage, divorce, birth, or death in the family, it’s especially important to review and update your beneficiary designations.

3. Opt-in to ARAG Legal for Wills, Trusts, and Estate Planning

Lockheed Martin offers employees access to the ARAG Legal Plan, which provides legal services for wills, trusts, and estate planning. This benefit can help you create a comprehensive estate plan that reflects your wishes and protects your assets. Having a well-crafted estate plan can give you peace of mind and help ensure that your assets are distributed according to your wishes.

4. Get the Full Lockheed Company Match in Your 401(k)

One of the easiest ways to maximize your retirement savings is to get the full Lockheed company match. Lockheed Martin offers a generous 401(k) plan with a company match of up to 10% of your salary. To get the full match, you’ll need to contribute at least 8% of your salary to your 401(k). Not taking advantage of the company match is essentially leaving free money on the table.

5. Consider Roth 401(k) Contributions

If you’re looking for a tax-free income stream in retirement, consider contributing to a Roth 401(k) plan. Unlike traditional 401(k) plans, Roth 401(k) contributions are made with after-tax dollars, so your withdrawals in retirement are tax-free. Lockheed Martin offers a Roth 401(k) option for employees who want to take advantage of this benefit.

6. Invest According to Your Phase of Retirement

Investing according to your phase of retirement can help you make the most of your retirement savings. In the accumulation phase, you’ll want to focus on growth and take on more risk. As you move into the preservation phase, you’ll want to shift your focus to income-producing investments and reduce your risk. In the distribution phase, you’ll want to focus on generating income and preserving your assets. Working with a financial advisor can help you develop a plan that reflects your retirement goals and helps you make the most of your retirement savings.

7. Join a Lockheed Resource Group 

Joining a Lockheed LDP (leadership development program), business resource group, or the Lockheed Martin Leadership Association can help you network and advance your career. These groups offer opportunities to connect with colleagues, develop leadership skills, and gain exposure to different areas of the company. Some of the resource groups offered by Lockheed Martin include the Women’s Impact Network (WIN), the Black Excellence Council (BEC), Hispanic Organization for Leadership & Awareness (HOLA), and Professional Asian American Network (PAAN).

8. Maximize Your Retirement Income

When it comes to retirement, maximizing your retirement income is key to enjoying a comfortable and stress-free retirement. For Lockheed employees that have a pension, the three legs of your retirement income will likely include your pension plan, your 401(k) plan, and Social Security. To maximize your retirement income, consider the following:

  • Understand your pension payout options: If you are qualified, Lockheed Martin offers a defined benefit pension plan that provides a guaranteed monthly income during retirement. Make sure you understand the different payout options available to you and choose the one that best fits your needs.
  • Contribute to your 401(k): By contributing to your 401(k) plan, you can build a nest egg for retirement. Take advantage of the company match and consider making additional contributions if you can afford it, especially if you are over age 50.
  • Plan for Social Security: Social Security is a significant source of income for many retirees. Consider the best time to start taking Social Security benefits based on your individual circumstances, such as your life expectancy, health, and financial needs.

9. Understand Your Greatest Risks

Regardless of which phase of retirement you’re in, there are always risks to consider. Understanding these risks and taking steps to mitigate them can help you achieve a more secure retirement. Here are a few things to keep in mind:

  • Healthcare costs: Healthcare costs can be a significant expense during retirement, especially as you get older. Make sure you have a plan in place to cover these expenses, such as by contributing to a Health Savings Account (HSA) or having a plan for long-term care.
  • Social Security: Social Security benefits are subject to change and may be affected by government policies. Stay informed about any changes to Social Security and consider how these changes could affect your retirement income.
  • Inflation: Inflation can erode the value of your retirement savings over time. Consider investing in assets that can keep pace with inflation.
  • Taxation: Pre-tax withdrawals from retirement accounts are generally subject to income taxes. Consider the tax implications of your retirement income and plan accordingly.
  • Required minimum distributions (RMDs): Once you reach age 73, you must start taking required minimum distributions from your retirement accounts. Make sure you understand the RMD rules and plan for these distributions accordingly.
  • Withdrawal plan: If you’re within 10 years of retirement, develop a plan for withdrawing assets. Keep in mind the effects of taxation, Social Security, RMDs, and government regulation.

10. Ask for Help

Finally, it’s important to ask for help when you need it. Retirement planning can be complex, and there are many factors to consider. Don’t be afraid to seek help from your HR representative at Lockheed Martin or advice from a financial advisor that specializes in Lockheed benefits. They can help you navigate your benefits package and make informed decisions about your retirement.

Maximizing your Lockheed benefits package can help you achieve financial stability and security both now and in retirement. By reviewing your benefits annually and getting help when you need it, you will set yourself up for success as your build and preserve your wealth while working at Lockheed Martin.

Disclaimer: This article is not affiliated, endorsed, or sponsored by Lockheed Martin in any way.

This article reflects the insights and opinions of its author and is not a recommendation or endorsement of their views or services.

About the Author

David Sandhu

David formerly worked for SpaceX, Raytheon and Lockheed Martin as an engineer before he transitioned to the financial services industry. After his father passed away, David helped his mom through the financial planning process, and that gave him the spark to pursue a career in financial planning. David is passionate about serving others and lives by Zig Ziglar’s famous saying, “You can have everything in life you want, if you will just help enough other people get what they want.”

He knows first-hand that true happiness is experienced when helping others and he is always looking for ways to encourage others to reach their goals. David is a Chartered Retirement Planning Counselor and Financial Advisor with Wise Wealth, LLC – an SEC Registered Investment Advisory Firm. David has a passion for education and understands that the key to successful financial planning begins with knowledge.

To make Wealthtender free for readers, we earn money from advertisers, including financial professionals and firms that pay to be featured. This creates a conflict of interest when we favor their promotion over others. Learn more. Wealthtender is not a client of these financial services providers.
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