Are you a Lockheed Martin employee that gets to enjoy the fruits of your labor for the rest of your life through your Lockheed Martin pension plan and have wondered how do they actually calculate your Final Average Pay for your pension benefit? If so, then keep reading to find out.  It’s not as complicated as it appears.

Lockheed Martin uses your Final Average Pay as a major part of the calculation to define the dollar amount of your pension benefit.  By doing so, they are able to help you take advantage of your highest earning years prior to the freeze on December 31, 2015.  (Any earnings after December 31, 2015, no longer count towards your Final Average Pay.)

Follow these steps to calculate your Final Average Pay:

  1. List your earnings from 2005 to 2015.
  2. Highlight the highest 3 years
  3. Add those 3 years together
  4. Divide the total of the 3 years by 3
  5. Tadaa! – This is your Final Average Pay
Lockheed Martin Final Average Pay

There you have it.  A simple math problem to figure out one of the key elements in calculating your pension benefits! Each person’s pension amount will vary. To get more information about your specific calculation, book an appointment with a Lockheed Retirement Specialist today.

For more tips like these, click here to sign up for our weekly email blog newsletter. If you would like to get better educated on Lockheed retirement strategies, click here to download our Free Report titled Retire with Confidence: The Top 4 Things You Can Do Now to Maximize your Lockheed Retirement. And, if you want to have face time with a Lockheed Retirement Specialist², you can click here to schedule an appointmentclick here to sign up for our Lockheed Retirement Workshop or click here to just give us a call (817) 210-3444.

Be sure and check back next week for more incredibly valuable information. Cheers!

Disclosures*

Financial Planning and Investment Advisory offered by SWMG, LLC a Registered Investment Advisor.

Lockheed Martin Retirement Specialist is not an official title or professional designation nor is it conferred by Lockheed Martin on any individual or company.

Our Complementary consultation and free report are for informational purposes only and provided free without any obligation to utilize or retain our investment advisory services.

SMWG, LLC is not affiliated with or endorsed by Lockheed Martin Corporation. Our expertise comes from working with LMT employees for several years and helping them to retire with confidence.

Investing involves the risk of loss, including loss of principal. Past performance does not guarantee future results. Investment products are not FDIC insured, have no bank guarantee, and may gain or lose value. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable for a client’s investment portfolio.

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