Lockheed Martin’s 401(k) Retirement Safety Net

There they go again, looking out for their employees! Yep, Lockheed Martin has systems in place to make sure their employees are saving for retirement, even when the employee forgets. How does that happen, you ask? We’re happy to explain.

When a new employee, rehire, or newly eligible employee surpasses their first 30 days on the job, the employee can often be so focused on learning their new role, that they forget to start contributing to their Empower 401(k). Forgetting means, the employee hasn’t selected how much of their pay to save to their 401(k) or an investment. Not to worry though, this is where the safety net comes in.

Lockheed Martin’s safety net will automatically withhold 3% of the weekly eligible compensation. That 3% will automatically be invested into the pre-tax Target Date Fund that is closest to the year in which you turn 65 years old. As the years go by and if contributions haven’t been changed or the employee hasn’t opted out of the plan, Lockheed Martin will continually increase the automatic withholding by 1% each year. Once the withholding reaches 8%, the automatic annual increases will stop.

In addition, Lockheed Martin will automatically make a company contribution equal to 2% of the weekly eligible compensation. The company contribution will increase to 4% of the weekly eligible compensation when the employee’s withheld contribution reaches 8%. That means Lockheed is helping fund their employee’s retirement with company money up to a total of 6%.

So, whether you missed the opportunity, forgot, or just don’t care, Lockheed Martin does. Building your retirement nest egg is something each person has to do for themselves and having a company there to help is rare. Partnering the benefits from Lockheed Martin along with Advisors like us is priceless.

Call or email us to find out how we can help you know what percent you should withhold and where to invest!


Want to get better educated on Lockheed Martin retirement strategies? Then download our free report, Retire with Confidence: Top 4 Things You Can Do to Maximize your Lockheed Retirement.

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