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Healthcare Provider Update: Healthcare Provider for Lockheed Martin Lockheed Martin primarily partners with UnitedHealthcare to provide healthcare benefits to its employees. This collaboration allows Lockheed Martin to offer comprehensive health plans tailored to meet the diverse needs of its workforce across various locations. Healthcare Cost Increases in 2026 As healthcare costs are projected to rise significantly in 2026, Lockheed Martin employees may face increased out-of-pocket expenses. Following trends revealed in recent reports, health insurance premiums for many states are slated to soar, with some seeing hikes exceeding 60%. Contributing factors include rising medical costs due to inflation and the anticipated expiration of federal premium subsidies, which could push the average increase for consumers to over 75%. The combination of these elements suggests that both employees and employers may need to strategize for heightened healthcare expenses in the coming year. Click here to learn more
'With longer life expectancies and 25–35 year retirement horizons becoming more common, Lockheed Martin employees should regularly revisit their income, Social Security timing, and withdrawal strategies to build flexibility into their plans and account for inflation, health care costs, and market cycles,' – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement.
'As retirement timelines stretch to 25–35 years, Lockheed Martin employees should view longevity, inflation, and sequence-of-returns risk not as abstract concepts but as planning variables that require flexibility, disciplined income coordination, and periodic review,' – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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How increasing longevity is reshaping retirement timelines for Lockheed Martin employees.
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Structural shifts in pensions, inflation, health care, and Social Security.
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Practical strategies to adapt retirement income planning for 25–35 year retirements.
by Neva Bradley, CFP®, Wealth Enhancement
For many years, retirement planning often assumed a post-career life of a few decades, with retirement occurring around age 65. For long-tenured Lockheed Martin employees, that traditional model may no longer fully reflect today’s realities.
Longevity data underscores the importance of flexibility in planning.
In 2024, average life expectancy in the United States at birth was 79 years, with women living 81.4 years and men 76.5 years, according to the Centers for Disease Control and Prevention (CDC). 1
These figures reflect national birth averages.
However, planning solely around averages can be misleading. By definition, roughly half of individuals will live beyond the midpoint. Depending on retirement age and personal longevity, retirement for many Lockheed Martin employees may extend 25 to 35 years.
That extended time horizon may increase exposure to key retirement risks.
Revisiting Retirement Assumptions
Today’s retirement landscape looks different than it did for previous generations of Lockheed Martin employees.
- Defined benefit pensions are considerably less common in the private sector. As of September 2025, only about 14% of private sector workers have access to a defined benefit plan, according to the Bureau of Labor Statistics. 2
- Over extended periods, medical costs have generally risen faster than overall consumer prices. 3 While Medicare provides meaningful coverage, it does not include most long-term care services or many dental services.
- In June 2022, inflation reached 9.1% year over year—the largest 12-month increase since 1981, according to the Bureau of Labor Statistics. 4 While headline inflation has since waned, even modest shifts in inflation, health care expenses, and market performance can materially affect outcomes over multi-decade retirements.
For Lockheed Martin employees planning a retirement that could span three decades, these factors deserve careful evaluation.
Understanding Longevity Risk
Longevity risk refers to the possibility of outliving one’s financial resources.
The longer retirement lasts, the greater the exposure to market cycles, inflation, and health care costs. Sequence-of-returns risk— the impact of market declines early in retirement while withdrawals are occurring—can significantly influence long-term portfolio durability.
Retirement strategies for Lockheed Martin employees should account for these variables, particularly given potentially long retirement timelines.
How Retirement Planning Can Adapt
1. Plan for a Range of Ages
Rather than planning to a single life expectancy figure, stress-testing retirement scenarios to age 90 or 95 can add resilience. For Lockheed Martin households, building in flexibility helps account for longer lifespans.
2. Reevaluate Withdrawal Strategies
While the traditional 4% guideline was based on a 30-year retirement horizon, it failed to take inflationary pressures and sequence-of-return risk into account. Withdrawal strategies that consider spending flexibility during varying market conditions may support long-term sustainability.
3. Consider Social Security Timing
Delaying Social Security beyond full retirement age increases benefits through delayed retirement credits up to age 70. 5 For some Lockheed Martin employees concerned about longevity risk, higher lifetime income from Social Security may strengthen long-term cash flow stability
4. Maintain Balanced Allocation
While risk management remains essential, maintaining exposure to growth-oriented assets may help retirement savings keep pace with inflation across extended retirement periods.
5. Layer Multiple Income Sources
Retirement income for Lockheed Martin employees may include:
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- Social Security
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- Pension income
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- Investment withdrawals
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- Part-time work
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- Annuity income
Diversifying income streams can help reduce reliance on any single source.
If You’re Already Retired
Adjustments remain possible. Reviewing spending habits, withdrawal strategies, investment positioning, and health care planning can help align financial resources with the expected duration of retirement.
Decisions such as reducing discretionary expenses or downsizing can be practical planning strategies.
If You’re Still Employed
Consistency is key. Ongoing savings, appropriate investment exposure, and planning for income flexibility can support long-term durability. For some Lockheed Martin employees, phased retirement or part-time work may ease the transition and extend earning years.
The Bottom Line for Lockheed Martin Employees
Life expectancy remains higher than historical norms, and many retirees face retirement horizons of 25 to 35 years. Over longer retirements, inflation, health care costs, market volatility, and longevity risk carry greater weight.
Modern retirement planning emphasizes flexibility—layering income sources, adjusting withdrawals, maintaining diversified growth exposure, and preparing for a range of outcomes.
The Retirement Group works with Lockheed Martin employees to stress-test retirement strategies, evaluate longevity risk, and assess income alternatives. To discuss your retirement planning needs, call The Retirement Group at (800) 900-5867.
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Sources:
1. Centers for Disease Control and Prevention, National Center for Health Statistics. ' Mortality in the United States, 2024 ,' by J. Xu, S. Murphy, K. Kochanex, E. Arias. NCHS Brief No. 548, January 2026.
2. U.S. Bureau of Labor Statistics. ' Employee Benefits in the United States .' March 2025.
3. Rakshit, Shameek, et al. “How Does Medical Inflation Compare to Inflation in the Rest of the Economy?” Peterson-KFF Health System Tracker , Kaiser Family Foundation, 2 Aug. 2024, www.healthsystemtracker.org/brief/how-does-medical-inflation-compare-to-inflation-in-the-rest-of-the-economy/ .
4. U.S. Bureau of Labor Statistics. Consumer Price Index—June 2022 . U.S. Department of Labor, 13 July 2022, www.dol.gov/newsroom/economicdata/cpi_07132022.pdf .
5. Social Security Administration. ' Delayed Retirement Credits .'
How does Lockheed Martin determine the monthly pension benefit for employees nearing retirement, and what factors should employees consider when planning their retirement based on this calculation? Specifically, how do the concepts of "Final Average Pay" and "Credited Years of Service" interact in the pension calculation under Lockheed Martin’s retirement plan?
Lockheed Martin Pension Calculation: Lockheed Martin calculates monthly pension benefits using the "Final Average Pay" (FAP) and "Credited Years of Service" (CYS). The FAP is determined by averaging the three highest annual compensations prior to 2016, while CYS counts the years from employment start to December 31, 2019, when the pension was frozen. The benefit per year of service is calculated based on whether the FAP is less than or exceeds the Social Security Covered Compensation, with specific formulas applied for each scenario. These calculations directly affect the monthly pension benefit, which may also be reduced if retirement commences before a certain age due to early retirement penalties.
Given the recent changes in Lockheed Martin's pension policy, what implications could this have for employees who are planning to retire in the near future? How should these employees navigate their expectations regarding retirement income given that the pension has been frozen since 2020?
Implications of Pension Freeze: Since Lockheed Martin froze its pension plan in 2020, no future earnings or years of service will increase pension benefits. This freeze shifts the emphasis towards maximizing contributions to 401(k) plans, where Lockheed Martin increased its maximum contribution to 10% for non-represented employees. Employees planning for imminent retirement should recalibrate their financial planning to account for this change, prioritizing 401(k) growth and other retirement savings vehicles to compensate for the pension freeze.
What options does Lockheed Martin provide for employees regarding healthcare insurance as they approach retirement age? How do these options compare in terms of coverage and cost, particularly for those who will transition to Medicare upon reaching age 65?
Healthcare Options Near Retirement: As Lockheed Martin employees approach retirement, they can choose from several health insurance options. Before Medicare eligibility, they may use COBRA, a Lockheed Martin retiree plan, or the ACA's private marketplace. Post-65, they transition to Medicare, with the possibility of additional coverage through Medicare Advantage or Medigap plans. Lockheed Martin supports this transition with a Health Reimbursement Arrangement, providing an annual credit to help cover medical expenses.
Understanding the complex nature of Lockheed Martin's pension and retirement benefits, what resources are available to employees to help them navigate their choices regarding pension claiming options? In what ways can the insights from these resources aid employees in making informed decisions about their financial future?
Resources for Navigating Retirement Benefits: Lockheed Martin employees have access to resources like the LM Employee Service Center intranet, which includes robust tools such as a pension estimator. This tool allows for modeling different retirement scenarios and understanding the impacts of various pension claiming options. Additional support is provided through HR consultations and detailed plan descriptions to ensure employees make informed decisions about their retirement strategies.
For employees with varying years of service at Lockheed Martin, how can their employment history impact their pension benefits? What strategies should individuals explore to maximize their benefits given the different legacy systems that might influence their retirement payout?
Impact of Employment History on Pension Benefits: The length and nature of an employee’s service at Lockheed Martin significantly influence pension calculations. Historical changes in pension policies, particularly the transition points of the pension freeze, play critical roles in determining the final pension benefits. Employees must consider their entire career timeline, including any represented or non-represented periods, to understand and maximize their eligible pension benefits fully.
How does the Lockheed Martin retirement plan ensure that benefits are preserved for spouses or dependents after an employee's passing? How do different claiming options affect the long-term financial security of the employee's family post-retirement?
Benefit Preservation for Dependents: Lockheed Martin's pension plan includes options that consider the welfare of spouses or dependents after an employee's passing. Options like "Joint and Survivor" ensure ongoing benefits for surviving spouses, while choices like "Life with X-Year guarantee" provide continued payments for a defined period after the employee’s death. Understanding these options helps secure long-term financial stability for beneficiaries.
What steps can Lockheed Martin employees take to prepare financially for retirement, especially if they have outstanding loans or financial obligations? How crucial is it for employees to understand the conditions under which these loans must be settled before retirement?
Financial Preparation for Retirement: Employees approaching retirement should focus on clearing any outstanding loans and maximizing their contributions to tax-advantaged accounts like 401(k)s and Health Savings Accounts (HSAs). These steps are crucial for ensuring a smooth financial transition to retirement, minimizing potential tax impacts, and maximizing available retirement income streams.
With the evolution of Lockheed Martin's retirement initiatives, particularly the shift toward higher 401(k) contributions, how should employees balance contributions to their 401(k) with their overall retirement savings strategy? What factors should they consider in optimizing their investment choices post-retirement?
Balancing 401(k) Contributions: With the pension freeze, Lockheed Martin employees should increasingly rely on 401(k) plans, where the company has increased its contribution cap. Employees must balance these contributions with other savings strategies and consider their investment choices carefully to ensure a robust retirement fund that can support their post-retirement life.
How does Lockheed Martin's approach to retirement planning include the management of health savings accounts (HSAs) for retirees? What are the tax advantages of HSAs, and how can employees effectively utilize this resource when planning for healthcare expenses in retirement?
Management of HSAs for Retirees: Lockheed Martin encourages maximizing contributions to Health Savings Accounts (HSAs), which offer significant tax advantages. These accounts not only provide funds for current medical expenses but can also be used tax-free for healthcare costs in retirement, making them a critical component of retirement health expense planning.
What is the best way for employees to contact Lockheed Martin regarding specifics or questions about their retirement benefits? What channels of communication are available, and how can they access the most current and relevant information regarding their retirement planning? These questions aim to encourage thoughtful consideration and discussion about retirement planning within Lockheed Martin, addressing various aspects of the company's benefits while promoting engagement with internal resources.
Contacting Lockheed Martin for Retirement Benefit Queries: Employees should direct specific inquiries about their retirement benefits to Lockheed Martin's HR department or consult the benefits Summary Plan Descriptions available through company resources. These channels ensure employees receive accurate and comprehensive information tailored to their individual circumstances.
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