Northrop Grumman provides retirement benefits to help employees save, invest and plan for the future. No matter what your financial goals are, Northrop Grumman's retirement programs can help you get there.
The Northrop Grumman Savings Plan allows eligible employees to contribute and invest for their financial future, so they can achieve their retirement savings goals.
Employees can contribute from 1% to 75%—35% limit for highly compensated employees—of their eligible compensation in 1% increments on a tax-advantaged basis up to IRS limits.
In addition to the contributions they make to their Northrop Grumman Savings Plan, employees are eligible to receive a matching contribution from Northrop Grumman. Matching contributions occur each pay period the employee contributes to the plan.
You can contribute from 1% to 75% of your eligible compensation in increments of 1%. Highly compensated employees can contribute a maximum of 35%. You can make the following contributions:
New and rehired eligible employees are automatically enrolled in the Northrop Grumman Savings Plan. Approximately 45 days after your hire date, 4% of your eligible pay will automatically be deducted on a pre-tax basis. Your contribution rate will be increased automatically by 1% each year.
Visit Fidelity NetBenefits to review your contributions, balance and investments.
Company Match
Northrop Grumman may make a matching contribution based on the sub-plan in which you participate. To determine your sub-plan, log on to NetBenefits.
Annual Performance-Based Benefit
The annual Performance-Based Benefit is connected to company performance and has two primary objectives: To reward employees for the success of Northrop Grumman and to support their ability to accumulate funds for retirement. The benefit was paid to eligible employees in the first quarter in 2021.
Note: 2020 was the final year for the Performance-Based Benefit. Review the frequently asked questions for additional information.
Other Company Contributions
Depending on your hire date and employment history, you may receive an annual company Non-Elective Contribution (NEC) or Retirement Account Contribution (RAC). To determine your NEC or RAC eligibility, please log on to NetBenefits.
2021 Savings Contribution Limits
Part of planning for retirement includes contributing to the Northrop Grumman Savings Plan. Below are the 2021 savings plan contribution limits as defined by the IRS.
|
2021 IRS Savings Plan Contribution Limits |
If you are under age 50 |
If you are age 50 or older* |
|---|---|---|
|
Your Pre-tax and/or Roth 401(k) Contribution Limit |
Maximum of $19,500 |
Additional $6,500 in catch-up contributions, for a maximum of up to $26,000 |
|
Limit on total contributions (your pre-tax, Roth 401(k) and after-tax contributions plus Northrop Grumman's contributions) |
100% of annual pay or $58,000, whichever is less |
100% of annual pay or $64,500 ($58,000 + $6,500 in catch-up contributions), whichever is less |
*You must be at least 50 years old by the end of 2021 to be eligible to make catch-up contributions in 2021.
Note: In 2021, the total annual amount of eligible compensation on which your savings plan contributions may be based is the first $290,000 of earnings. Pay above this limit cannot be deferred into the plan.
The Northrop Grumman Savings Plan offers two different investment approaches to help you reach your savings goals:
Visit NetBenefits now to review your contributions, balance and investments.
Note: Trading restrictions apply to the core funds. See the SPD for details.
You are immediately 100% vested in your contributions. You are generally 100% vested in any company contributions after three years of service.
Loans:
Employees may generally borrow up to 50% of their vested 401(k) Plan account, up to legal limits. The portion of the account that is being borrowed won’t make any investment gains while out of the plan.
Withdrawals:
If employees experience financial hardships, they may request a withdrawal of a portion of their account while still working at Northrop Grumman. Be sure to understand both the tax consequences and implications for long-term savings of taking a withdrawal.
To learn more, visit NetBenefits.
How Much Money Will You Need to Retire?
|
If you want this amount of income each year of your retirement... |
Your retirement nest egg must be...* |
||
|---|---|---|---|
|
$20,000 |
$233,800 |
$279,400 |
$304,400 |
|
$40,000 |
$467,600 |
$558,700 |
$608,800 |
|
$60,000 |
$701,400 |
$838,200 |
$913,200 |
|
$80,000 |
$935,200 |
$1,117,500 |
$1,217,700 |
|
|
...to last 20 years |
...to last 30 years |
...to last 40 years |
*Figures reflect the assumption that your nest egg grows 6% a year. Beyond the number of years shown, your account balance is $0. The ending values do not reflect taxes, fees or inflation. If they did, amounts would be lower. Taxes will be due upon withdrawal. Distributions before age 59 1/2 may also be subject to a 10% penalty. The assumed rate of return used in this example is not guaranteed.
A Comfortable Retirement Is Within Your Reach.
Saving enough for retirement takes your entire career. With a long-term goal like that, it can be a challenge to stay on track, especially with so many competing priorities. However, small steps over time can really add up. Fidelity recommends you save at least 15% of your income toward retirement. Below are additional tips for you and your family
Build a Budget
The first step to getting your savings on track is to know where your money is going. Make a list of all of your monthly expenses and, if you haven’t already, add "Savings Plan." Write down the amount (or the additional amount) you do ― or can ― invest each month. Putting the amount in writing can help you achieve two important results: First, you’ll start thinking of "saving for retirement" as an important financial obligation. Second, you’ll feel more committed to following through on your savings budget.
Now that you have your list, deduct the total from your monthly income. If you have money left over after taxes, are you already contributing at least 15% toward your retirement? If not, here’s your chance to chip in a little more! If you are contributing 15%, perhaps you want to contribute a bit more or even consider your other savings priorities like building an emergency savings. However, if there is nothing left over, it might be time to review your expenses and see if there is anything you can do without.
Consider Automatic Contributions
One of the best ways to save for any goal – especially retirement – is to contribute straight from your paycheck before you have a chance to spend it. With automatic contributions, you can do just that. If you are already contributing, are you able to maximize your contributions to get the most out of the company match?
Remember, Northrop Grumman matches based on your combined pre-tax, Roth 401(k) and after-tax contributions made each pay period.
Push Your Perspective (The Power of Compound Interest)
Saving for retirement is a long-term goal. For some of us, it can be hard prioritizing retirement over something immediate today. If you feel like saving is a sacrifice, you are not alone. How would it feel to push your perspective and make saving a treat?
Fidelity recommends you save at least 15% per year for retirement. Depending on your circumstances, that might be achievable without a blink. For others, it can mean weighing some “wants” against that long-term goal to get to 15%. Now, we’re not talking about things you need ― like food, housing and health care ― or even a little treat like Friday night pizza. We’re talking more about the “shiny things” that have you reaching for your wallet before thinking (and we’ve all been there.)
Pushing your perspective is easy, but it takes practice. The next time you see something exciting pop up in an ad, ask, “What will this $100 look like in 20 years?” If you invest that same $100 in your retirement savings with an average annual return of 6%, it will more than triple in value. Now, what if you did this every month, and instead of making a purchase you invested in your future? If you invest an extra $100 a month in your retirement savings, at an average annual rate of 6%, it will look like $16,470 after 10 years and $46,435 after 20 years. Now that’s a treat.
Get Help If You Need It
A financial planner or advisor can help you establish a clear retirement savings goal, help you decide how much to contribute to the Savings Plan and other investments (like an individual retirement account or IRA), and help you choose an investment mix that is right for your personal situation. If you are approaching retirement, a professional can also help you decide when and how to start taking distributions from the plan.
Fixed-fee financial planners may charge $500 or more for their services, but many investors think having an expert opinion is worth it. Encouragement and advice from a financial planner may be just the motivation you need to get your savings in shape.
Have you ever asked yourself "Am I contributing enough to the savings plan?" "Have I selected the right investments?" "Will I have enough to retire?"
The Fidelity® Personalized Planning & Advice service is available to Northrop Grumman Savings Plan participants. This service gives you access to a team of professionals who can help you create and maintain an investment strategy. You can get the support you need to put your plan into action and track your progress against your goals. Please note there is an advisory fee for this optional service.
For more information, visit netbenefits.com/plan.
Fidelity® Personalized Planning & Advice at Work is a service of Fidelity Personal and Workplace Advisors LLC and Strategic Advisers LLC. Both are registered investment advisers, are Fidelity Investments companies and may be referred to as "Fidelity," "we," or "our" within. For more information, refer to the Terms and Conditions of the Program. When used herein, Fidelity Personalized Planning & Advice refers exclusively to Fidelity Personalized Planning & Advice at Work. This service provides advisory services for a fee.
Links to external sites listed are provided for informational purposes only. Northrop Grumman does not specifically endorse any of the content, nor any advertisements, which may be found on these websites.
Fidelity NetBenefits®
The Fidelity NetBenefits website offers information about your Savings Plan, including investment options and portfolio performance. The site is available virtually 24 hours a day, 7 days a week and allows you to easily change your Savings Plan contribution rate or investment funds, and also designate or update your beneficiary(ies).
The Planning & Guidance Center on Fidelity NetBenefits® helps you analyze where you are towards saving for a goal — and set a clear plan of action to get you where you want to be. Choose whether you want to plan for retirement, college or other financial goal, or for an overall investment strategy. You can then enter your information to determine your situation and objectives, and see the impact on your goals by changing key assumptions and modeling different scenarios.
This is in addition to the other planning tools and resources available on NetBenefits. From budgeting and debt management, to buying a home and saving for college, you can find information to break it all down—and next steps to help you get, and stay, on track. Go to the Library section on NetBenefits to find tips, tools and resources on a multitude of financial topics.
AARP Retirement Calculator
Some of the new features in this retirement calculator include the ability to develop a retirement plan for a dual-income home, the ability to calculate and include individual Social Security benefit estimates as a part of retirement income, an explanation of where an individual currently stands in their retirement planning, and the ability to experiment with various retirement scenarios to create a plan for every situation.
America Saves
A nationwide coalition of non-profit, corporate and government groups encouraging saving and providing resources and strategies for paying down debt, saving for retirement and building wealth.
Choose to Save®
Developed by the Employee Benefit Research Institute (EBRI) through its American Savings Education Council (ASEC) program, Choose to Save® is a national public education and outreach program dedicated to raising awareness about the need to plan and save for long-term personal financial security. The site offers a wide variety of savings calculators for creating a budget, saving for a home or college, and retirement planning.
MyMoney.gov
MyMoney.gov contains tools and resources for personal financial planning, and is offered by the U.S. Financial Literacy and Education Commission.
Savings Fitness: A Guide to your Money and Your Financial Future
The U.S. Department of Labor and Certified Financial Planner Board of Standards Inc. (CFP Board) partnered to provide information to help you succeed in setting financial and retirement goals. This booklet starts you on the way to setting savings goals, avoiding savings pitfalls and putting your retirement high on your list of personal priorities.
