Whether you’re just getting started or nearing retirement, it’s important to save, invest and plan for your future retirement. Your retirement from work will shift your income from an employer-provided paycheck to your own retirement paycheck.
Understanding your estimated income from your savings and pension plans, Social Security, other personal income and retiree medical expenses helps you envision your potential total retirement income. Review the Overview, Planning and At Retirement sections for each of the areas below to help you learn more.
The Northrop Grumman Savings Plan (NGSP) is an important resource for your retirement. Explore how your NGSP fits into your total retirement income picture. The information on the following pages can help with:
Education and resources to help you kickstart your retirement planning.
It all starts with building a visual model of the income you will receive at retirement. A key decision you need to make is when to access the funds in your account.
Financial education, online tools and advice can help you make that decision as you plan for and assess your retirement readiness. The following sections can help you complete the picture.
Detailed information about your Savings Plan benefits is available in the myRetirement section of Total Rewards Gateway and on NetBenefits. Click here to learn more.
NetBenefits will be your main source for individual Savings Plan information. Once online, you can find information on the following tabs:
You can also call the Northrop Grumman Benefits Center (NGBC) for more information.
Take advantage of the free financial webinars Fidelity offers each month. Topics include Saving, Investing, Turning Your Savings into Retirement Income, Social Security and more. Some workshops are customized for Northrop Grumman employees/plans and others are more general. Log on to NetBenefits to see upcoming events.
Complimentary financial one-on-one consultations are also available and offer a phone-based financial well-being review with a licensed Fidelity representative. Register here.
The Planning & Guidance Center on NetBenefits is a great resource for retirement planning. The section provides information and powerful tools that allow you to model your total retirement income. In the Help & Methodology section of the Planning & Guidance Center, access the series of short videos showing how to:
The primary objective of the retirement modeling tool is to provide you with education about your current savings and estimated future contributions, and the potential impact they may have on your estimated income in retirement. The tool allows you to explore hypothetical scenarios to potentially improve your retirement planning strategy.
It also offers a hypothetical illustration of the amount of monthly income you could potentially have in retirement. The overall score reflects your expected ability to meet expenses. It’s important that you understand the Retirement Score and perform the available interest sensitivity. Review the Results Chart, which shows the potential gaps and offers valuable suggestions. Analyze the potential impact of debt consolidation (know what we own and what we owe).
Here are some retirement planning tools available on NetBenefits that you may find helpful.
Complimentary financial one-on-one consultations are available and offer a phone-based financial well-being review with a licensed Fidelity representative. Register here.
Retirement planning sessions are also available by visiting a local Fidelity Investment Center.
The Fidelity Personalized Planning & Advice service also gives you access to a team of professionals who can help you create and maintain a plan. Get the support you need to put your plan into action and track your progress against your goals. Please note that there is an advisory fee for this optional service.
When you're ready to retire, we're here to help at every step.
When deciding what to do with your Northrop Grumman Savings Plan account after you retire, consider your options carefully and decide which approach works for you.
In most situations, you don’t need to move money out of the Northrop Grumman Savings Plan just because you’re retiring. You will still have access to the same investment choices you’ve had all along. You just won’t be adding any additional contributions.
When you reach age 72, you will be required to start taking minimum distributions from your account.
You can request a partial or full distribution of your account at any time by calling the NGBC.
If your account balance is less than $1,000, your balance will be cashed out 60 days after you leave the company.
Rolling over your money from the Northrop Grumman Savings Plan to an eligible retirement plan, such as another qualified plan or an IRA, is another option. This will allow you to defer federal and state income taxes and avoid any applicable penalties.
Before rolling over your money, you should compare the underlying fees and expenses of the investment options in the Savings Plan to those in the receiving account.
The Savings Plan also allows you to roll over your balance to purchase an annuity.
Call the NGBC if you’d like to roll over some or all of your Savings Plan balance, or to ask about the annuity option.
A withdrawal gives you access to the money in your account, but is subject to federal and state income taxes, and if you’re under age 59½, potentially an early-withdrawal penalty, unless you qualify for an exception to this rule.
Make sure you understand the tax impact of taking your money from the Northrop Grumman Savings Plan. Read the “Taxes and Your Savings Plan Benefits” section of the Summary Plan Description (SPD) available on NetBenefits. You should also consult your tax or financial advisor.
If your account balance is $1,000 or less, it will be automatically distributed to you as a lump sum payment 60 days after you separate from the company unless you choose to request a full payment (rolled over or as cash) prior to that date.
If you have an outstanding loan from the Savings Plan when you leave Northrop Grumman, you may choose to make monthly loan repayments via direct debit from your checking or savings account.
In order to avoid taxation on your outstanding loan balance, you must make timely loan repayments and leave some or all of your balance in the Northrop Grumman Savings Plan. You will receive instructions on how to establish loan repayments via direct debit from the NGBC.
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research related topics through interactive tools, articles, videos and/or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go to learn, plan and collect your retirement benefits.
See what you’re doing well and ways you can improve your financial well-being.
You may not have a pension from Northrop Grumman, but you or your spouse may have one from another employer. A pension can be an important source of retirement income so understanding how and when to receive your pension benefit can help prepare you as you shift from an employer-provided paycheck to your own “retirement” paycheck. The information on the following pages can help with:
Call the Northrop Grumman Benefits Center at 800-894-4194 with questions or visit NetBenefits.
Education and resources to help you kickstart your retirement planning.
If you or your spouse have a pension from another employer, a key decision you need to make is when to begin your pension payments. The following sections can help you with that decision:
Your age at retirement has an impact on the value of your pension benefit. Consider the following age milestones as you estimate your pension benefits.
Deciding to retire before your normal retirement age may result in a reduced benefit because the benefit will be paid to you over a longer time period.
Complete your total retirement picture by including pension estimates at various ages in the decision process. Make the most of the retirement modeling tool in NetBenefits by including pension income in the analysis.
Another key decision at retirement is deciding how to receive your pension benefit or what optional form of payment works best for you. Generally, you can receive your pension benefit as a monthly “single life annuity” amount payable to you for your lifetime only, or as a “joint & survivor annuity” amount payable to you and after your death, to your beneficiary.
The following table shows some sample pension payment amounts for common optional forms of payment.
Follow these steps to add your pension income to the retirement modeling tool in the Planning & Guidance Center:
The retirement modeling tool will accept pension income earned at a prior employer. Request pension estimates from your prior employer and enter them into the tool as described above.
A few final retirement modeling tool features to update your analysis:
Review the “Using the Retirement Modeling Tool” in the Total Retirement Income section for more information or call a Workplace Planning consultant at 800-420-2363 if you have questions or want help reviewing your results.
When you're ready to retire, we're here to help at every step.
Once you are ready to retire, make sure you understand what happens to your benefits after you leave the company. Some of your retirement benefits have specific deadlines, so pay particular attention to the required action steps and completion dates to prevent any unnecessary payment delays. Consider:
Pension estimates can be very detailed and complicated. Plan to start gathering your pension information well in advance of your actual retirement date. Here are a few pointers as you review your estimates:
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research related topics through interactive tools, articles, videos and/or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go to learn, plan and collect your retirement benefits.
See what you’re doing well and ways you can improve your financial well-being.
Social Security is a federal program that provides benefits to retirees who have paid into the program and can provide additional income during retirement. Make sure you understand the basics of Social Security and consider your options carefully when electing benefits. Explore the following resources to learn more:
Visit the Social Security website for more information or to estimate your benefits
Social Security can be a key component of your total retirement income. Planning for your Social Security benefits requires knowledge about some basic eligibility conditions and knowing your full retirement age. The following sections can help you learn more.
Visit the Social Security website for more information or to estimate your benefits
Your full retirement age under Social Security varies based on the year you were born and can be between ages 65 and 67. You may begin payments as early as age 62, but reductions apply for beginning payments prior to your full retirement age.
By contrast, you must begin payments by age 70. Benefits will increase if you begin payments after your full retirement age. While many people could benefit from waiting until age 70, others may need this source of guaranteed income sooner to help pay for expenses. See the example below for more detail.
Colleen is age 62. If she waits until age 67 (her full retirement age) to collect, she will receive approximately $2,000 per month. However, if she begins taking benefits at age 62, she’ll receive only $1,400 dollars per month. This “early retirement” penalty is permanent and results in her receiving 30% less. If she waits until age 70, her monthly benefits will increase another 24% over what she would receive at age 67, to a total of $2,480 per month.
The retirement modeling tool in the Planning & Guidance Center on NetBenefits allows you to estimate Social Security Benefits payable at various ages. The estimates are based on your current pay and the age you wish to begin payments.
You may also consider visiting the Social Security website for estimates based on your complete work history. You can find valuable information about eligibility, full retirement ages and special payment arrangements for certain situations. Access the Social Security website to learn more.
Think about attending a Social Security workshop. Go to the NetBenefits Learning Hub to see available workshops, where you can learn valuable information and speak to a subject matter expert.
Here is some additional Social Security planning information that you may find helpful.
Once you are ready to start your Social Security benefit, make sure you understand the required steps. Consider:
Visit the Social Security website for more information or to estimate your benefits
Start by creating (or signing in) to your personal “my Social Security account” on the Social Security website to verify your information. Benefits are based on the earnings in the Social Security system. Other items you may want to gather include:
Applying online may be an easy option to complete your application at your own pace. However, you can also apply by phone or at a Social Security office.
If applying by phone call 1-800-772-1213, gather the information summarized in “Where to Start” above. A representative will take you through the process step by step.
If applying in person, check the Social Security website to find a local office, and confirm what you need to bring when you schedule an appointment.
Note that it takes up to three months to complete the payment application process and begin your Social Security payments.
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research topics of interest through interactive tools, articles, videos, or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go for learning, planning and collecting your savings benefit.
See what you’re doing well and ways you can improve your financial well-being.
Additional income in retirement can come from other resources you’ve accumulated over your working lifetime. The information in the following sections can help you plan your retirement.
Call the Northrop Grumman Benefits Center at 800-894-4194 or visit NetBenefits for more information.
Education and resources to help you kickstart your retirement planning.
Decisions on how and when to receive income from other sources may impact your planning. Financial education, expert advice and online tools can help you plan for and assess other retirement sources.
Call the Northrop Grumman Benefits Center at 800-894-4194 or visit NetBenefits for more information.
Below are examples of other resources to explore. This isn’t an exhaustive list, but it’s a good place to start your research.
Once you have identified the other resources you want to include in your retirement income, you can incorporate them into your overall plan. The retirement planning tools available on NetBenefits help you not only create a plan for retirement, but also offer guidance on how to include other sources in that plan. By answering just a few questions, you’ll be able to see your estimated retirement income from all your retirement assets.
Visit the Planning & Guidance Center for more details.
For personalized guidance, register for a complimentary financial one-on-one consultation or schedule a phone-based financial well-being review with a licensed Fidelity representative. During the conversation, you can discuss how to include other resources in your retirement plan. Visit NetBenefits to register.
Complimentary retirement planning sessions are also available by visiting a local Fidelity Investment Center near you.
When you're ready to retire, we're here to help at every step.
When you decide to retire, it’s important to review your plan and include all available assets. Knowing where to go for information can save you time. Consider:
Call the Northrop Grumman Benefits Center at 800-894-4194 or visit NetBenefits for more information.
Begin gathering information from your other sources at least one year prior to your retirement. The sources may be payable differently and it may take time to set up the various payments. Knowing this information early may help prevent unwanted confusion and delays when your retirement date arrives.
Once you have identified your other sources, call the Northrop Grumman Benefits Center (NGBC) at 800-894-4194 to speak with a representative, schedule a 1:1 session with a retirement planner or start a conversation with a planning & guidance counselor who can discuss how your other sources may fit into your overall retirement plan.
Complimentary retirement planning sessions are also available by visiting a local Fidelity Investor Center.
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research other resource topics through interactive tools, articles, videos or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go for learning, planning and collecting your savings benefit.
See what you’re doing well and ways you can improve your financial well-being.
Choosing the right health coverage for yourself and your dependents is an important decision for your retirement.
Understand your options, including what may be available through Northrop Grumman and how that aligns with your or your family’s health care needs.
This guide provides an overview of Northrop Grumman’s retiree medical benefits.
Education and resources to help you kickstart your retirement planning.
Retirement planning should include anticipating your future health care needs and those of your family, as well as deciding what type of health care coverage you would like. The following sections can help with your planning:
Before you retire, call the Northrop Grumman Benefits Center (NGBC) at 800-894-4194 to learn what’s available to you. Be sure to request a retiree medical modeling statement that will describe your options and costs.
When you retire from Northrop Grumman, you may:
Read the Northrop Grumman Retiree Medical Plan Summary Plan Description for additional details on how the Plan works.
Northrop Grumman is the integration of over 20 companies across aerospace, technology and defense industries. Your company heritage and employment history may impact your eligibility for the Northrop Grumman Retiree Medical Plan and what you pay for coverage.
In general, you are eligible for retiree medical coverage if, at the time you retire from Northrop Grumman:
You and Northrop Grumman will either share the cost for coverage, or you will be required to pay the full cost, depending on your company heritage and employment history. Note that most employees hired after 2003 are not eligible for subsidized coverage.
Call the NGBC to determine your eligibility. Request a retiree medical modeling statement, which will show your options and costs.
If you have more than one retiree heritage classification, make sure you compare the subsidies offered under each heritage (for both pre-65 and 65 or older) and choose which works best for you.
The Northrop Grumman Retiree Medical Plan offers medical coverage similar to what’s available to active employees.
You will be starting a NEW plan as a retiree. Amounts applied to the deductible and out-of-pocket maximum for your active coverage do not carry over to your new retiree coverage. All out-of-pocket amounts are reset at the beginning of each plan year, on January 1.
Note that dental and/or vision coverage are not offered through the Northrop Grumman Retiree Medical Plan. See what dental and/or vision coverage is available through the Northrop Grumman Federal Credit Union or choose to continue your active dental and vision coverage through COBRA.
If you are under age 65 and eligible for Medicare due to a disability, our medical plans coordinate with Medicare, so make sure you’re enrolled in Medicare Parts A and B.
If you are age 65 or older, Medicare will be your primary medical insurance. Access the Medicare website to learn more about Medicare and how to enroll.
You have the option to purchase additional coverage to supplement Medicare, and Northrop Grumman partners with Via Benefits, a private insurance exchange, to give you access to a broad range of supplement insurance plans and help in selecting and enrolling in supplemental coverage.
Depending on your company heritage and employment history, you may be eligible for a Retiree Health Reimbursement Account (RHRA) with Via Benefits. You receive a fixed annual “credit” amount in your RHRA that you can use to help pay for your purchase of an individual supplemental plan, prescription drug, dental, vision, TRICARE supplemental or long-term care coverage, or Medicare Part B premiums.
You must elect a supplemental medical, prescription drug, dental or vision plan through Via Benefits to use the RHRA. (Exception: you may enroll in Kaiser, TRICARE supplemental or long-term care coverage and notify Via Benefits of your enrollment).
Contact Via Benefits at 855-832-0976 or visit the Via Benefits website for more information and to enroll.
Certain retirees in a few heritage classifications may stay enrolled in a Northrop Grumman Retiree Medical Plan option when they reach age 65 instead of receiving an RHRA through Via Benefits, and some may receive a stipend through the Medicare Part B Reimbursement and Stipend Program that’s different from an RHRA. Your retirement modeling statement will indicate if you are eligible for these options.
When you retire from Northrop Grumman, you and your covered dependents may be able to continue your medical, dental, vision and/or EAP coverage for a limited time through COBRA. When COBRA ends, you may enroll in Northrop Grumman retiree medical coverage.
Call the NGBC and ask for the cost of COBRA coverage to help you compare your choices. COBRA is a continuation of your active coverage, so any amounts applied to your deductible and out-of-pocket maximum for the current year do not reset to zero.
If you are eligible for Medicare, ask the Northrop Grumman Benefits Center how COBRA and Medicare coordinate. Generally, if you were already enrolled in Medicare at the time you elect COBRA, you may remain enrolled in it until the end of the COBRA continuation period; however, Medicare will be your primary coverage. If you first enroll in Medicare after you elect COBRA, your coverage through COBRA terminates. Since each qualified beneficiary can independently choose to maintain COBRA coverage, their enrollment may continue even if you enroll in Medicare.
When you're ready to retire, we're here to help at every step.
The Northrop Grumman Benefits Center is your best source for information about your healthcare options in retirement. When you speak with a benefits service representative, request a retiree medical modeling statement so you know what’s available to you through Northrop Grumman. Take a look at the sections below for:
When you’re ready to retire, a Retirement Benefits Coordinator can help you with the retirement process. This specially trained Northrop Grumman Benefits Center service representative can answer questions about your retirement benefits and offer personalized service.
The Health Care in Retirement and Northrop Grumman Retiree Medical Plan Summary Plan Description include more details.
If you are under 65
Make sure you understand the different coverage effective dates as you plan for retirement.
To enroll in the Northrop Grumman Retiree Medical Plan, you must call the NGBC to make your elections. NetBenefits will not display your retiree medical plan options and costs, or allow online enrollment, until after you retire.
If you are 65 or Older
Medicare will be your primary health insurance coverage if you are age 65 or older, and you have the option to purchase additional coverage to supplement Medicare. Go to the Medicare website to learn how to enroll in Medicare. It’s important to sign up for Medicare as soon as you’re eligible. If you don’t, you may be charged higher premiums.
First, contact the NGBC to determine if you’re eligible for the Retiree Health Reimbursement Arrangement (RHRA) or other subsidized retiree medical coverage. Then, contact Via Benefits at 855-832-0976 or visit the Via Benefits website for information about the supplemental Medicare options they offer, and to enroll.
Split Coverage Situations
In some cases, the retiree may be age 65 or older when the spouse is still under age 65, or vice versa. In these situations:
COBRA Benefits
When you retire from Northrop Grumman, you and your covered dependents may be able to continue your medical, dental, vision and/or EAP coverage for a limited time through COBRA. When COBRA ends, you may enroll in Northrop Grumman retiree medical coverage.
Call the NGBC and ask for the cost of COBRA coverage to help you compare your choices. COBRA is a continuation of your active coverage, so any amounts applied to your deductible and out-of-pocket maximum for the current year do not reset to zero.
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research other resource topics through interactive tools, articles, videos or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go for learning, planning and collecting your savings benefit.
See what you’re doing well and ways you can improve your financial well-being.
Now that you have explored information about Savings, Pension, Social Security, Personal Income and Retiree Medical, the next step is to put the pieces together and compare your estimated expenses to complete your total retirement income picture. The information in this section can help with:
Total Retirement Income Diagram
Call the Northrop Grumman Benefits Center at 800-894-4194 with questions, or visit NetBenefits.
Successful planning for your total income during your retirement years comes from analyzing how to maximize your retirement income and minimize your retirement expenses. The following sections can help:
Maximizing your retirement income starts with identifying the available sources to include in your plan. Identifying them now and estimating how they might change over time can help give you the most accurate picture when you reach retirement age.
Your total retirement income represents one side of the equation, but it must be offset by your expected expenses during retirement. Your expenses may vary once you reach retirement; for example, spending on food, entertainment and transportation may remain stable, but spending on housing may go down and spending on health care may go up.
A general rule of thumb is to expect expenses between 55%-80% of your pre-retirement income. There are a number of retirement expense calculators in the Planning & Guidance Center. See the next section for more details.
Another major expense during retirement is medical cost. See the Retiree Medical section (click button above) for information about choosing the right health coverage for you and your dependents. Understanding your options, including what may be available through Northrop Grumman, can help you decide on the right plan for the right price.
Another way to analyze how to maximize income and minimize expenses is to model various scenarios and outcomes.
The Planning & Guidance Center on NetBenefits is a great resource for retirement planning. The section provides information and powerful tools that allow you to model your total retirement income. In the Help & Methodology section of the Planning & Guidance Center, access the series of short videos showing how to:
The primary objective of the retirement modeling tool is to provide you with education about your current savings and estimated future contributions, and the potential impact they may have on your estimated income in retirement. The tool allows you to explore hypothetical scenarios to potentially improve your retirement planning strategy.
It also offers a hypothetical illustration of the amount of monthly income you could potentially have in retirement. The overall score reflects your expected ability to meet expenses. It’s important that you understand the Retirement Score and perform the available interest sensitivity. Review the Results Chart, which shows the potential gaps and offers valuable suggestions. Analyze the potential impact of debt consolidation (know what we own and what we owe).
When you're ready to retire, we're here to help at every step.
Once you are ready to retire, use your total retirement income planning analysis to identify the sources you want to use. Some of your sources may have specific deadlines, so pay particular attention to the steps and timing of each to prevent any unexpected delays.
Call the Northrop Grumman Benefits Center (NGBC) at 800-894-4194 to discuss the requirements that could impact timing of your Northrop Grumman-provided benefits. Request a personal Retirement Benefits Coordinator (RBC) through the NGBC to help walk you through step by step and reduce some of the surprises.
Once you have identified the available sources to include in your plan and modeled various scenarios, review each of the sections in Retirement Planning to identify specific steps required to initiate the benefits.
Personalized online planning experience to help you build a clear financial picture for your retirement.
Research topics of interest through interactive tools, articles, videos, or workshops.
Set up time to meet 1:1 with a retirement planner.
NetBenefits is the place to go to learn, plan and collect your pension benefit.
See what you’re doing well and ways you can improve your financial well-being.