Preparing for Military Retirement: Key Financial Steps

Military retirement is a big deal, as you have to consider a lot of things. After so many years of service, stepping into civilian life can be hard, and it might bring a lot of emotions and maybe some questions.

However, it’s important to make sure that you understand what’s coming ahead and what resources are available.

Understanding 2023 Military Retirement Benefits

As a retired military member, you will receive some benefits, so it is important that you understand what kind of benefits you will receive before doing anything else. These benefits are a big part of your future, so you have to make sure that you take some time to learn what you qualify for.

There are different retirement systems based on when you joined the military. Some service members fall under the Legacy High-3 system, while others are a part of the Blended Retirement System (BRS).

The Best Sitrep for Today's Vets.

Benefits intel, military tech, field-tested gear, untold stories of those who served, and history like you've never heard before. Sign up for the VeteranLife newsletter.

​

Subscribe

Always free. 🇺🇸 | Unsubscribe anytime.

Both of these pension plans require twenty or more years of service, and the amount you will receive from each plan is also based on the amount you earned from your basic pay and from the date you joined the military.

If you want to know your basic pay amount and the number of years you served, you can find it on the Defense Finance and Accounting Service website.

You qualify for the following pension plans if you joined the military:

• Before January 1, 2006: You qualify for the Legacy High-3 retirement system.
• Between January 1, 2006 and December 31, 2017: You have a choice of keeping the Legacy High-3 or choosing the BRS.
• After December 31, 2017: You qualify for the BRS.

Besides the pension plans, you could also qualify for the following benefits:

• Healthcare Plans Through TRICARE
• Commissary and Exchange Privileges
• VA Home Loans
• Education Benefits

Planning Post-Retirement Career as a Veteran

Once you know what’s coming for you from your military retirement benefits, what you should do next is see what you want to do. Some people jump into a new career, while others decide to go back to school, volunteer, or start their own business. It really depends on what your vision is for yourself after being in the military.

If you’re really planning to retire, here are a few questions you can think about:

1. Do you want to keep working, and if so, what kind of job would make you happy or would make you feel that you still have a sense of purpose?
2. Are you open to moving? If yes, there are places that may have better job options for you and a lower cost of living.
3. What kind of lifestyle do you want? If you know, this will help you pick a location or a career that might fit your goal.

You can start early in researching, learning, and understanding what might be there for you before retiring because many people don’t realize that they have so many benefits and opportunities outside waiting for them.

Assessing Financial Readiness for Military Retirement

Money becomes a huge part of retirement. With this, you have to look at both your spending and what you’ll be earning after your retirement.

Military pay is always helpful, but let’s be real: it doesn’t cover everything, especially if you’re supporting a big family.

Before you retire, you have to make sure that you are financially ready, so here are a few tips to check your financial stability:

1. Create a budget that includes your future income and expenses
2. Check your savings and make sure you have an emergency fund
3. Consider insurance needs, like health, life, or home coverage
4. It’s not going to hurt if you talk to a financial advisor, especially if they understand military benefits

It’s always helpful to use a military retirement calculator so you can estimate what you’ll earn moving forward because the earlier you plan, the easier it is for you.

Transition Assistance Programs for Retiring Military Personnel

Luckily, there is a lot of support out there for military retirement, so it’s really easy to navigate retirement if you’re planning to, and you don’t have to figure out everything on your own.

There are a lot of programs and organizations that were built and are out there to help military service members; you just have to know where to find them because these are the resources that you can use and refer to for your retirement journey, but it’s important to keep in mind that these are not the only resources that are available because there are so many resources out there.

Military retirement is indeed a big step, and it can be a little challenging, but if you know and understand what’s out there for you, it can be rewarding. You just have to make sure that you know the process and understand what’s out there.

Read next:

• Army Enlisted Academy Prevents Students from Writing Essays That Include DEI Content
• New TRICARE Policy Lets You Stay with Your Primary Care Manager if You Move—No Waiver Needed
• TRICARE Changes Lead to Even More Unpaid Claims, Disruptions for Families

Sources:

• Military and Veterans Pay and Benefits