Planning Beyond Service: Retirement Strategies for Veterans and Families
To celebrate National Veteran and Military Family Month in November, let's look at what military families need to know when approaching retirement strategy, including how to make the most out of your benefits as you transition to civilian life. Transition Assistance Program: The first thing to know when retiring from the military is that you will likely need to go through the Transition Assistance Program, or TAP. TAP is a program that provides information, tools, and training to make your retirement as seamless as possible. Some of these training resources are optional, but some are mandatory before leaving the military.1 In the mandatory requirements, you may need to:
Your individual circumstances may be the basis for these requirements, and each branch of the military has its own specific information. Check out the TAP website to find out everything you need to know.1 Post-Retirement Income: The most crucial aspect of a retirement strategy for anyone, including veterans and their families, is creating an income strategy. The goal of a retirement income strategy is to have the resources to support you throughout your retirement years. To do this, you need to understand your income sources and establish a budget accordingly. There are different retirement pay options available to military members and their families. For service members with an entry date before September 8, 1980, you will receive a final basic pay; this is a defined benefit that equals “2.5 percent times the number of years of service times the member's final basic pay on the day of retirement.”2 For service members with an entry date between Sept. 8, 1980, and July 31, 1986, you will receive “High-36,” which is a “defined benefit that equals 2.5 percent times the number of years of service times the average of the member's highest 36 months of basic pay.” This retirement pay is also applicable to service members with entry dates after July 31, 1986, and before Jan. 1, 2018, who did not choose REDUX or opt into the Blended Retirement System.2 Lastly, the military offers the Blended Retirement System. This system combines elements of the legacy retirement system with benefits similar to those provided in many civilian retirement plans.2 As you build your post-retirement budget, know how much money you will be earning in retirement. In addition to the plans listed above, military families should consider annual adjustments and any Social Security benefits. Insurance Strategy: Medical expenses are a consideration in retirement. Fortunately, as a veteran, you have access to insurance plans that cover you and your family. The primary one is TRICARE, but you must enroll yourself and eligible family members to avoid losing these benefits. The TRICARE website offers a wealth of valuable information, including enrollment details and health plan options. Failure to enroll in a TRICARE plan within 90 days of retirement from active duty may result in loss of benefits.3 In addition to TRICARE, you may need to enroll in dental and vision insurance. You can do this through the Federal Employee Dental and Vision Insurance Program (FEDVIP). FEDVIP is a voluntary program that allows you to choose from among several dental and vision carriers. The amount you pay for these programs will depend on the ones you select.4 As we celebrate National Veteran and Military Families Month and recognize all the hard work and sacrifice of our military members, we want to share as much information as possible so you can retire with ease. Together, as your financial professional, we can develop a personalized retirement strategy for you. |
1. DOL.gov, September 29, 2025 |
