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Financial Planning for Military Veterans to Maximize Retirement

financial planning for military

After serving your country in the Army, Marine Corps, Navy, Air Force, Space Force, or Coast Guard, you’re most likely looking forward to retirement. The transition from the military to civilian life has its challenges, but financial planning for military Veterans with AAFMAA Wealth Management & Trust LLC (AWM&T) can offer tailored strategies to help maximize your retirement.

Many resources and benefits are available to retiring or retired servicemembers. After years of dedicated service, understanding your military benefits and taking full advantage of them can make a big difference for you and your family.

AWM&T’s financial planning for military servicemembers and Veterans can help you align those benefits and resources to go a long way in realizing your retirement goals.

Financial Planning for Military Benefits

In recognition of your service to our country, the federal government and civilian organizations offer benefits, services, and opportunities that can be personalized to fit the retirement you have in mind.

From your pension to healthcare to housing, careful military financial planning can help you grow your nest egg, maximize tax efficiency with retirement investments, support your health, reduce your expenses, and provide for your spouse or children after you’re gone.

Your Military Pension

Among the most valuable of your military benefits is your pension. Four factors influence the amount you’ll receive from your pension in retirement:

  1. Your length of service
  2. When you entered the military
  3. The type of retirement you’re entering
  4. The percentage of any disability you have

Military personnel on Active Duty, Reserve, or Guard are eligible for retirement pay after 20 years. However, the government created the Blended Retirement System (BRS) to guarantee that servicemembers who don’t qualify for full retirement receive at least some retirement benefits.

To formulate a plan to enhance your benefits, it’s important to know whether your pension is part of the Final Pay plan, Legacy High-36 pension, REDUX, BRS, Thrift Savings Plan, disability, or Survivor Benefit Plan (SBP).

Financial planning for military servicemembers can help you align your retirement pay, retirement accounts, Social Security, and other income sources to give you the retirement you’ve earned.

Planning for Tax Implications

AWM&T’s financial planning for military servicemembers can also help you prepare for the tax implications of your military benefits. In general, military retirement pay is considered taxable income at the federal level. Some states exempt military retirement pay, while some states provide a partial exemption.

Military financial planning can help guide you with a strategy for maximizing deductions or investing in tax-advantaged retirement accounts.

Healthcare Benefits

When planning for retirement, military personnel must keep healthcare in mind — both in the short and long term.

The primary healthcare benefit available for military retirees is TRICARE. When eligible, you must enroll within a specified period to receive coverage, and the cost and coverage can vary.

You also may be eligible for healthcare through the Department of Veterans Affairs (VA), especially if you have a service-related disability. Dental and vision care are available for retirees through the Federal Employees Dental and Vision Insurance Program (FEDVIP).

Maintaining your health and the cost of your healthcare can significantly impact how long your money lasts in retirement. This means it’s a critical component of financial planning for military servicemembers!

Additional Resources

Many offerings and discounts are available for military personnel and Veterans that can help you keep more of your retirement pay to enjoy or invest with the intention of establishing a solid safety net. Here are some programs and resources that can benefit you in retirement:

  1. Commissary and Exchange
  2. Morale, Welfare, and Recreation (MWR)
  3. Space-Available Travel
  4. Veterans service organizations
  5. Education and employment services

Along with the benefits from the military and associated organizations, many retail outlets also provide discounts to military personnel and Veterans to provide assistance in retirement.

Find a Military Financial Planner

At AWM&T, we exclusively serve military families just like yours. We’re here to deliver the wealth management solutions and the specialized financial advice you need and deserve. To get in touch, call 1-910-307-3500 or click here to speak to a professional. Learn more on our website.

About Us

AWM&T was created in 2012 to meet the financial needs of military families. We provide experienced, trustworthy, long-range financial planning, investment management, and trust administration services to support financial independence and security. We aim to be the premier provider of fiduciary services by always working for Members’ best interests.

We are proud to share the mission, vision, and values of AAFMAA, our parent company. We consistently build on AAFMAA’s rich history and tradition to provide Members with a source of compassion, trust, and protection. Through AAFMAA’s long-standing legacy and our financial expertise, AWM&T is honored to provide personalized wealth management services to military families across generations.

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