Retirement is a significant milestone in anyone's life, and for military Veterans it comes with a unique set of benefits and challenges. Understanding and maximizing your military retirement benefits can make a substantial difference in your post-service life. Get help navigating your transition from the military financial professionals of AAFMAA Wealth Management & Trust LLC (AWM&T). Start with these essential aspects of making the most of your military retirement benefits.
After years of dedicated military service, your pension is one of the most valuable benefits you'll receive. Military pension plans vary based on factors such as years of service, rank, and when you joined. To maximize this valuable asset in retirement, you need to understand how it works and what your best options are.
The first step in making financially informed choices for your pension is to identify which plan you have:
For a full synopsis of the above pensions, please see Navigating Your Military Pension: Making Financially Informed Choices.
From here, essential considerations will ensure you receive your best payout to retire securely. This includes meeting and exceeding contribution limits, maintaining longevity requirements, or seeking promotions, special pay, or assignments to boost your base pay.
A well-thought-out plan can lay the foundation for a fulfilling retirement, by ensuring financial stability, providing emotional well-being, and creating a smooth transition into your next phase of life. It includes elements such as evaluating your specific retirement accounts and combining them with other applicable income streams such as Social Security or disability benefits.
Once your retirement plan is aligned with your goals, regularly review and adjust it as your circumstances change. Life events, investment performance, and evolving goals may require modifications to your strategy. Staying flexible and adaptable is essential to ensuring that your retirement remains on track.
Healthcare is a top concern for retirees, and military Veterans have access to unique medical benefits.
TRICARE plans for retirees include:
Please note, that although TRICARE covers retirees, Medal of Honor recipients, and their families, other separated service personnel are generally not covered. Veterans who do not qualify for TRICARE are typically eligible for medical services through the U.S. Department of Veterans Affairs (VA) health care.
To be eligible for TRICARE retiree benefits, you must meet the following criteria:
Military retirees need to understand their specific TRICARE options and responsibilities, as eligibility and requirements may vary based on factors such as location, family composition, and age. Staying informed about any changes in TRICARE policies and enrollment processes is crucial to ensuring uninterrupted healthcare coverage during retirement.
VA home loans offer Veterans an excellent opportunity to maximize retirement benefits by providing access to affordable homeownership, leveraging retirement income for qualification, and offering flexible financing options. This can help you secure stable housing, build equity, and enhance your financial security in your post-service life.
Veterans can leverage VA home loan benefits to enhance their retirement plans through:
Planning for the future of your loved ones is an essential part of retirement. Familiarize yourself with the benefits available to the children of Veterans, and ensure that your survivor benefits and estate planning are in order.
The Survivor Benefit Plan (SBP) provides a portion of military retirement income to the surviving spouse or eligible dependents in the event of the passing of a service member. Here are some key considerations:
Estate planning is not solely about the distribution of assets; it's also about providing for your family's financial security and ensuring that your wishes are carried out smoothly. By working with legal professionals and understanding your options, you can create a comprehensive estate plan that protects your assets, minimizes stress for your loved ones, and maximizes the benefits your heirs receive.
Considerations include:
Understanding how to leverage your Thrift Savings Plan (TSP) can significantly boost your retirement savings.
Military Veterans often have access to a wide range of discounts and perks from various companies and organizations. These perks can provide you with valuable savings and benefits during retirement. They include:
Military retirees often have access to legal and business support services that can prove invaluable during retirement. Here are some helpful resources:
Retired servicemembers and their dependents are eligible for free legal assistance at their local military installation. These services include:
Please note that legal assistance is provided based on available resources and personnel. If a Judge Advocate General Corps (JAG) office can't help, they may connect you with a lawyer referral service.
Veteran tax exemptions are designed to recognize and honor the sacrifices and contributions of Veterans by providing special provisions for federal and state taxes. By capitalizing on these exemptions, Veterans can reduce their tax liabilities and increase their financial stability in retirement.
For many Veterans, entrepreneurship is a way to channel their skills, discipline, organization, and military experiences into a new career path. There are important factors to consider, though, including financing options, grants, certification, and loans. Read what you need to know before starting your Veteran-owned business, here.
Whether it's your pension, healthcare, homeownership, wealth planning, financial investments, or legal support, there are numerous resources and benefits available to help you thrive in retirement. For informed decisions to ensure a comfortable and fulfilling post-military life, contact an AWM&T Relationship Manager today. We’ll provide you with personalized service that puts your family’s finances first. Speak to one of our military financial professionals, or give us a call at 1-910-307-3500.
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 AAFMAA Members’ best interests.
We are proud to share the mission, vision, and values of AAFMAA, our parent company, consistently building 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.