Military spouses like you are unsung heroes who provide emotional and physical support to your partners while they serve our country. You face unique challenges, including frequent moves and long deployments, and rightfully enjoy several benefits that come with being a part of the military family. Let’s explore the benefits of being a retired military spouse and how AAFMAA Wealth Management & Trust LLC (AWM&T) can help you prepare financially for your retirement.
When your spouse retires from the military, you are entitled to certain benefits, including:
One of the most significant benefits of being a retired military spouse is continued access to TRICARE, the military's health insurance program. TRICARE offers comprehensive medical coverage to retired military families, including hospitalization, prescription drugs, and mental health services. Generally, when a retiree or retiree family member becomes individually eligible for Medicare Part A and enrolls in Medicare Part B, he or she is automatically eligible for TRICARE For Life. Read more about TRICARE benefits for retirees here.
Another advantage of being a retired military spouse is maintaining on-base privileges with your military ID and access to the Commissary and Exchange stores. These stores offer discounted prices on groceries, household items, clothing, and electronics. You can continue to save a considerable amount of money by shopping at these stores, especially if you live in an expensive area. If you’ve retired Outside the Continental U.S. (OCONUS), an additional benefit is the ability to use coupons for six months past the expiration date at the Commissary.
Retired military spouses are eligible for certain education benefits. The National Military Family Association's spouse scholarship program is not rank-specific and any spouse who possesses a valid military ID can apply. If your spouse is leaving the military as the result of a service-connected disability, you may be eligible for the Department of Veterans Affairs’ Survivor and Dependent Education Assistance program.
Programs like the Yellow Ribbon Program can help cover costs at private or out-of-state institutions, reducing or eliminating out-of-pocket expenses. Many states and individual colleges also offer their own tuition assistance or scholarships for servicemembers, Veterans, and their dependents.
Because these benefits vary widely by state and institution, the best way to understand your options is to contact your state’s Department of Veterans Affairs and the financial aid office at your chosen school. Doing so ensures you receive the maximum support available for your education goals.
You and your spouse will need to decide about the Survivor Benefit Plan (SBP) before separation from the military. The SBP provides financial support to military spouses and/or children when a military member dies while on duty or after retirement. Eligible beneficiaries under the SBP are typically spouses or children (referred to as annuitants) who receive a monthly annuity payment upon the passing of the retiree. The SBP pays beneficiaries up to 55% of the servicemember’s retirement pay for as long as the surviving spouse lives, or until the qualified dependent child reaches a certain age.
The SBP is akin to a life insurance policy with no cap, but it is not automatically granted upon military retirement. Retirees have the ability to opt out of this benefit, but require the consent of their spouse to do so. You can learn more here from the Department of Defense (DoD) website.
How the Survivor Benefit Plan (SBP) Impacts Your Finances
If you are a retired military spouse who is divorced from your servicemember, you may still be entitled to certain benefits. These benefits include:
If your former spouse dies, you may be eligible for a portion of their military retirement pay. The Uniformed Services Former Spouse Protection Act (USFSPA) allows state courts to divide military retirement pay between former spouses in a divorce settlement. If you were awarded a portion of your ex-spouse's retirement pay in the divorce, you may continue to receive that payment after their death.
If you were married to a servicemember for at least 20 years, and your spouse served for at least 20 years, you may be eligible for several benefits, including healthcare, Commissary and Exchange privileges, and access to certain military installations. These benefits can make a significant difference in your retirement, allowing you to save money and live comfortably.
As a retired military spouse, it's essential to prepare for your financial future. One way to do this is by consolidating your retirement accounts. Consolidating your accounts can simplify your finances, reduce fees, and make it easier to manage your investments. By working with our team of military-focused professionals at AWM&T, you can prepare for your retirement with confidence.
If you're a retired military spouse, it's crucial to work with a team of financial professionals who understand your unique needs and challenges. AAFMAA Wealth Management & Trust LLC (AWM&T) specializes in providing personalized financial planning solutions exclusively for military families like yours. We offer a comprehensive range of wealth management services, including financial planning, investment management, and trust services, tailored to meet your needs. To receive personalized advice and support for your retirement planning, please contact an AWM&T Relationship Manager or call us at 1-910-307-3500.
Founded in 2012, AAFMAA Wealth Management & Trust LLC (AWM&T) was created to meet the distinct financial needs of military families. We proudly deliver experienced, trustworthy financial planning, investment management, and trust administration services – all designed to promote lasting security and independence.
We are proud to share the mission, vision, and values of Armed Forces Mutual, our parent company. We consistently build on the Association’s rich history and tradition to provide our Members with a source of compassion, trust, and protection. At AWM&T, we are committed to serving as your trusted fiduciary, always putting your best interests first. Through Armed Forces Mutual's legacy and our financial guidance, we provide personalized wealth management solutions to military families across generations.