Often, when people have conversations about what to consider when planning for military retirement, the advice focuses on being in a good financial situation. Perhaps you have already prepared your finances for the transition out of the military: You have a strong budget, you have built an emergency fund to help pay for unexpected expenses when you leave, and you are ready for your post-military career.
What other things will you need to consider? Here are a few: You will need to look into the military benefits you have coming and how they can affect your financial situation. And you should understand and consider all of these things when you are less than five years from military retirement:
1. Your Military Benefits
You are entitled to certain benefits for your service when you leave the military. There is no comprehensive list on which benefits to which you are entitled since there are many factors that determine what you are qualified to receive. But some factors that affect your benefits include the length of your service and choices you made during active duty. can. You will need to do some of your own research to understand the specific benefits available to you and how to take advantage of them.
For example, it might seem repetitive to apply for healthcare through the Department of Veterans Affairs (VA) when you can also receive TRICARE benefits. However, VA Health Care has a certain window of time when you can register for benefits no matter what your income or disability status are and, although you may not need these benefits now, you could need them in the future.t Registering as soon as you can will help ensure you have access to those benefits when you need them.
2. Survivor Benefit Options
Military retirement offers different benefits based on your family's situation. A standard military retirement ends when the retiree dies, but it can be extended with the Survivor Benefit Plan (SBP). For some, having life insurance is the best option, while for others, the SBP works best. Only you will have to do the research to decide which one is best for your situation.
3. Filing Your VA Claim
Servicemembers retiring from the military should consider filing a claim with the VA to earn military benefits for anything that happened while serving.. Consider meeting with a Veteran Service Organization, as well, to help answer questions, file paperwork, and act as a Power of Attorney to represent you in your claim. Your VA claim can be filed up to 180 days prior to leaving the military, but it takes time to gather all the information needed to file your claim, so you will want to start this process earlier to ensure you are ready at the 180-day mark. It’s recommended you start the process one year out from leaving the service.
4. VA Home Loans
Leaving the military can mean stability for military families. Knowing you will not have to move for the next assignment means you can set down roots and buy a house. A VA Home Loan has many benefits for Veterans compared to traditional FHA loans, including no down payment and no PMI.
5. Buying Back Your Time for a Federal Civilian Job
Even if you retire from the military, the Federal Military Time Buy Back is an option for you. If you get a federal job after you leave the service, research whether it is worth having the federal government buy back your time, which can change the timing of when you retire from your career. This program allows Veterans to receive credit for their military service time to be added to their years of civil service with the government. It can increase your retirement annuity and potentially lead to an earlier retirement.
6. State Benefits for Military Retirement
Since the benefits you receive for your service vary by state, you’ll want to research which ones are available where you live. Many states offer specific benefits to military retirees as well as disabled Veterans. Be sure to research regularly, since benefits are periodically updated.
7. Internship Programs
Internship programs are an invaluable tool that allow you to work for a civilian company while still serving in the military. They can help you acquire hands-on experience to learn about a new career before you leave, and they can be branch or career field dependent, so you will have to research what is available where you are.
8. Keeping Documents
Finally it is important to keep a copy of all your military records, including medical and dental;all orders (especially those to foreign countries along with a Leave and Earning Statement to show you got paid in said country); documents that show you paid back any debt to the government; and your DD 214, which among other things, shows the type of discharge you received that in turn identifies what types of benefits you will receive from the government. These types of documents should be stored safely and securely for easy access, such as in your Digital Vault, if you are an AAFMAA Member.
Transitioning can be scary but you can also be prepared for life after the military. Besides ensuring you are prepared financially there are other areas that you can prepare and do research to ensure you are ready for the next stage of life.