If you’ve served in the military, you may be eligible for myriad benefits at retirement.
As you look ahead or prepare to step away from military life, it can be helpful to know what to expect. The amount of financial support and assistance you receive will depend on several factors, including the number of years in service you’ve accumulated when you retire.
Here’s what to know about military benefits as you prepare for your retirement:
— Understanding military retirement.
— Financial benefits.
— Housing and housing assistance.
— Educational opportunities.
— Employment and career support.
— Shopping and recreational perks.
— Other veteran benefits after retirement.
[READ: Essential Sources of Retirement Income]
Understanding Military Retirement
In general, military members who complete 20 years of qualifying service are eligible for retirement. For each qualifying year, you’ll need to have a minimum of 50 retirement points. These can be earned in various ways, including via active duty, reserve membership, training and instruction. If you meet the requirements, you could receive a pension from the military at retirement.
Those who join the military and retire after completing two decades of service will need to make many important decisions. You could choose to move from active duty to being in the reserves. You may want to start another career, which could involve some additional studies. You might want to start your own business based on the skills you’ve acquired during your service.
As you look ahead, planning is key, according to Forrest Baumhover, a retired Navy officer and financial planner in Tampa, Florida. If possible, you should start researching what you’ll do in retirement at least five years before getting there. “Five years in advance is one to two tours of duty and is not too early to start thinking in general about career selection and location preferences,” Baumhover says.
Financial Benefits
There are different forms of retirement pay available through the military. You can expect to receive a steady income if you spent a minimum of 20 years in service. There could also be additional benefits, especially if you contributed to a retirement account.
You may have access to:
— A pension: Those who are not disabled and qualify for a retirement plan could be enrolled in the Final Pay plan, High-36 Month Average plan or the Military Retirement Reform Act of 1986 (often called REDUX) plan. The amount you’ll receive when you retire will depend on your final pay and years in the military.
— A Thrift Savings Plan: This is a defined contribution plan that allows military members to set aside funds for investing with contributions from the government. The funds can then be withdrawn or distributed in retirement.
— Survivor Benefit plan: This plan provides a portion of a military retiree’s pay to surviving dependents, including spouses and children. Enrollment in the plan usually takes place at retirement, according to Marcus Miller, a certified financial planner at Mainstay Capital in Jacksonville, Florida, who served as a pay and benefits manager in the U.S. Navy for nine years. “Participants may choose various coverage options based on their beneficiaries’ needs,” he says. The cost for it is known as the premium, and it is deducted each month from the retiree’s monthly pension before it is sent to the beneficiary.
Housing and Housing Assistance
If you’re looking to purchase a home after retiring from the military, there could be help available. The Department of Veterans Affairs provides veterans with home loans that have certain advantages. You might be eligible for assistance, such as no down payment or low interest rates, when you buy a house.
[Read: The Pros and Cons of Retirement Housing Options.]
Educational Benefits
For those who choose to complete a college degree or continue their studies for a specific industry, the GI Bill could make it easier to do so. “The GI Bill will pay for an honorable discharged retiree’s education, and that benefit can be extended to family members,” says Joseph Gutheinz, an attorney at Gutheinz Law Firm in Pearland, Texas, and military retiree whose father, father-in-law and other relatives also served in the military. This provides veterans and their loved ones with funding for tuition costs and related educational expenses to help them pursue their goals.
Employment and Career Support
The military has a Transition Assistance Program, which is designed to help military members shift into civilian life. You could get help creating a resume, looking for a job and fine-tuning your interviewing skills.
You could also have an advantage in certain areas. Some companies and federal agencies specifically look to hire veterans. If you can connect with a place that is interested in onboarding a former military member, you could increase your chances of securing and maintaining a position.
Shopping and Recreational Perks
After you retire from the military, you and your family may be able to have access to military exchanges and commissaries. With this setup, you’ll be able to enjoy additional discounts and tax-free shopping.
Many stores, restaurants and attractions will offer veterans a discount. On Veterans Day, retirees can often eat for free or receive services at no charge at retailers and businesses.
The Army Morale, Welfare and Recreation program offers a range of activities and facilities for veterans and their families. If you’re looking for ways to stay engaged, you could find opportunities for fitness, sports, entertainment and travel-related activities.
[READ: 13 Grocery Stores With Senior Discounts]
Other Veteran Benefits After Retirement
You could qualify for additional perks when you step away from the military, including:
— Tricare: You’ll be eligible for health care coverage for both active and retired service members and their families.
— Travel: If space is available, “retirees and their families can fly for free on military transport, Space A, around the country and the world,” Gutheinz says.
— Disability benefits: If you were injured during your years of service and become disabled, you could qualify for benefits. “Service members with service-connected disabilities may pay less on their property taxes, park their cars for free, drive on toll roads for free, secure free hunting and fishing licenses, and, depending on the state, access parks for free,” Gutheinz says.
— Burial and memorial benefits: The VA helps cover costs related to funeral, burial and transportation costs for eligible retired veterans.
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Benefits You Qualify for After Retiring From the Military originally appeared on usnews.com
