PLANNING FOR RETIREMENT

If you remain in the service for at least 20 years, you can retire and receive these life-long benefits:

  • 50 percent of base pay plus 2.5 percent for each additional year served (cannot exceed 75 percent of base pay after 30 years).

  • annual cost of living increases (COLAs).

  • TRICARE medical coverage (costs and details change for retirees) and use of VA medical facilities.

  • on-base privileges - commissary, exchange, package store, recreational facilities, clubs, family support services, etc.

  • relocation to your spouse's Home of Record or other desired location (not to exceed Home of Record relocation costs).

You will receive survivor's benefits if your spouse dies. For details on military retirement benefits, visit the following websites:

http://www.dfas.mil/rapay.html
www.militarymoney.com (search under “retirement”)
www.military.com (search under “retirement”)

Needless to say, but always important to re-emphasize, make sure you and your spouse take the time to do adequate retirement planning together. Here are some important decisions you need to make:

  • What do you want to do with the rest of your lives?
  • What type of job or career do you want to pursue?
  • What additional education and training do you need or want?
  • Where do you want to live during the next five years?

Chances are you are retiring at a relatively young age - still in 30s, 40s, or 50s - with many years of worklife ahead. You will receive many military benefits, you'll probably want to supplement them with a full- or part-time job. While transitioning to the civilian world can be tough, you'll find many services to help you along the way.

 

SOURCE: Adapted from Ron Krannich, Ph.D., The Military to Civilian Transition Pocket Guide (Manassas Park: Impact Publications), page 1. Copyright 2009. All rights reserved. Copying strictly forbidden.