Retirement Planning for Veterans
For those serving in the military, many day-to-day practices and options are different in comparison to civilian life. These differences also extend to retirement for military personnel. The U.S. Armed Forces offers its retirees an outstanding pension plan that includes benefits, starts immediately upon retirement and is not contingent upon the service member's age. Some retired service members begin receiving benefits as early as age 37. Pension checks also come with a built-in cost-of-living-adjustment. However, there is more to know about military retirement than just the Social Security checks that come in the mail. Select from the categories below to find out more about retiring with the military:
- Inflation-protected retirement pay
- Lifelong medical care
- Post-service military benefits
Inflation-Protected Retirement Pay
The military benefit of inflation-protected retirement pay guards against the loss of retirement funds due to the volatility of the economy. Inflation is when a dollar bill does not hold the same monetary value that it once did. The military pension is indexed for the likelihood of inflation in the economy, and it will keep the pension dollars monetized and tied to the current value. This means that no matter how bad inflation becomes, the pension will adjust to the new cost of living and issue out the appropriate money based on the cost-of-living adjustment. Having a pension indexed with the Consumer Price Index means a more stable future for retiring veterans.
Lifelong Medical Care
Medical benefits from the military are lifelong and can pass from generation to generation. Military families and members can choose plans from TRICARE in the standard, prime and lifetime packages. Associated costs come with the different plans, but they are much cheaper than any other health care plans on the market. The main benefit is that there is automatic acceptance for all military members and their qualifying families, regardless of age or health. Since the cost of living is rising more slowly than medical aid costs, having guaranteed lifelong health care is a considerable bonus to service.
Post-Service Military Benefits
Those members of the military ready to retire may benefit from knowing about the non-tangible benefits that the military gives to all its former soldiers. Military retirees can still shop and have full access to the base amenities. This means base clubs, theaters, shops and even travel plans are all available to retirees, and the retiree is not required to live on base. Travel plans require travel on military aircraft and only offer seating when space is available, but this can be a great way to see the world. It is recommended to take full advantage of this and shop at the base where everything is sold at cost with no tax add-ons, which will allow for great money-saving opportunities.
Retirement through the military system is one of the best overall retirement plans in the U.S., providing top-notch medical, dental, and vision care, while allowing retired soldiers to continue to enjoy the same discounts and savings that they did when they were on active duty. The additional lifelong benefits for service in the military are not only enjoyed by military personnel, but by their families as well.