If you plan on staying in the military until retirement, you’ll want to start thinking and preparing for your future. Retiring from the military can be just as challenging as retiring from a civilian job, though there are plenty of distinct differences. In this guide, we’ll walk you through military retirement and give you tips and strategies to handle each stage of the process.

What Service Members Are Eligible for Retirement?

In most cases, service members can retire after they’ve served 20 years in the armed forces. A service member's Date of Initial Entry into Military Service (DIEMS) will determine which retirement system they’ll fall under. When you retire from the service after 20 years, you’re eligible for various benefits. Before you start the retirement process, you should learn what benefits you’re eligible for so you can better plan for your transition out of the military.

Tips and Strategies for Military Retirement

Successfully retiring from the military takes careful planning, so it’s essential to take some steps early in your career if you plan to stay in the military for a long time. You’ll also want to learn more about what you’re entitled to so you can take advantage of your benefits once you finally retire.

Below, we’ve curated a list of tips and strategies to help you plan your retirement and achieve a successful transition into civilian life.

1. Start Planning Your Finances Early

If you already know that you plan on serving at least 20 years in the military, you’ll want to start planning your finances as soon as possible. Even if you don’t want to make a lifelong career in the armed forces, it’s best to learn about your investment and saving options so you have something started when you transition to a new field.

There are many different ways to start savings, which can include:

●Opening a savings account

●Contributing to your TSP

●Creating a strict budget

●Working with a financial planner

●Contributing to an IRA

●Taking advantage of employer matching

●Researching investment options

You may use one method to save for retirement or multiple methods to build your wealth. When you start saving, consider how much you’ll need each year during retirement. Since the average life expectancy has gone up, you may live for 30 or more years after your retirement date. You’ll want to have enough to live on, especially if your work options are limited due to service-related injuries or conditions.

If you’re not sure where to start, you can reach out to your resources on base to help you create a savings and retirement plan.

Once you get closer to retirement, you’ll want to look into your military retirement pay, which can include final basic pay and REDUX. You should also apply for VA disability at least 90 to 180 days before your separation, which can provide extra income for your retirement, especially if you’re unable to work. Knowing what you’ll be making after your time in the service and having savings to fall back on can help you live a more comfortable retirement and take the stress off your shoulders.

2. Complete Your Transition Steps Sooner Rather Than Later

If you have your finances in order early, the next thing you’ll need to focus on is completing the transitional steps you must take as you get closer to your retirement. These requirements take place anywhere between one to 36 months of your retirement date. Some of the items you need to complete include:

●Initial Counseling and Pre-Separation Brief: You will need to complete your initial counseling session and pre-separation counseling at least one year before your retirement date. However, you can schedule this as early as 24 months, or two years, before the official date if you want to get a head start on the process.

●Core Transition Curriculum: Each service member who’s retiring from the military must participate in the Transition Assistance Program. When you’re retiring, you’ll need to attend briefings regarding employment preparation, transition planning, and benefits offered by the VA.

●Final Medical Exam: Service members who are retiring from the service are required to complete a final medical and dental exam at least 90 days before their retirement date. However, you’ll want to consider scheduling these appointments earlier in case you need to make any follow-up appointments. Your medical records will be critical when you’re applying for disability through the VA.

●Final Move: After you leave active duty, you’ll have one year to schedule your final move. However, the sooner you’re able to schedule your final move, the more likely you are to get your desired date.

There are other steps you’ll need to take during your transitional period, which include applying for retirement, applying for VA disability, searching for jobs, and other important tasks. If you’re having trouble figuring out what you need to do, you can reach out to representatives in your branch for help.

3. Take Advantage of Your Benefits

Active duty service members are awarded a wide range of benefits. While you’ll get to keep many of the same benefits, there may be some slight differences. Some of the benefits and their changes after retirement include:

●Tricare: Active duty service members have access to Tricare for their health insurance, but when you’re retiring, you’re at risk of losing your benefits if you don’t enroll by a certain point in your retirement process. You’ll also need to enroll your eligible family members so they can maintain their access to Tricare. Keep in mind that there’s a monthly cost once you retire, which varies based on the plan you select.

●Life Insurance: Your life insurance plan will be uninterrupted 120 days after your official separation from the armed forces. During that period, you’ll want to transition your life insurance to Veterans’ Group Life Insurance. While you’re able to make the switch after 120 days, you’ll need to prove you’re in good health.

●Dental and Vision: You can enroll in dental and vision insurance after your retirement, though you will have to wait until the open season during the fall or a qualifying life event. You’ll have to pay a monthly premium, which will vary based on the plan you choose.

●Commissary and Exchange: After you retire, you and your family will be able to maintain access to the Commissary and Exchange.

●Home Loans: VA loans are available to service members who have retired from the military. VA loans are available to any service member who has served for a minimum of 24 months and has an honorable or general discharge.

●GI Bill: Service members who have an honorable discharge are eligible to receive the GI Bill, though the exact period you’re able to use it will vary based on which GI Bill you have and when you leave the service. Depending on which you have, your GI Bill can be good for 10 to 15 years or indefinitely.

4. Look at Expenses After Retirement

As you’re planning your retirement, you’ll want to look at any expenses you’ll have after you retire so you can adjust your financial planning accordingly. Some costs you should consider include:

●Relocation costs

●Mortgage bills

●Vehicle payments and insurance

●Health care costs

●College expenses for children

●Property taxes

These are just a few examples of expenses you might have post-retirement. Consider these expenses early so you can start saving or adjusting your budget, especially if you don’t plan to work after you retire from the military.

5. Prepare for Civilian Life

One of the most challenging parts of retiring from the military is the adjustment to civilian life. After spending 20 or more years in the service, it can take some time to adjust to the civilian world. You should take some time to prepare so you know what to expect. Some tips for adjusting to civilian life include:

●Searching for jobs: Start your job search early so you can hopefully have one secured by the time you leave the service. You can access resources through TAP to help you build a resume and ace interviews so you’re set up once your official retirement date passes.

●Saying goodbye: You’ve made a lot of friends and close connections in the service. You’ll need to prepare yourself to say goodbye, especially if you’re moving away from your duty station after you retire. While goodbyes can be bittersweet, the age of social media has made it easier than ever to stay in touch with loved ones.

●Joining military communities: If you know you’ll miss the military lifestyle, there are plenty of groups and organizations you can join to connect with others and make your transition into the civilian world easier.

●Future employment: About one year before you retire, you should decide if you want to continue to work since many people who retire from the military have plenty of time for a second career. If you decide you want to keep working, look into the different fields and positions that would interest you. Starting early means you can get help with your resume, interview prep, training, and other things you’ll need to have a successful second career.

Let MLC Help You Prepare for Your Retirement

If you’re moving after your retirement date, you’ll need plenty of luggage to help you move your belongings. After a long history in the military, you’re likely attached to the durability and quality of military tactical gear. Military Luggage Company stocks a wide selection of military bags, packs, and cases that can help you facilitate a seamless move from your duty station to the newest chapter in your life. Shop from our selection of tactical gear to find duffle bags, backpacks, loadout bags, and more that can help you on your next move.