TrendingWhat To Do After Military Retirement

What To Do After Military Retirement

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TOP 5 Things Us Military Guys Do After Retirement

Leaving the military means making a lot of decisions big decisions often in a short period of time. One important decision, thankfully, doesnt have a time limit: What should you do with the balance in your Thrift Savings Plan account?

Several myths and rumors surround the answer to that question, with plenty of salesmen wanting you to believe that you should move your money out of the TSP. Five clear options exist for service members and their TSP account assets after transitioning from the military. Even though theres no single answer for everyone, three choices are more optimal for most people, and two choices are less right for most people.

The usually-better options include:

  • Leave the money in your TSP account.
  • Roll your TSP account balance into an Individual Retirement Arrangement.
  • Roll your TSP account balance into your new employers 401 plan.
  • The rarely-better options include:

  • Withdraw your TSP account balance in a lump sum.
  • Transfer your TSP account balance to a qualified annuity.
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    Reimagining Military Retirement: Think Outside The Box

    When deciding what to do after military retirement, think beyond a second career. Working full time for the next 25+ years is not your only option. The following stories of your fellow retirees experiences will show you that there are alternatives!

    Whether military retirement is on the horizon, youve recently transitioned, or youve been retired for many years, now is the time to think about how and when you will do the things youve always dreamed about doing. The things you were too busy to do while in the military. Waiting until youre 65, until the kids are grown, until the grandkids are in school, or any other arbitrary milestone could be too late.

    Now is the time to reimagine life after the military.

    Its nearly automatic for retiring service members to plan for a second career immediately after transitioning to civilian life, but heres a newsflash: its not your only option!

    Like many of you, my husband received civilian job offers prior to his retirement from the Army in 2015. Fortunately, we chose to take a gap year to reconnect after all the years of deployments, late nights at the office, temporary duty, and the stress of military life.

    Taking that year off to pause and think about what we wanted to do with the next phase of our lives led us to a completely different mindset. Now, more than 6 years later, we are living on the coast of Spain, and you can read the details of how our journey evolved below.

    Contents

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    How Do I Report A Death Of A Pensioner

    Write to the Pension Disbursing Authority i.e, the pension paying bank intimating them of the demise of the pensioner, asking them to discontinue the pension of the pensioner and commence payment of the family pension of the spouse / NoK / Heir, enclose an ink signed death certificate and copy of the original PPO

    Education And Certifications Matterperiod

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    The temptation when looking at a job description that requires experience or a degree is to apply anyway. This is the same as playing the lottery, with even worse odds.

    In the first hour of posting a job, a company can receive as many as 200 resumes. Chances are at least 10% of these applicants have both the experience and the degree required. And employers will generally choose one of these candidates. A full-time job seeker only has 8 hours each day to conduct their job search, so dont waste your precious time applying for positions for which youre not a competitor.

    When someone says Im qualified XXXX in the military why arent employers willing to recognize it? I generally ask, If I had a civilian qualification, would I still have to do the military qualification if I wanted to do the exact same job in the military?

    Sound a bit harsh? Well, another analogy is to ask yourself: If you were going before a military promotion board and a special qualification was the norm, what would be your chances of getting past the initial screener? The same rules apply in the civilian labor market, especially when youre navigating it on your own.

    I generally suggest you maximize your job search by applying for jobs for which youre a 95% or better fit, simply because of the odds involved. Its better to scan 100 jobs and find the 10 youre most likely to get than to stop at 10 and have zero probability of being called in for an interview.

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    Calculating Your Provisional Income

    The basic calculation to figure out what portion of your Social Security income is taxable isnt difficult, but first you have to figure out your provisional income. Aside from filing status, the biggest factor in figuring out Social Security benefit taxes is your income level outside of Social Security benefits.

    Provisional income is defined as your adjusted gross income plus nontaxable interest. Nontaxable interest is interest income that is tax-exempt but you would still report on your federal tax returns. Your provisional income includes pensions, wages, interest, dividends and capital gains.

    For example, assume your adjusted gross income is $12,000, you are paid $5,000 in nontaxable interest, and you receive $20,000 in Social Security benefits. By halving your Social Security income and combining those values, you would calculate that your provisional income is $27,000 .

    Translate Your Military Credentials Into Civilian Speak

    Hudson says, It is not just a job change but also a major culture change. Learn the civilian or corporate equivalent language for your military acronyms, jargon, ranks service.

    Most industry professionals dont know, for instance, that a Military Occupational Specialty is an area of expertise. They may not grasp the difference between a captain in the Army and a captain in the Navy .

    Believe it or not, there are websites that can translate the language of your former world into things civilians can understand. These sites include O*Net Resources Center and Military to Federal Jobs Crosswalk. Your old role as a deputy commander, for example, might be rendered as equivalent to executive vice president, special projects for a large company.

    Use this civilian language without fail on your and other social media profiles. And, of course, in interviews.

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    Benefits Youve Earned As A Retiring Service Member

    As an active-duty service member, you receive a number of benefits. What happens to them when you retire?

    TRICARE: Retiring service members must enroll themselves and eligible family members or risk losing TRICARE benefits. This includes family members with Medicare Part A and B. For more information on health care plan options for retiring service members and families, visit the TRICARE website.

    Dental and/or Vision: You may choose to enroll in dental and/or vision insurance through the Federal Employee Dental and Vision Insurance Program. You can enroll during the annual open season each fall or whenever you have a qualifying life event. Dental and vision plans have a monthly premium based on the plan you choose. Find more details at the Benefeds website.

    Final move: You have one calendar year from your retirement date to use your last government-paid move anywhere within the U.S. or to your home of record outside the country. Check with your installations Personnel Support Office for information.

    Commissary and exchange privileges: You and your family have the same access to both facilities after retirement. The only exception overseas privileges may be subject to a Status of Forces Agreement.

    Home loans: Find out about a VA loan to purchase or build your dream retirement home. To qualify, you must have served at least 24 months and have an honorable or general discharge. Call 800-827-1000 or visit the VA housing assistance webpage.

    Consider The Costs Of Healthcare And Be On Top Of Your Health While In The Military

    MILITARY RETIREMENT | How Much Do You Make

    For all retirees, military or not, healthcare costs are a big part of deciding how much money you’ll need for retirement. With healthcare costs only rising in the US, it’s likely that it could cost more than you think.

    It’s something that Patton said he’d tell himself if he could turn back the clock.

    “Take into consideration all your other benefits. You can still use military treatment facilities and hospitals for your family, and things like that. But if you don’t locate near a military installation, there are copays and things to consider as well,” he said. “There will be some additional costs that you’ll have when you retire.”

    For anyone currently in the military, Patton recommends taking your health and any injuries seriously, as they could affect the amount you’ll receive in retirement.

    “Document your medical stuff, it’s extremely important. When you retire and you go through your retirement physical, if you can’t prove something, you won’t get compensated for it,” he said. “It’s extremely important that when you get injured, go in and at least get it documented. That will help you in the long run.”

    The VA told Insider that it will “make reasonable efforts to obtain” documentation for the veteran if they don’t have access to the needed paperwork. Ultimately, however, documentation is required to make a successful claim.

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    General Lifestyle Goals For Military Retirement

    As a military family, youve had the chance to live in at least a few different places, so theres a good chance you know what climate you like by now. When determining your post-retirement resident state, make sure youre picking an area of the country you either loved living or have always wanted to live. If being close to family post-PCS life is important for you, chart out driving distances or flight costs, too.

    Cost of living can factor into the equation, too. How affordable are housing, childcare, groceries, and utilities in your chosen city?

    Save For The Gap Between Your Duty Pay And Your Retirement Pay

    Patton said that saving for your life after the military is critical, and there’s one period when it’s especially important.

    “When you retire, be prepared: Have at least six months’ income saved up. When you retire, it pays retroactive of course. But you can go four to six weeks without getting your first military retirement paycheck based on when you retire,” he said. “That can be a shock to the system if you’re not prepared.”

    Saving up several months’ worth of expenses in an emergency fund, or a savings account that’s dedicated to unexpected expenses, is always a smart idea. This is one point in your life where it’s likely to be used.

    Patton said there’s another gap anyone retiring from the military should consider: Your retirement pay likely won’t be the same as your active pay.

    “Any other additional pay or incentive pays that you might’ve been drawing, those go away. So each month, if you’re on active duty, you get a basic allowance for housing, which helps pay for your housing. You get a basic allowance for subsistence, some people get foreign language pay or hazardous duty pay, etc. All that stops,” he said. “You’re only getting your base pay for retirement.”

    Saving for this gap will be important while working after retirement might help to cover some of those costs, having your own cushion will be critical.

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    Take Advantage Of Local Veterans Resources

    Pursue local resources that are aimed at helping veterans succeed. American Corporate Partners is just one of many resources for you to consider. ACP eases the transition from military to civilian life through its mentorship program, including workshops tailored to the needs of spouses.

    Each state also has its own State Department of Veteran Affairs that sponsors local job fairs, workshops and other networking events. Check out your local chamber of commerce to connect with veterans programs that may be unique to your area.

    but hes also learned many lessons along the way. Four years out from retirement, Nadig says hes proud of the life he and his wife have created for their family.

    Looking back, Nadig says he wishes he would have started retirement preparations earlier, and he recommends you do too. Its important to invest time into resume building and networking during your final year, but dont take on such a myopic view that you lose sight of valuable time as a family. Take this time to communicate with your children about the transition, and make a point to attend more family events.

    As the months flew by, feelings of anxiety, frustration and rejection started to creep in after getting rejected from multiple job opportunities. To add to the stress, Nadig and his family were set to relocate to Oklahoma by late summer, but without a definitive job offer and a clear path forward.

    Resources

    Chapter 5

    Assimilation Checklist

    Sales Tax And Property Tax

    Military Retirement Party Invitation with Optional After ...

    While most people turn first to state income tax as the primary factor for determining where to live in retirement, sometimes the sales and property tax landscape could offset any savings on the state income tax side. Certain states will exempt food or medications from sales tax, others have no sales tax, and others will apply sales tax to everything.

    Just as cities can also assess sales taxes on their own, property taxes can vary a lot from one state and town to another.

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    Take Advantage Of Government Programs

    The U.S. Department of Veterans Affairs Transition Assistance Program should be your last stop in uniform. It offers a range of workshops that help you explore your skills and job interests, write a résumé and understand what civilian employers are looking for.

    The department also offers a variety of other career and employment assistance programs with an assortment of online tools to help you manage your career trajectory.

    Three optional workshops Career Technical Training Track, Education Track and Entrepreneurship Track are also available. Service members can elect to attend one, two or all three.

    Contact The Casualty Assistance Office

    The casualty assistance office is in charge of taking requests as well as scheduling military funeral honors for the veteran who died. Funeral honors details will perform military rites for veterans, retirees and current service members of the Army, Navy, Marine Corps, Air Force and Coast Guard.

    to find your local casualty assistance office.

    The Casualty Assistance Office will require a copy of the completed DD Form 214.

    In addition to funeral honors, the casualty assistance office may be able to help the family cope with the loss of their veteran, understand their entitlements and apply for various benefits.

    Most often, funeral directors request a local veteran organization to provide funeral honors, but if specific arrangements are requested, talk to your Casualty Assistance Office about these requests.

    The Casualty Assistance Office will need the following information in order to assist you:

    • Full name, rank and social security number of the deceased service member
    • Branch of service and component
    • Date and place of death
    • Circumstances of death
    • Name, address and phone number of the funeral home that is handling the details
    • Location, date and time of the memorial service at which the military honors are needed dont stress if you dont have this information yet, youll still want to call to give them the information mentioned above and call back with these details once you know.

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    In The Years Following Military Retirement

    Keep DEERS updated whenever you have a life change, including marriage, divorce, birth of a child, child marrying or aging out of military dependency, moves, becoming eligible for Medicare, or death of the sponsor a family member.

    Dependent children may remain on your Tricare coverage until age 21, or age 23 if they are a full-time student and you provide the necessary documentation to the DEERS office. Once they age off Tricare, they may continue coverage by purchasing Tricare Young Adult coverage.

    If you receive extra VA disability compensation because you have children, you will need to provide the appropriate documentation once they turn 18. You can continue to receive extra benefits for them until they turn 23 as long as they are in school full-time. This extra benefit applies if your VA disability rating is 30% or more. However, keep in mind that you generally cant receive extra payments for your children and have them also receive VA education benefits. Make sure thats all sorted out correctly each year.

    Keep DFAS informed of changes to your address, phone number and email address. Notify DFAS if you have a life change such as a marriage, divorce, birth of children, or deaths. This includes contact information for your beneficiaries, such as for Arrears of Pay or Survivor Benefit Plan.

    At some point, you or your spouse may need hearing aids. If youre not eligible to have them covered by the VA, look into the Retiree At-Cost Hearing Aid program.

    Start Saving Before You Leave

    Where to retire after your Military Career

    The first step of any financial foundation is building a savings account.

    If service members start socking away money before they leave the military, they’ll have a nice cushion during their transition period, Sweet said.

    If it isn’t something you have already started, at least begin about six months to a year before you are discharged.

    “Having cash in the bank gives you options to move to a different city, maybe take a pause and pursue a new degree or new training opportunity or wait for the right role open to open up,” he said.

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