Retirement is a major life milestone that requires careful planning and budgeting. For military families, it comes with unique considerations, especially when it comes to taking full advantage of the benefits available through military service. In honor of National Veteran and Military Family Month this November, we’re highlighting key information military families should know when approaching retirement and transitioning to civilian life.
Transition Assistance Program (TAP)
One of the first steps in preparing for retirement from the military is the Transition Assistance Program (TAP). TAP provides information, tools, and training designed to make your transition smoother. While some resources are optional, certain requirements are mandatory before leaving the military. These may include:
An individualized initial counseling session
A pre-separation counseling brief
A mandatory briefing on transition preparation and benefits
A final medical exam
Scheduling your final move
Each branch of the military may have specific requirements, so it’s important to review the details for your situation. More information can be found on the TAP website.
Planning Post-Retirement Income
A solid retirement strategy starts with understanding your income sources and creating a budget that ensures financial stability throughout retirement. Military retirement pay varies depending on your entry date and chosen retirement system:
Pre-September 8, 1980: Final basic pay, calculated as 2.5% × years of service × final basic pay.
September 8, 1980 – July 31, 1986: “High-36,” based on the average of your highest 36 months of basic pay.
After July 31, 1986: Options include High-36, REDUX, or the Blended Retirement System, which combines traditional military retirement benefits with features similar to civilian retirement plans.
In addition to these options, military families should account for annual cost-of-living adjustments and potential Social Security benefits when creating a post-retirement budget.
Insurance Considerations
Healthcare planning is another critical component of retirement. Veterans and their families have access to a variety of insurance programs, but enrollment is key:
TRICARE: Provides medical coverage for veterans and eligible family members. Enrollment must be completed within 90 days of retirement from active duty to avoid losing benefits.
Dental and Vision: Available through the Federal Employee Dental and Vision Insurance Program (FEDVIP), which offers a variety of plans with costs depending on your selections.
Building a Personalized Retirement Strategy
As we honor the service and sacrifices of our military members during National Veteran and Military Family Month, we want to help make your retirement as smooth as possible. By understanding your benefits and creating a tailored plan, you can confidently step into civilian life while protecting your financial future. Working with a financial professional can help you navigate your options and develop a strategy that meets your family’s needs. Let’s make sure your retirement is secure, well-planned, and stress-free.
References:
DOL.gov, September 29, 2025
Defense.gov, September 29, 2025
Tricare.mil, September 29, 2025
Benefeds.com, September 29, 2025