There comes a time in every servicemember's life when it is time to leave the military. Like any civilian career, retirement is inevitable. This is a time in your life when you should be able to sit back and enjoy the fruits of your labor, and retirement planning can help make the retirement process a little easier.
1. Create a retirement plan
Most successes have one thing in common: good planning. It is never too early to begin making decisions about your financial future. The American Savings Education Counsel reported that individuals who calculated how much they would need in retirement saved five times as much as those who did not. You can either consult a financial planner to assist you with retirement efforts or use your military resources to plan on your own.
2. Take advantage of transitional counseling
The military requires servicemembers to attend pre-separation counseling within 24 months of retirement. This is an excellent opportunity to learn about things like relocation assistance, life insurance, medical insurance and Department of Veterans Affairs benefits. Take this chance to ask the questions you have and get them answered by professionals.
3. Begin saving as early as possible
Most financial experts recommend that you start saving for retirement around the age of 40, if not before. However, it is never too late to start saving. Some emergency funding is better than none, after all. Even if you have no retirement funds set up, begin setting aside funds the moment you decide to leave service.
4. Know how to calculate your retirement pay
Understanding how to calculate your retirement pay is a crucial part of planning. The military has two programs called the Final Pay and High 36 retirement systems. These calculation methods will help you determine how much you will be making in retirement. This knowledge can help with budgeting and other financial planning. Click here to learn more about the calculation methods.
5. Consider a retirement job
Military.com reported that there are two benefits from working during retirement: added financial security and emotional health. Sometimes retirees getting a feeling of being obsolete. However, by maintaining a job in retirement they can continue to feel like a part of society. The added financial benefits of a retirement job can make life a little less stressful.
6. Remain positive
While retirement can be an opportunity to experience new things in life, it can also be a time of a little sadness. You will be leaving behind close military friends, familiarity and a job you probably love. It is important to focus on the positives involved with separation from service.
Retirement is an exciting time when you can take trips, pursue new hobbies and spend time with family. To make this time in your life less stressful, you should begin planning for retirement as soon as possible. Use your military connections to get assistance when you need it, and plan your finances wisely to get the most of your life after service.