Planning for Retirement as a Military Family

Retirement is one of life’s biggest milestones, requiring thoughtful strategy and budgeting. For military families, planning comes with additional layers of consideration — especially when it comes to qualifying for and maximizing veteran benefits.

In honor of National Veteran and Military Families Month this November, let’s explore key steps military families should take when preparing for retirement and transitioning to civilian life.

1. Transition Assistance Program (TAP)

When you retire from the military, your first step is likely the Transition Assistance Program (TAP). TAP provides resources, training, and guidance to help make your move to civilian life as smooth as possible.

Some requirements are mandatory before leaving service, including:

• An individualized counseling session

• A pre-separation counseling brief

• A transition preparation and benefits briefing

• A final medical exam

• Scheduling your final move

Requirements vary by branch, so it’s best to review the latest information on the TAP website.¹

2. Post-Retirement Income

A strong retirement plan starts with a reliable income strategy. Understanding your potential income sources will help you create a sustainable budget.

Military retirement pay depends on your service entry date:

• Before Sept. 8, 1980: “Final Pay” system — 2.5% × years of service × final basic pay.²

• Between Sept. 8, 1980 – July 31, 1986: “High-36” system — 2.5% × years of service × average of highest 36 months of pay.²

• After July 31, 1986: May qualify for High-36, REDUX, or the Blended Retirement System (BRS), which combines traditional military and civilian-style benefits.²

When building your post-retirement budget, also consider annual pay adjustments and Social Security benefits.

3. Insurance and Healthcare

Healthcare remains a top priority in retirement. Most veterans and their families are eligible for TRICARE, which provides medical coverage after active duty. Be sure to enroll within 90 days of retirement to avoid losing coverage.³

You may also need to enroll separately in dental and vision coverage through the Federal Employee Dental and Vision Insurance Program (FEDVIP), which offers a range of plan options.⁴

As we celebrate National Veteran and Military Families Month, we honor the service and sacrifices of our military members. If you’re nearing retirement, now is a great time to review your benefits and create a personalized retirement strategy. Together, we can help you transition confidently into the next chapter of life.

<sup>1. DOL.gov, September 29, 2025
2. Defense.gov, September 29, 2025
3. Tricare.mil, September 29, 2025
4. Benefeds.com, September 29, 2025</sup>