Leaving the military is a shift in identity, routine, and purpose. Military retirement planning is about building a life that balances stability, ambition, and the benefits you’ve earned through years of service.
The transition from active duty to civilian life often feels overwhelming. It involves juggling medical exams, administrative requirements, and financial decisions—all while planning for your future career or education. Unlike standard Department of Defense programs, effective planning for military retirement gives you control over the next chapter of your life.
Laying the Foundation for Military Retirement Planning
Military retirement planning starts long before your separation date. Ideally, you should begin preparing 24 months out. However, taking action now is necessary even within the one-year mark.
Your first stop should be the Defense Department Transition Assistance Program (TAP). This program provides a roadmap for separating service members. They focus on employment, benefits, and personal readiness. Through one-on-one counseling sessions, you’ll create a transition plan that outlines everything from your final move to your post-service career goals.
These counseling sessions and the mandatory core TAP curriculum are foundational steps. They help you assess your readiness and identify areas where you need support. For example, your transition plan may highlight the importance of early scheduling your final medical and dental exams. These are required to be done 90 days before separation. Delays in completing these steps can disrupt your timeline and your benefits.
Preparing for Military Retirement
Understanding your financial situation is one of the most important aspects of preparing for military retirement. Military retirement pay varies depending on when you joined, your length of service, and the retirement system you’re enrolled in.
For instance, after 20 years of service, those in the High-3 Retirement System will receive 50% of their average highest three years of basic pay. Meanwhile, members in the Blended Retirement System (BRS) can benefit from monthly retired pay and contributions to the Thrift Savings Plan (TSP).
Start by calculating your monthly retirement income. This should include adjustments for deductions such as federal and state taxes, medical premiums, and Survivor Benefit Plan contributions. Retirement income isn’t the same as active duty pay, therefore, understanding your take-home amount allows you to plan accordingly.
Administrative readiness is just as important. Completing required documents like DD Form 2656 and DD Form 214 guarantees you receive the retirement pay and benefits you’re entitled to. These documents determine your beneficiaries, tax withholdings, and access to military resources post-retirement. Staying organized with deadlines and required paperwork prevents unnecessary delays in your transition.
Medical Exams and Benefits
Final medical and dental exams are mandatory, but their importance goes beyond compliance. These exams document your health at retirement. Scheduling these exams well before the 90-day deadline gives you time to address follow-up appointments or unexpected findings.
TRICARE provides continued coverage for retiring service members and their families. However, you must enroll to maintain eligibility. Dental and vision care options are available through the Federal Employee Dental and Vision Insurance Program (FEDVIP). Missing enrollment deadlines could leave you and your family without coverage during a transition period.
Utilizing the Benefits You’ve Earned
One of the most significant advantages of military retirement is access to benefits that support your next steps. For those pursuing further education or a new career, the GI Bill provides funding for college, technical training, and even certifications. Understanding the eligibility timelines for your specific GI Bill can help you maximize these opportunities.
The Department of Defense also provides funding for one final move. This benefit allows you to relocate anywhere in the United States or return to your home of record if you’re overseas. Planning this move early helps you secure the best dates and logistics for your situation.
Additionally, VA-backed home loans are available to purchase or renovate a home without a down payment or private mortgage insurance. These loans are a powerful resource for service members looking to establish roots after military life.
Your Mission Starts Here
Military retirement is the beginning of a new journey. At Zero Nexxus, we specialize in helping active duty service members prepare for military retirement. Our military transition services simplify the process and set you up for success.
Through one-on-one consultations, a custom client portal, and timely reminders, we help you manage your transition’s physical, mental, and administrative aspects. No matter your goals, we’re here to help you move forward confidently. Explore our packages to get started today.
