Step 1: How to Understand Military Retirement Pay & Benefits
📌 Retirement Pay Basics
✔ If your spouse served at least 20 years, they'll receive lifetime pension payments based on the High-3 or Blended Retirement System (BRS).
✔ High-3 System – Monthly pension = 50% of their highest 3 years of base pay at 20 years of service, increasing by 2.5% per additional year served.
✔ Blended Retirement System (BRS) – Smaller pension (40% at 20 years) plus TSP (Thrift Savings Plan) matching contributions.
✔ Retirement pay is taxable (except in some states).
🛠 What to Do Now:
✅ Check your spouse's retirement pay estimate at MyPay.
✅ Confirm whether you're under High-3 or BRS and adjust savings plans accordingly.
✅ Plan for taxes—some states do not tax military retirement pay, so research before you move.
Step 2: How to Secure Post-Military Healthcare
📌 Your Healthcare Options After Military Life
✔ TRICARE Retired Reserve (TRR) – Available to retired service members under age 60, but premiums apply.
✔ TRICARE Prime / Select – Retired military families can enroll in TRICARE, but annual enrollment fees apply.
✔ VA Healthcare (For Eligible Veterans) – Free or low-cost care for service-connected conditions.
✔ Employer-Sponsored Insurance – If you or your spouse land a civilian job with benefits, compare coverage options.
✔ Medicare + TRICARE for Life (Age 65+) – At 65, retired military members must enroll in Medicare Part B to continue using TRICARE.
🛠 What to Do Now:
✅ Compare TRICARE Retired vs. Civilian Employer Plans.
✅ If applicable, apply for VA healthcare benefits at VA.gov.
✅ At 65, sign up for Medicare Part B to continue TRICARE for Life coverage.
Step 3: How to Plan for Post-Military Income
📌 Replacing Military Pay After Retirement
✔ Civilian Job / Second Career – Many veterans transition into government jobs, private sector roles, or consulting.
✔ Military Spouse Career Planning – If you sacrificed your career for military life, now is the time to focus on YOUR earning potential.
✔ Entrepreneurship & Freelancing – Many veterans and spouses start their own businesses, consult, or monetize skills online.
✔ VA Disability Compensation – If your spouse has service-connected disabilities, they may receive tax-free VA disability payments in addition to retirement pay.
🛠 What to Do Now:
✅ Start networking & updating resumes at least 12-24 months before retirement.
✅ Consider certifications & additional education (MyCAA for spouses, SkillBridge for service members).
✅ Check VA disability eligibility at VA.gov.
Step 4: How to Maximize Your Investments & Retirement Savings
📌 How to Grow Your Wealth Beyond Military Retirement Pay
✔ Thrift Savings Plan (TSP) Rollover – If your spouse has a TSP account, decide whether to roll it over to an IRA or leave it in the TSP.
✔ Roth IRA / 401(k) Contributions – Start investing in tax-advantaged retirement accounts to build wealth.
✔ Spouse Retirement Savings – If your career took a backseat, start contributing to a retirement fund ASAP.
✔ Invest in Passive Income Streams – Rental properties, dividend stocks, and side businesses can provide additional financial security.
🛠 What to Do Now:
✅ Meet with a financial advisor to plan TSP rollovers & investments.
✅ If your spouse has VA disability, invest using tax-free income.
✅ Start contributing to an IRA or 401(k) if you haven't already.
Step 5: How to Plan Housing & Cost of Living Adjustments
📌 Where Will You Live After Military Life?
✔ Will You Buy or Rent? – Do you want to settle near a base, move home, or start fresh somewhere new?
✔ VA Home Loan Benefits – Use VA loan eligibility for no down payment and competitive mortgage rates.
✔ Cost of Living Adjustments – Consider tax-friendly states for military retirees (Texas, Florida, Tennessee, etc.).
✔ Downsizing or Relocating – Many families move to lower-cost areas to maximize retirement pay.
🛠 What to Do Now:
✅ Research best states for military retirees based on tax policies & healthcare access.
✅ Decide if you want to use a VA loan for your home purchase.
✅ If considering downsizing, start planning a timeline now.
Final Thoughts: Own Your Next Chapter
For years, the military dictated your life, your finances, and your future—but now, it's YOUR turn to take control.
✔ Plan ahead so you're not caught off guard by the loss of military pay, housing, and benefits.
✔ Take advantage of every resource available—military retirement pay, VA benefits, TRICARE, and job assistance.
✔ Define your next mission—whether it's a new career, starting a business, or enjoying retirement.
This transition isn't the end—it's a new beginning. With the right financial plan, you can step into post-military life with confidence.
➡️ Join the Conversation! What's your biggest concern about financial planning after military life? Drop a comment below!
🔗 Looking for expert financial advice? Visit MachoSpouse.com!
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