This month we celebrate Veterans Day, and people around the country are taking some time to remember the sacrifices that are made by members of the armed services. Though the sacrifices are considerable, there are many rewards that go along with military service. With this in mind let’s look at retirement planning for military veterans.
The military retirement pay system is perhaps the best retirement plan anywhere. You can learn all the specific details by visiting the Veterans Benefits Administration website. However, in general, you earn a retirement pension that you will receive for the rest of your life if you serve for at least 20 years.
If you serve longer, the amount of your retirement pay will increase.
Retirement planning for military service members can involve staying in the military throughout your working years. You retire when you become eligible for Social Security. At that time you would be getting military retirement pay based on a number of decades in the service. This would be supplemented by your monthly Social Security direct deposit.
There is another retirement planning route that can be taken. Because you become eligible for retirement after 20 years of service, you could retire at that time and embark on a career path as a civilian.
You can save all of your military retirement pay for perhaps 20 or more years as you are working in the private sector to pay your way. While you are working, you could participate in the 401(k) plan at work.
When you finally decide to retire, you would be ideally positioned to enjoy your free time without financial constraints.
Veterans Aid and Attendance Special Pension
When you are engaged in your retirement planning efforts you should consider possible future long-term care costs. As a veteran there may be a benefit available to you that can be of great assistance.
There is another type of pension that many veterans qualify for called the Veterans Aid and Attendance Special Pension. This is something that sits apart from the military retirement pension. You don’t have to serve for at least 20 years to qualify for this special pension.
The length of service requirement is just 90 days. At least one of these days must have been served while the United States was engaged in a war.
This pension is intended to provide financial assistance to eligible veterans who need help with their day-to-day needs. Living assistance costs are through the roof, so any type of boost that you can receive as a senior citizen is going to help considerably.
If you meet the length of service requirement and you can prove that you need living assistance, you also have to demonstrate some modicum of financial need. The Veterans Aid and Attendance Special Pension is a need-based program.
In closing,in honor of Veterans Day we would like to express our appreciation to those who have served. It often goes unnoticed, but the work that is done by our military keeps us free to pursue our hopes and dreams.
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Ryan M. DenmanandDennis D. Duffy
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