Top 10 Things to Know for Military Retirement
Joining the military has its advantages, especially when it comes time for retirement. Those in the military enjoy a number of benefits that civilians are simply not entitled to. Going into military retirement, then, it is helpful to know how to plan, what to expect and how to take advantage of your veteran status.
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Retirement Pay
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When you retire from the military, you will be eligible to receive a military retirement pension. You should learn at what pay grade you retired so you can determine how much you will be paid. Remember that you can start collecting this pay as young as 37 years of age.
Job Preference
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Having retired from the military does not mean that you must be retired from work altogether. Many employers prefer ex-military personnel because of their discipline. Some industries even give preference to military veterans. Pay special attention to job applications and any special provisions they make for retired military personnel.
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Types of Benefits
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The military offers four primary types of benefits programs for retired veterans. Aside from pension programs, veterans get low cost health care, education assistance and compensation for disability, when applicable.
Retirement Location Considerations
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Knowing where to live during military retirement is also important. Cost of living is easier to handle in some places than in others. A study sponsored by United Services Automobile Association and military.com shows Waco, Texas, Oklahoma City and Austin as the top three cities for military retirees based on factors such as climate, crime levels, schools, proximity to military bases and VA hospitals and whether military retirement pensions are taxed.
Help for Home-buying
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Retired military personnel are also eligible for home loan guarantees. Knowing which loans you can qualify for can help you gain housing during your retirement years.
Financial Advice Helps
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Aside from knowing that you'll get your pension throughout your retirement years, you should take steps to plan for a comfortable retirement. Consulting a professional financial advisor can help you make sure you know whether you have enough money for retirement.
Tax Issues
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Different military bonuses are taxed in different ways. Familiarizing yourself with applicable tax rules can help you plan your retirement better. For example, you can expect to pay up-front taxes on reenlistment bonuses while utilizing tax shelters for other types of bonuses. Know which bonuses qualify for tax advantages and use these to your advantage.
Networking Helps
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Your life in the military will involve contact with individuals you can network with in your military retirement. If you retire from the military early and use that retirement as an opportunity to start a new career, be prepared to use your contacts to help you get jobs.
SBA Helps Veterans
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Your military experience can also qualify you for a small business loan if you are planning on going into business for yourself during your retirement years. The Small Business Administration provides special provisions for veterans to get business loans.
Counseling Available
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Veterans do not have to go through their retirement years without receiving emotional support. The military offers counseling support for military veterans, including specialized help for Post Traumatic Stress Disorder or PTSD.
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References
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