Military Retirement Planning: Beyond the Pension
Don't rely solely on your military pension — build multiple income streams
Your military pension is a great foundation, but smart retirees build multiple income streams. Here's what to consider.
1. Military Pension
Your pension is typically 40-50% of your base pay (depending on High-3 or BRS). It's inflation-adjusted and guaranteed for life.
2. Thrift Savings Plan (TSP)
Your TSP is a critical supplement:
- Traditional TSP: Tax-deferred contributions, taxed at withdrawal
- Roth TSP: After-tax contributions, tax-free growth
- Consider rolling over to an IRA for more investment options
3. VA Disability Compensation
Tax-free income for service-connected disabilities:
- 10% = $175/month
- 50% = $1,102/month
- 100% = $3,606/month
4. Social Security
You can collect Social Security starting at age 62, but waiting until 67 or 70 increases your benefit.
5. Second Career
Many military retirees work second careers:
- Federal employment (buy back military time)
- Contractor positions
- Entrepreneurship
6. Investments
Beyond TSP, consider:
- Taxable brokerage accounts
- Real estate
- Rental properties