Retiring from the military comes with a distinct set of decisions that civilian retirement planning doesn't require. Understanding the programs and benefits available to you — and acting on them in the right sequence — can make a meaningful difference in how your retirement takes shape.
The first step for most service members is the Transition Assistance Program, or TAP. TAP provides information, tools, and training to support the transition from active duty to civilian life. Some components are optional; others are mandatory before separation.
Mandatory requirements may include completing an individualized initial counseling session, attending a pre-separation counseling brief, completing a mandatory briefing on transition preparation and your benefits, having a final medical exam, and scheduling your final move. Requirements can vary based on your individual circumstances and branch of service. The TAP website provides branch-specific details.¹
Building a retirement income strategy starts with understanding which military retirement pay system applies to you.
Service members with an entry date before September 8, 1980 receive a defined benefit based on final basic pay — calculated as 2.5% times years of service times final basic pay on the day of retirement.²
Service members with an entry date between September 8, 1980 and July 31, 1986 receive "High-36" — a defined benefit calculated as 2.5% times years of service times the average of the member's highest 36 months of basic pay. This also applies to those with entry dates after July 31, 1986 and before January 1, 2018, who did not choose REDUX or opt into the Blended Retirement System.²
The Blended Retirement System (BRS) applies to service members who entered on or after January 1, 2018, or who opted in during the election window. The BRS combines elements of the legacy defined benefit system with a defined contribution component similar to civilian retirement plans.²
In addition to retirement pay, military families should factor in annual cost-of-living adjustments and any Social Security benefits when building a post-retirement budget.
Medical coverage in retirement is available through TRICARE, but enrollment is not automatic. You must actively enroll yourself and eligible family members within 90 days of separating from active duty — failure to do so may result in a loss of benefits.³
For dental and vision coverage, the Federal Employee Dental and Vision Insurance Program (FEDVIP) is a voluntary option that allows you to choose from several carriers. Costs vary depending on the plan selected.⁴
Military retirement involves a specific set of steps and decisions that benefit from planning ahead. A financial professional familiar with veteran benefits can help you think through the sequencing.
If you have questions about building a retirement strategy as a military family, let's talk.
Sources:
1. DOL.gov, September 29, 2025
2. Defense.gov, September 29, 2025
3. Tricare.mil, September 29, 2025
4. Benefeds.com, September 29, 2025
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Brent Forrest & Associates, LLC. dba Wela Financial Advisory (Wela) is a registered investment adviser. The information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. This article and images may have been enhanced by utilizing artificial intelligence (AI). Wela may discuss and display, charts, graphs, formulas which are not intended to be used by themselves to determine which securities to buy or sell, or when to buy or sell them. Such charts and graphs offer limited information and should not be used on their own to make investment decisions.
