Veterans have some appealing opportunities when it comes to creating a long-term plan for the future. For one thing, individuals who serve for at least 20 years are eligible to receive a retirement pension. In general people who join the service do so when they are young adults. So to provide an example, if you were to join the military at 22 years of age, you could retire and start receiving a pension when you are just 42.
At that point you would have a 20 year resume under your belt with which you could begin a civilian job search. Once you land a position you can contribute into the 401(k) plan at your new job to further prepare for a comfortable retirement. Since you are engaged in a new career your earnings are probably going to be sufficient to meet your expenses on an ongoing basis. So you could invest your military pension for the entire time you are working on the second career.
Let’s say you become eligible for Social Security when you turn 67. If you choose to retire at that time, you would be receiving your Social Security benefit, you would have your 401(k) retirement savings available to you, and you would still be receiving the military pension. Plus you would have the nest egg that had developed by investing your military pension over the 25 years or so that you were working as a civilian.
In addition to this, veterans who need help with their day-to-day needs who have served for at least 90 days with a minimum of one of these days taking place during wartime are eligible for the Veterans Aid and Attendance special pension. So if you ever needed long-term care, this benefit would be of assistance.
If you are a veteran who is interested in mapping out a plan for the future, don’t hesitate to pick up the phone and arrange for a consultation with a legacy planning attorney who has a background successfully counseling veterans.
- Tailoring Estate Distributions: Logical Frameworks for Your Unique Situation - February 19, 2024
- What Is Medicaid Estate Recovery? - February 15, 2024
- Life Insurance in Estate Planning: More Than Just Income Replacement - February 8, 2024