The opportunities for long-term planning solutions for members of the Armed Forces can be quite exciting.
It is easy to say that everyone should make sure they are not overly reliant on Social Security. However, military veterans who spend at least 20 years in the service have a very clear-cut path to a comfortable retirement.
There are a couple of different routes that you can take. You could serve for forty years and retire with your pension being equal to your full base pay. This solid pension coupled with your Social Security benefit should provide you with a totally adequate ongoing income stream after you retire.
Others choose to retire after 20 years and accept a military pension that is based on a percentage of their base pay. At that point you could start a brand-new career as a civilian and contribute into the 401(k) plan at work for an extended period of time.
If you are conservative financially you can simply save your monthly military pension until you reach the age of Social Security eligibility. You could then retire with both a military pension and your Social Security benefit and have access to your 401(k) savings going forward.
It is important to understand the fact that your spouse would not receive your military pension after you pass away. So, it is advisable to pay into the Survivor Benefit Plan after you retire. You can pay premiums that will result in your surviving spouse receiving a monthly benefit equal to 55% of your military retirement pension if you opt for the maximum level of coverage.
To learn more details about the Survivor Benefit Plan simply take a moment to arrange for a consultation with an Oklahoma City retirement planning lawyer who has a background assisting military service veterans.
- Understanding IRA Inheritance Planning: Key Considerations - September 14, 2023
- Irrevocable Trust Decanting Provides Flexibility - September 12, 2023
- Inheritance Planning Solution for a Spendthrift Heir - September 7, 2023