Planning for Retirement
Planning for Retirement
For over 20 years we knew the amount of money that would be deposited into our bank account twice a month. One of the scariest parts of my husband retiring from the Air Force was losing that sense of financial security. This was when having a built-up savings account was hugely reassuring! Early on in our marriage we started putting 5% of his paycheck directly into our savings account and we were so thankful we made that decision years before.
It takes a while for everything to shake out, from retirement pay to disability ratings, to where he was going to find another job. Knowing that we had an emergency fund removed a lot of the stress during that time of uncertainty.
MilSpouse Money
Mission Response:
Military retirement can be a daunting experience! There are so many things to manage and decisions to make. It can seem a little overwhelming! Gina and her husband started getting ready years before retirement by building up a solid emergency fund. Financial experts recommend saving up three to six months of living expenses in an easily accessible account, like a money market or savings account. As Gina mentions in her tip, it can take some time to settle into your post-military life. An emergency fund can help you bridge a potential gap in employment and cover any unexpected costs. Retirement is one of the most expensive goals you’ll ever save for so starting early will give you more time to accumulate savings through the power of compound interest and time. Visit Plan to Retire to learn about more ways to save for retirement, including tax-advantaged accounts like the Thrift Savings Plan and Individual Retirement Accounts.
Remember that this time is a transition period for you too! You may have questions on retirement benefits and what life may be like as you transition to the civilian sector. Our Retirement MilLife Milestone has you covered! We go over the importance of starting early, financial planning considerations, and include an extensive list of resources designed to meet your needs as a military spouse. You are not alone in this transition, check out these resources and get started planning today!
