Veterans’ Guide To Retirement Readiness

November is National Veterans and Military Families Month—a time to honor the courage, sacrifice, and steadfast commitment of those who have protected our nation’s freedoms. As many veterans and service members transition into civilian life and prepare for retirement, a new mission begins: securing their financial future.

Navigating this next chapter requires thoughtful planning and informed decisions to ensure long-term stability and confidence. Whether you're nearing retirement or actively serving, making the most of your savings is key to building a rewarding and comfortable life after service. Here are some essential strategies to help veterans and military families maximize their financial potential.

Stay Informed About Benefits:

Understand eligibility requirements and timing considerations for claiming Social Security benefits. Explore resources provided by the VA, military organizations, and financial advisors specializing in veteran affairs. Continuously assess eligibility for benefits and take advantage of programs designed to support veterans in retirement. Delaying benefits beyond full retirement age can result in higher monthly payments, providing a valuable source of additional income in retirement. Explore Social Security claiming strategies to maximize lifetime benefits.

Explore Healthcare Benefits:

Explore healthcare benefits through the Department of Veterans Affairs (VA) and discover coverage options, including VA healthcare facilities, TRICARE for Life, and Medicare. Research long-term care insurance options and consider setting aside funds for future medical expenses. By leveraging available healthcare benefits effectively, veterans can reduce out-of-pocket expenses and safeguard their retirement savings.

Maximize Retirement Accounts:

Take advantage of retirement savings options such as the Thrift Savings Plan (TSP), Individual Retirement Accounts (IRAs), and employer-sponsored plans. Contribute the maximum allowable amount, especially if eligible for catch-up contributions. Explore investment options within these accounts to align with retirement goals and risk tolerance.

• Thrift Savings Plans (TSPs): The TSP is the federal government’s retirement plan for eligible civilian and military employees, similar to a 401(k). Federal agencies contribute up to 5% of your salary (1% automatic contribution plus up to 4% matching when you contribute at least 5%). Employees may contribute up to $23,500 in 2025 (increasing to $24,500 in 2026) with an additional catch-up contribution of $7,500 in 2025 ($8,000 in 2026) for those age 50 or older. For employees aged 60–63, an enhanced catch-up contribution of $11,250 is available in both 2025 and 2026 — bringing the total elective contribution limits to $34,750 in 2025 and $35,750 in 2026. Participants may contribute to a Traditional or Roth TSP, or split contributions between both accounts.
  • Important Update for 2026: Under the SECURE 2.0 Act, employees earning over $145,000 (indexed annually) in the prior year must make any catch-up contributions as Roth (after-tax) contributions rather than pre-tax. Read more here.
• IRAs: For 2025, individuals including military personnel may contribute up to $7,000 to traditional or Roth IRAs ($7,500 for 2026). Those 50 and older may also contribute an additional $1,000 catch-up contribution for 2025, with the amount increasing to $1,100 for 2026 due to the SECURE 2.0 Act. Roth IRAs offer tax-free withdrawals in retirement, while traditional IRAs may be tax deductible.

Savings Accounts:

Military members have additional methods to save, including the Savings Deposit Program (SDP), military savings accounts offered by banks or credit units, and taxable investment accounts.

• Savings Deposit Program: The SDP is offered to qualified active-duty military members who are serving in an eligible combat zone, as well as members who have been deployed for a period of 30 days or one day within each of 3 consecutive months. Members also must be receiving Hostile Fire Pay. Participants may deposit up to $10,000 in an SDP account and earn a 10% interest rate annually.
• Military Savings Accounts: Savings accounts offered by banks and credit unions include money market accounts, CD accounts, and deposit accounts offered to military members and their families.

Diversify Investments:

Spread investment assets across diverse asset classes such as stocks, bonds, real estate, and other investment vehicles to minimize risk and heighten returns. You may consider a brokerage account to increase diversification. However, be aware that earnings in a taxable brokerage account are subject to capital gains tax. Periodically review and rebalance investment portfolios to ensure alignment you’re your retirement savings goals.

Manage Debt:

Prioritize debt repayment to reduce financial burdens in retirement. Focus on high-interest debts such as credit cards and personal loans, utilizing surplus income and windfalls to accelerate payoff. Avoid accumulating new debt and adopt disciplined spending habits to maintain financial stability.

Plan for Legacy and Estate Planning:

Develop a comprehensive estate plan to protect assets and ensure a smooth transfer of wealth to heirs and beneficiaries. Consult with legal professionals specializing in estate planning to draft wills, trusts, and advance directives. Consider charitable giving strategies to support causes important to veterans and leave a lasting legacy.

Retirement marks a new chapter—one where the discipline, resilience, and foresight that defined military service can now be applied to building a stable and rewarding future. By taking a proactive approach to financial planning, veterans can turn their hard-earned savings into lasting security. With clear goals, informed decisions, and the right resources, the path to a fulfilling retirement is well within reach. Partnering with an Oppenheimer Financial Professional can give you confidence and clarity as you move forward in your retirement journey. Find one in your area today.