Posts Tagged ‘military retirement’

The military retirement system is possibly the best deal that there is. And rightly so, as these brave men and women are committed to putting their lives on the line in the course of their work, in order to maintain our lifestyle and freedom. It is a lifestyle choice that they make at an early age, so they deserve the rewards.

After 20 years, service personnel are entitled to a pension which is 50% of their pay, and is increased in line with inflation. Each additional year of service adds 2 ½%, so they receive full pay if they serve for 40 years. While this pay is assured if they complete at least 20 years, there is no vesting such as you get with a private company, which means that if they left after 19 years they would not receive any benefits.

There have been some options introduced by the government, and you need a military retirement calculator to be assured of the best choices, but these are the basic guidelines.

In this way, military personnel are not tied to the performance of individual retirement accounts for their income, nor do they have to reach normal retirement age before receiving benefits. It would be easy to think that they would not be concerned about financial retirement planning, but the truth is that retirement savings can be just as important to retired service personnel as they are to the rest of us in giving them the quality of life that they desire.

One of the finest places to go to for an investment education is the Integrated Asset Management website, www.iamllc.biz. There you will find detailed investment education on all financial topics, and can get the help of an investment advisor, such as Ken Himmler (www.kenhimmler.com), who is experienced in all aspects of retirement planning.

Authored by Kenneth Himmler, Sr.