Frequently asked questions
Short answers to the questions veterans ask most often about retiring from the military. Select a question to read its answer.
General Retirement Planning
1. When should I start preparing to retire from the military?
Begin preparing 18–24 months before retirement to allow time for TAP, VA claims, finances, and career planning.
2. How do I know if I’m eligible to retire?
Active-duty members usually qualify after 20 years. Guard and Reserve members qualify after 20 good years, with pay starting at age 60 or earlier in some cases.
3. What is the difference between retiring and separating?
Retirement includes pension and benefits. Separation does not include retirement pay.
4. How does my retirement date affect my benefits?
Your retirement date affects pay timing, COLA eligibility, VA claims, and healthcare enrollment.
5. What documents should I gather?
DD-214, medical records, service records, marriage and birth certificates.
Pay & Retirement Systems
6. How is military retirement pay calculated?
Based on years of service and retirement system. High-3 generally pays 2.5% per year of service.
7. What’s the difference between High-3 and BRS?
High-3 offers a larger pension. BRS combines a smaller pension with TSP matching.
8. When will I receive my first retirement paycheck?
Usually 30–45 days after retirement.
9. Can I work and still receive retirement pay?
Yes. Civilian employment does not affect military retirement pay.
10. How is military retirement pay taxed?
Federally taxable. State taxation varies.
11. Does my state tax military retirement pay?
Many states exempt it fully or partially.
12. What is COLA?
COLA adjusts retirement pay annually for inflation.
Healthcare & Insurance
13. What healthcare options do I have?
TRICARE Prime or TRICARE Select for most retirees.
14. What is TRICARE Prime vs Select?
Prime has assigned providers. Select offers flexibility with higher costs.
15. When do I qualify for TRICARE For Life?
At age 65 with Medicare Parts A and B.
16. How does Medicare work with TRICARE?
Medicare is primary; TRICARE For Life is secondary.
17. What if I delay healthcare enrollment?
You may face coverage gaps or penalties.
18. Can my family keep TRICARE?
Yes, eligible dependents remain covered.
VA Benefits
19. Should I file a VA claim before retiring?
Yes. Filing through BDD can speed up benefits.
20. VA disability vs retirement pay?
Retirement pay is earned; VA disability is tax-free compensation.
21. Can I receive both?
Yes, through CRDP or CRSC if eligible.
22. What is CRDP?
Allows eligible retirees to receive full retirement and VA disability pay.
23. What is CRSC?
Tax-free compensation for combat-related disabilities.
24. How do I get my medical records?
Request them from your military treatment facility or DoD portals.
Transition & Career Planning
25. What is TAP?
Transition Assistance Program prepares you for civilian life.
26. How do I write a civilian résumé?
Translate military skills into leadership and results.
27. What certifications can I earn?
Many military skills align with civilian certifications.
28. What jobs are common for retirees?
Federal service, contracting, logistics, management.
29. Should I consider federal employment?
Yes. Federal jobs offer stability and benefits.
30. How does veterans’ preference work?
Eligible veterans receive hiring preference.
Education Benefits
31. Can I use the GI Bill after retirement?
Yes, for education, training, or certifications.
32. Can I transfer GI Bill benefits?
Transfers must be completed while on active duty.
33. What education benefits do dependents have?
GI Bill transfers, DEA benefits, and state programs.
34. Are there benefits for second careers?
Yes, many retirees retrain using education benefits.
Financial Planning
35. What happens to my TSP?
You can leave it, roll it over, or withdraw funds.
36. Should I roll over my TSP?
Depends on fees, investments, and goals.
37. How do I build a retirement budget?
Compare income sources to expenses.
38. Common financial mistakes?
Overspending early and ignoring taxes.
39. Should I use a financial advisor?
Yes, especially one familiar with military benefits.
Legal, Family & Lifestyle
40. What is a DD-214?
Proof of service required for benefits.
41. How do I update my information?
Update DFAS, DEERS, and the VA.
42. What happens to my security clearance?
It usually expires unless maintained.
43. Should I update my will?
Yes. Retirement is a major life change.
44. What is SBP?
Survivor Benefit Plan provides income to survivors.
45. Is SBP worth it?
Depends on family financial needs.
46. How does retirement affect family?
It impacts income, healthcare, and routines.
47. What benefits do spouses receive?
Healthcare, education, and employment assistance.
48. How do I choose where to live?
Consider taxes, cost of living, and healthcare.
49. Can I use base privileges?
Yes. Retirees retain base access.
50. What base benefits are available?
Commissary, exchange, gyms, and recreation.
Common Concerns
51. Common retirement mistakes?
Waiting too long and skipping VA claims.
52. How do I avoid gaps in benefits?
Confirm all start dates and enrollments.
53. What if DFAS makes a mistake?
Contact DFAS immediately with documentation.
54. Who can help me after retirement?
VSOs, the VA, DFAS, and retiree offices.
55. Where can I find official resources?
Use official DoD, VA, and DFAS websites.