The U.S. military's size fluctuates with the nation's need and defense budget. It's been a fact of life for generations of uniformed members and their families. During times of war, the military grows, but a drawdown of personnel inevitably follows.
Today, this means not all military members who want to retire will be able to remain in uniform long enough to collect a military pension. Indeed, only 17% of all military members serve at least 20 years and become eligible for retirement, according to a 2012 study by the Center for American Progress. Even so, many service members plan on a military pension in their retirement calculations.As the military conducts its current drawdown, it's important to take charge of your own future. A military pension is not guaranteed, even if you aspire to it.
Like Social Security and corporate pension plans, you should only consider military pensions as a potential benefit, one that's by no means guaranteed. The safe play? Rely on your own efforts to fund your financial future.
No matter what happens with military retirement or your future in the military, USAA professionals offer these suggestions for saving during your military career:
We can help you see how much you may have and how much you may need in retirement.
Content courtesy USAA. Used with permission.
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