By Jaimi Erickson
Contributing Writer
We walked through the front door of our forever home and the relief we felt was immediate. A roof overhead meant we were no longer living in our RV with four kids, a Saint Bernard, and a guinea pig. For two-and-a-half months of the summer, the crowded RV was our home of record. Finding and buying a home had felt like an uphill journey, and the RV was where we had (temporarily) landed.
Our retirement story started in November last year. My husband was notified that he was going to have to retire from the Marine Corps. We were given his retirement date and six months to make our transition from active duty to retired status. After a couple of years of not knowing when my husband was going to retire, the Marine Corps made the decision for us. We had to start planning in a hurry.
Be forewarned: Once you have a retirement date, getting approved for a home loan is almost impossible. There is a waiting period to begin receiving retirement pension and VA disability. We had to wait to get pre-approved for a mortgage from the time my husband went on terminal leave in April until his first retired paycheck cleared the first week of June.
My husband’s income was being cut in half and his job search was taking longer than expected. To deal with this, the plan was to camp in our RV for the summer and live on a budget.
Looking back, there is so much we could have done earlier if we’d had a head start to prepare for retirement. I will share with you what I wish someone had shared with my husband and me years before he had an official retirement date.
What I Wish I Had Known Prior to Military Retirement
Get the Best Military Retirement Checklist
The AAFMAA retirement transition checklist is an essential road map for navigating this time of transition out of military life. It’s the best retirement checklist out there, because it’s simple to follow, gives you a timeline to work with starting three years prior to your separation from service, and it details items you need to be thinking about — from financial planning to life insurance to housing. It is comprehensive without being overwhelming.
AAFMAA’s checklist helped my husband feel less overwhelmed with the retirement process. Prior to getting it, we were creating our own version of a checklist, but it was difficult and chaotic to get all the information we needed. AAFMAA’s checklist gave us the grounding and focus that we needed to move forward with our decision-making and planning.
Reduce Household Expenses — (at Least) 1 Year Out
We had six months’ notice that my husband would have to retire. The previous year, I started reducing how often we got takeout, waiting to restock the fridge until it was almost empty to avoid food waste, and actively investing in the stock market. Using a no-fee brokerage account, as my stocks and funds had earnings, I sold off a share here or there to preserve gains and bulk up our savings. If you do not have extra income to invest from your salary, use tax return money or a second income as your investment money.
One tip that helped our family was to live off of the active-duty member’s income and save as much of our family’s secondary income as possible. We did this for years when I first started blogging part time and earning an income. It was just extra money I could put in our savings account and use to invest in stocks. It was a big reason why we had a nice nest egg during the month that active-duty pay ended and retirement pay started.
Attend the Spouse Seminar — 2 or More Years Out
As a spouse it is helpful to be proactive. This helps you and your servicemember get the important information you need and begin to plan.
You should attend your branch’s spouse seminar two to four years out from when your spouse will be eligible to retire. The information shared at STARS (the Marine Corps retirement seminar for spouses) and MilSpouse Transition (a course designed by a retired military spouse) is essential to know when you’re years out from military retirement.
The best part of these spouse seminars is that you can attend them whenever you want since there is no restriction or timeline involved. On the other hand, your servicemember does have a specific window in which they can attend the retirement course — they can’t take it whenever they want, so they’ll need to be able to plan their schedules to accommodate it.
Sell Unwanted Items While You’re Still Near a Military Base
It is easier to sell things on or near military bases. If you are going to clean out closets and sell furniture before your final retirement PCS move, do it while you are near a base.
In my experience, selling used items on Facebook marketplace is also more successful when you live near a military community. Now, as a retired family, it is harder to sell items that we no longer need. Even living near a bigger city than our last duty station is not as lucrative for reselling items as being near a base.
So, if you are ready to declutter and sell items, think about doing it before you move away.
Plan to Get Life Insurance Before the VA Disability Process Begins
Another part of your finances that gets more complicated in retirement is life insurance. My husband never needed more life insurance than his SGLI he was paying into while on active duty. Then, as he was entering his final months on active duty, I asked him to look into life insurance policies for retirement, and he found that the rates were very high because he had already started his VA Disability medical appointments.
When it comes to life insurance, VGLI provides a safeguard when a servicemember retires. To find the best rate for your family’s needs, start shopping for life insurance before the VA appointments are made. Here is another opportunity for AAFMAA to assist members of the military with a Level Term I life insurance policy that supplements SGLI while you’re still in service and continues when you leave it, allowing you the option to convert it to a whole life policy in the future.
The Road Map During Retirement Transition
Be patient with the process during your transition to retirement because eventually it will all work out.
I hope these tips will help you and your servicemember look forward to the next chapter in retirement with joy rather than fear. It really is sweet to walk through my front door now knowing we handled the challenge of preparing for retirement and can enjoy the next chapter of life beyond the military.
About Jaimi Erickson
Jaimi is a mom of 4, military wife, and writer. She blogs about motherhood, kids activities and homemaking tips at The Stay-at-Home Mom Survival Guide. Connect with her on Instagram, Facebook or Pinterest.
