By Kevin Flesch
As a generation of veterans approaches retirement, it is important to understand the wide range of benefits available to them. Whether they served for two years or completed a full military career, veterans have access to various government programs, state-specific benefits, and assistance from veteran organizations. This guide explores the resources available to help ensure a smooth and well-supported transition into retirement.
Government Benefits for Retired Veterans
Veterans who have served honorably can access numerous federal benefits that enhance their quality of life during retirement. These benefits include:
- Veterans Affairs (VA) Benefits: The U.S. Department of Veterans Affairs offers a wide range of services, including healthcare, disability compensation, home loans, and burial benefits (VA.gov).
- Military Pensions: Veterans who have served at least 20 years in the military can receive a pension based on their years of service and rank (Defense Finance and Accounting Service).
- VA Healthcare: Retired veterans are eligible for healthcare services, including preventative care, specialized treatments, and mental health services (VA Health).
- Disability Compensation: Veterans with service-connected disabilities can receive tax-free compensation from the VA (VA Disability).
- Social Security Benefits: Military service may increase Social Security earnings credits, leading to higher retirement benefits (Social Security Administration).
- Thrift Savings Plan (TSP): This government-sponsored retirement savings program offers tax-deferred or Roth savings options for military personnel (TSP.gov).
Most Veteran-Friendly States for Benefits
While federal benefits apply nationwide, many states provide additional benefits to veterans. Some of the most veteran-friendly states include:
- Texas: No state income tax, property tax exemptions, education benefits, and employment assistance (Texas Veterans Commission).
- Florida: No state income tax, discounts on property taxes, veteran-friendly employment programs, and free tuition for dependents (Florida Department of Veterans’ Affairs).
- Alaska: No state income tax, property tax exemptions, and free hunting and fishing licenses for disabled veterans (Alaska Office of Veterans Affairs).
- Virginia: Educational benefits, tax exemptions, and strong veteran employment programs (Virginia Department of Veterans Services).
- South Carolina: Property tax exemptions, education benefits, and tax-free military retirement income (South Carolina Division of Veterans’ Affairs).
Veterans should check with their state’s Department of Veterans Affairs to see what specific benefits are available.
Least Veteran-Friendly States for Benefits
Some states offer fewer benefits for veterans due to higher taxes, fewer exemptions, or limited veteran support programs. Among the least favorable states for veterans are:
- California: High cost of living, state income tax on military retirement pay, and limited property tax exemptions for veterans (California Department of Veterans Affairs).
- Rhode Island: Taxation on military retirement pay and fewer state-level veteran assistance programs (Rhode Island Office of Veterans Services).
- Connecticut: High taxes, expensive living costs, and no exemption on military retirement pay (Connecticut Department of Veterans Affairs).
- Vermont: High property taxes and a lack of military retirement tax exemptions (Vermont Office of Veterans Affairs).
- New York: High taxes and cost of living, and fewer state-level veteran-specific tax benefits (New York State Division of Veterans’ Services).
Veteran Associations and Support Organizations
Numerous organizations provide assistance to retired veterans, including:
- Veterans of Foreign Wars (VFW): Provides advocacy, financial assistance, and community support (VFW.org).
- American Legion: Offers retirement planning resources, employment assistance, and local support networks (Legion.org).
- Disabled American Veterans (DAV): Helps veterans with disability claims, employment, and healthcare access (DAV.org).
- Military Officers Association of America (MOAA): Supports retired officers with financial planning and legislative advocacy (MOAA.org).
- Wounded Warrior Project: Assists injured veterans with health, employment, and wellness programs (WoundedWarriorProject.org).
Benefits for Veteran Family Members
Veteran benefits extend beyond the individual to their family members, including:
- Survivor Benefits: Surviving spouses and children may receive Dependency and Indemnity Compensation (DIC) if the veteran’s death was service-related (VA Survivor Benefits).
- Education Assistance: The Post-9/11 GI Bill allows eligible service members to transfer unused education benefits to their dependents (GI Bill Benefits).
- TRICARE Health Benefits: Dependents of retired military members can continue to receive TRICARE health coverage (TRICARE.mil).
- VA Home Loans: Spouses of deceased veterans may qualify for VA-backed home loans (VA Home Loans).
- Burial and Memorial Benefits: The VA provides burial benefits, including grave markers and interment in national cemeteries for eligible family members (VA Burial Benefits).
Planning for a Secure Retirement by Maximizing Retirement Benefits for Veterans
Veterans planning for retirement should take advantage of available resources and consult financial advisors specializing in military benefits. Utilizing VA services, state-specific programs, and veteran organizations can provide essential support for a comfortable retirement.
For veterans transitioning into this new phase of life, knowledge and preparation are key. By leveraging the available retirement benefits for veterans, they and their families can enjoy a financially stable and well-supported retirement.
We at Millstone Financial Group provide the support veterans deserve. We believe your success relies on the strength of your relationship with your advisor, so it’s our mission to make our clients and their goals our first priority. Our guiding principle is: People first, numbers second. By crafting tailored financial plans based on your individual dreams and struggles, we can help you weather the challenging times while providing you with potential solutions to better reach your financial goals.
If you’re ready to get in touch, schedule a complimentary consultation by calling (732) 385-8544 or emailing kflesch@millstonefinancial.net.net.
Advisory services are offered through Millstone Financial Group Limited Liability Company, a Registered Investment Advisor in the State of New Jersey. Insurance products and services are offered through Millstone Financial Group Limited Liability Company. Millstone Financial Group Limited Liability Company is not affiliated with or endorsed by the Social Security Administration or any other government agency.
All material discussed is for informational purposes only. Opinions expressed are solely those of Millstone Financial Group Limited Liability Company and staff. All topics covered are believed to be from reliable sources; however, Millstone Financial Group Limited Liability Company makes no representations as to its accuracy or completeness. Investing involves risk including the loss of principle.
This article shall in no way be construed as a solicitation to sell securities or investment advisory services to residents of any state other than New Jersey, or where otherwise permitted. All information and ideas should be discussed in detail with your individual adviser prior to implementation.
This material is intended to provide general financial education and is not written or intended as tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
