Beyond the Thank You: Veteran Benefits and Planning Opportunities Worth a Second Look in Retirement

You served our country. As you approach retirement, have you reviewed the financial benefits and planning opportunities available to you and your family? 

Veterans Day is the time to recognize the men and women who have served our country and the sacrifices they and their families have made. It is also an opportunity to focus on an important part of the next chapter: preparing financially for retirement. 

Whether you are approaching retirement, already retired, or helping a family member plan for the future, understanding your benefits, tax obligations, and long-term financial needs can help you make informed decisions and protect the people who matter most. 

Are You Taking Advantage of the Benefits Available to You? 

The Department of Veterans Affairs (VA) offers programs that may help eligible veterans and their families strengthen their financial well-being, including: 

• VA disability compensation: Tax-free payments for eligible veterans with service-connected disabilities.[1] 

• VA pension benefits: Needs-based benefits for qualifying wartime veterans who meet applicable service, income, and other eligibility requirements.[2] 

• Aid and Attendance or Household Benefits: Additional pension payments for eligible veterans and survivors who meet specific care-related requirements. Please note that you cannot receive both benefits concurrently. [2] 

• VA Health care, Medicare, and TRICARE for Life: In addition to your VA healthcare benefits, upon turning 65, TRICARE for Life or Medicare can be coordinated to cover deductibles, copays, and costs for non-VA care, subject to specific eligibility requirements. [3] 

Even if you have received benefits for years, reviewing your circumstances may reveal resources worth exploring. Learn more at VA.gov. 

Make the Most of Your Retirement Income 

Retirement income may include military retirement pay, Social Security, investments, and VA benefits. Each source can receive different tax treatment, affecting how much income you have available to spend. 

VA disability compensation is generally excluded from federal taxable income, while military retirement pay is generally subject to federal income tax. State tax treatment varies, and Social Security benefits may also be taxable depending on your circumstances.[4] 

Coordinating retirement account withdrawals, investment income, and other sources of cash flow can help you manage your tax obligations and make the most of your retirement resources. A comprehensive retirement income strategy considers not just how much you have saved, but how those assets and benefits work together. 

Would Your Spouse Be Financially Prepared? 

Planning for a surviving spouse is one of the most important steps a family can take. After the loss of a spouse, household income may decrease even as many expenses remain. 

Veterans and their families should review potential Social Security survivor benefits, the Department of Defense Survivor Benefit Plan (SBP), and VA programs such as Dependency and Indemnity Compensation (DIC) or the Survivors Pension, where eligible.[5][6] 

Consider whether your spouse would have sufficient income to cover everyday expenses, health care, and other financial needs. Reviewing these questions together can help identify potential gaps and provide greater peace of mind. 

Is Your Estate Plan Up to Date? 

Estate planning helps ensure your wishes are documented and your loved ones understand how important decisions should be handled. Consider reviewing your will, beneficiary designations, powers of attorney, and health care directives. Depending on your circumstances, trusts and other estate planning strategies may also be appropriate. 

Veterans may also qualify for VA burial and memorial benefits, including burial in a VA national cemetery and certain memorial items. Burial allowances may be available to eligible families to help cover qualifying expenses.[7] Understanding these resources in advance can help families prepare and know where to turn when the time comes. 

An up-to-date estate plan can reduce uncertainty and help protect the people and legacy you have worked hard to build. 

Put the Pieces Together for a More Confident Retirement 

I served in the Navy, so I know what the service asks of you. I also know how easy it is to put your own future last. Your service, savings, retirement benefits, and investments all play a role in your financial future. The key is understanding how they work together. 

A comprehensive retirement review can help you evaluate expected income, living expenses, taxes, health care costs, and plans for your family. It can also help identify benefits you may qualify for and areas where additional planning may be worthwhile.

Footnotes and Sources

[1] U.S. Department of Veterans Affairs. “Compensation Service.” Information on VA disability compensation and its tax-free status.
https://department.va.gov/vba/compensation-service/ 

[2] U.S. Department of Veterans Affairs. “Pension.” Information on VA pension eligibility and additional pension benefits, including Aid and Attendance.
https://www.va.gov/pension/ 

For Aid and Attendance benefits and Housebound allowance, see the U.S. Department of Veterans Affairs:
https://www.va.gov/family-and-caregiver-benefits/survivor-compensation/ 

[3] U.S. Department of Veteran Affairs. “Veterans turning 65: VA healthcare, Medicare, and TRICARE for Life” https://www.va.gov/resources/veterans-turning-65-va-healthcare-medicare-and-tricare-for-life/ 

[4] Internal Revenue Service. Publication 17, Your Federal Income Tax. Guidance on the federal tax treatment of veterans’ benefits and retirement income.
https://www.irs.gov/publications/p17 

[5] Social Security Administration. “Survivor Benefits.” Information on eligibility for Social Security benefits for qualifying surviving family members.
https://www.ssa.gov/survivor 

[6] U.S. Department of Defense, Military Compensation. “Survivor Benefit Plan Overview.” Information on survivor income protection for eligible military retirees and their dependents.
https://militarypay.defense.gov/Benefits/Survivor-Benefit-Plan/Overview/ 

For VA survivor benefits, including DIC and the Survivors Pension, see the U.S. Department of Veterans Affairs:
https://www.va.gov/family-and-caregiver-benefits/survivor-compensation/ 

[7] U.S. Department of Veterans Affairs, National Cemetery Administration. “Burial and Memorial Benefits.” Information on national cemetery burial, memorial benefits, and potential burial allowances.
https://www.cem.va.gov/burial-memorial-benefits/