Ready or Not…Retirement Is Coming!

As kids, many of us played hide-and-seek. The person who was “it” would cover their eyes, count as fast as possible, and then shout, “Ready or not, here I come!” Ready or not, retirement is coming too.

Even if you’re new to military life, you already know how quickly time moves. One PCS blends into the next. Deployments, shift changes, promotions, babies, goodbyes, homecomings—and suddenly you look up and realize you’re no longer the new person in the unit.

Whether you plan to serve four years or thirty, one truth applies to everyone: retirement is coming, and it will likely arrive sooner than you think.

The good news? You have more tools, benefits, and opportunities than ever before to build a strong financial future. The challenge is simple: you need to start early. Today is the best day to begin.

Why Planning Matters—Even in Year One

• Military life is busy, and it’s easy to think retirement planning is something “future you” will handle someday.  

• Starting now can make a major difference:

  • The earlier you begin saving, the more time your money has to grow.

  • The longer your money grows, the less you may need to save later.

  • The less financial stress you carry, the more freedom you’ll have when your service ends.

• For example, one dollar invested at age 25 growing at 8% annually could become about $21.72 by age 65. That same dollar invested at age 40 would grow to about $6.84 by age 65. Time matters.  Whether you stay for one enlistment or retire as a senior leader, your future self will thank you for taking action now.

If You Make the Military a Career

• Serving 20 or more years can unlock one of the strongest retirement benefits available in any profession, but understanding the current system early is essential.

• The Blended Retirement System (BRS)

  • If you joined after 2018—or chose to opt in—you’re likely covered under the BRS. 

• BRS includes:

  • A military pension

  • Automatic 1% government TSP contribution

  • Up to 5% matching contributions when you contribute

  • Continuation Pay at mid-career

• The key takeaway: if you’re not contributing at least 5% to your TSP, you may be missing free matching money.

The Military Pension

• Under BRS, the pension formula is:

  • 2.0% × years of service × average of your highest 36 months of basic pay

• Serve 20 years and you receive 40% of your high-3 average pay. Serve 30 years and that becomes 60%.  That pension can be an incredible foundation—but for most families, it works best alongside personal savings through TSP and IRAs.

If You Don’t Stay for 20 Years

• Most service members will not retire from the military—and that’s okay.  Under BRS, you can still leave service with something valuable: your TSP account, including government matching contributions that have vested.  That means even one enlistment can help launch long-term retirement savings. Your TSP can continue with you into civilian life and keep growing for decades. 

• The TSP: One of Your Best Benefits

  • The Thrift Savings Plan is known for low costs, which means more of your money stays invested instead of being lost to fees.

  • Why it matters:

    • You can contribute pre-tax through Traditional TSP

    • You can contribute after-tax through Roth TSP

    • You may receive matching contributions under BRS

    • You can invest in simple diversified funds designed for long-term growth

  • For younger service members, Roth TSP can be especially powerful because qualified withdrawals in retirement may be tax-free.

Don’t Forget the Spouse

• Military spouses often face career interruptions due to PCS moves, deployments, childcare demands, and job-market challenges. That can make retirement saving harder—but not impossible.

• Spousal IRAs

  • A non-working or lower-income spouse may still be able to contribute to an IRA if the service member has sufficient earned income.

  • Options include:

    • Traditional IRA for potential tax benefits now

    • Roth IRA for potential tax-free withdrawals later

  • Even modest monthly contributions made consistently over time can grow significantly.

The Real Message: Start Now, Even If It’s Small

• You don’t need to max out every account. You don’t need to understand every investing term. You don’t need to be perfect. You just need to start.

• Ask almost any retiree, and many will tell you the same thing: the years move fast.  Starting with even $50 a month today can make tomorrow easier—and give you more options when the uniform finally comes off.

At the end of the day, military life requires sacrifice, resilience, and adaptability. Retirement planning should not be another burden—it should be a source of confidence.  Whether you serve one term or an entire career, you deserve a future that reflects the commitment you’ve given.

So take one step today:

• Increase your TSP contribution

• Open an IRA

• Talk with your spouse about long-term goals

• Build a plan for life after service

Your future is coming—ready or not, but with a little planning, you can be ready. 

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