By Teresa Greenhill
Moving into retirement can be a complicated financial time for anyone, but veterans have more considerations than your average civilian. Everything from medical costs to what kind of retirement accounts you may have can be slightly more complicated. Veterans deserve to have a solid understanding of their own financial situation. With the right knowledge, they can take control of their finances and live the peaceful retirement they’ve earned.
Continue Planning Ahead
Your first step when entering retirement should be to assess the ways you can continue looking forward. Many people think of retirement as the last big financial concern they’ll face; however, the simple fact is there are several expenses that may come up down the road. Preparing for them now will keep you and your loved ones from winding up in a tricky financial spot.
For example, you’ll want to ensure that you have money set aside to cover medical costs. Depending on your situation, you may qualify for disability pay and health insurance. Even in these circumstances, medical costs may appear out of the blue. Chronic medical issues such as heart disease or mental health issues may lead to regular expenses you need to plan for.
Another way you can look toward the future as you enter retirement is by considering burial insurance. This type of insurance covers the cost of a funeral and can also potentially cover the costs of end-of-life medical care as well as some debts. Before looking over coverage options, try to consider what kind of funeral you would like to have, as well as whether you also want your coverage to address medical costs. This kind of insurance policy can go a long way toward lessening the financial burden on your loved ones after you’ve passed.
Consider Living Arrangements
Retirement is a good time to take a critical look at your living arrangements. Is your home accessible enough for continued aging? Houses with lots of stairs, slick floors, and other hazards, for instance, can become dangerous for seniors over time. So, it may make sense to consider getting upgrades or renovations done in anticipation of your future needs or to start a savings account for work on your home in the future.
It may also make sense to move to a more accessible or affordable living space. For example, many retirement homes offer the amenities and medical care veterans need to thrive. Other options, such as moving in with family or downsizing to a smaller space, may also make sense depending on your situation. Consider your options, and come up with a plan ahead of time in case you do decide to move at some point.
Re-haul Your Budget
Any big life change is an important time to reevaluate your budget. When you enter retirement, your expenses and income both change at once. This means that the spending you’ve done in the past may no longer make sense. Building a fresh budget allows you to get your head around the financial needs unique to this time of life. Start by tracking all of your sources of income, including military pension, Social Security, disability, and any part-time work you may decide to take on. Then, set this against your required monthly expenses: rent or mortgage payments, bills, and groceries. Organize the remaining income into different categories, and then stick to the spending limits you set for yourself. Disciplined money management will allow you to make the most of a fixed income well into the future.
Retirement, especially as a retired veteran, is an exciting opportunity to spend your time the way you’d like. Taking control of your finances will allow you to make the most of your golden years. As a member of the military, you’ve done the work — now it’s time for your well-deserved rest.
Author: Teresa Greenhill is the co-creator of MentalHealthForSeniors.com, which is dedicated to providing seniors with information on physical and mental fitness so that they can be active and happy in their golden years.
Photo credit: Pexels
