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Planning For Retirement: Tips for Military Families

A couple checks their retirement planning accounts and strategy


Planning for retirement is one of the most important financial steps you can take to ensure a secure and comfortable future. As a service member, you have unique retirement benefits and options available to you. Navigating these can be overwhelming, but understanding your choices and making informed decisions can help you achieve your retirement goals.

From taking advantage of military-specific retirement programs to managing debt and utilizing financial tools, there are many resources to help you plan for retirement. Keep reading to learn how to navigate the path to your golden years, worry-free.

1. Understand Your Military Retirement Options

For serving our country, you have access to a variety of retirement account options that can form the foundation of your retirement plan. You may also choose to open retirement accounts that are available to civilians, such as IRAs.

Blended Retirement System (BRS)

The BRS combines a traditional pension with contributions to the Thrift Savings Plan (TSP). Under BRS, you receive a pension after 20 years of service, along with automatic and matching contributions to your TSP.

Thrift Savings Plan (TSP)

The TSP is a retirement savings and investment plan for federal employees and members of the uniformed services. It offers the same types of savings and tax benefits that many private corporations offer their employees under 401(k) plans.

Individual Retirement Accounts (IRAs)

IRAs provide another way to save for retirement. There are two main kinds: Traditional and Roth IRAs. With a Traditional IRA, contributions are made pre-tax, and the returns grow tax-deferred until you withdraw them in retirement. With a Roth IRA, you make contributions after-tax, yet qualified withdrawals are tax-free.

CD IRAs

A CD IRA combines the benefits of a certificate of deposit (CD) with the tax advantages of an IRA. They provide fixed interest rates and are a low-risk investment, making them a great option for conservative investors looking to save capital while earning a modest return.

Money Market IRAs

In money market IRAs, your contributions are invested in low-risk securities, providing a conservative approach to retirement savings. That can make it an appealing choice for individuals who prioritize safety and accessibility over potentially higher returns offered by riskier investments, like stocks.

2. Diversify, Diversify, Diversify Your Investments

Diversifying your investments guarantees that you don’t have all your eggs in one basket, offering a balanced approach to risk and return.

Stocks and Bonds

By including a mix of stocks and bonds in your retirement portfolio, you can help balance your risk and return. Stocks have growth potential, while bonds offer stability and income. Adjust your allocation based on your risk tolerance and timeline.

Mutual Funds and ETFs

Mutual funds and Exchange-Traded Funds (ETFs) let you invest in a diversified portfolio of stocks, bonds, or other assets. They are a convenient approach to accomplish diversification without having to choose individual securities.

Certificates of Deposit (CDs)

CDs are low-risk savings accounts that typically offer higher interest rates than regular savings accounts. These can be an excellent choice for conservative investors who want a secured return on their investment and are willing to tie up their funds for a specified length of time.

Money Market Accounts

Money market accounts provide higher interest rates than traditional savings accounts and are considered safe investments. They offer liquidity and can be a great place to park your cash while earning some interest.

3. Keep A Handle on Your Debt

It’s important to manage your debt to avoid financial strain in retirement.

Pay Off High-Interest Debt

Before focusing solely on retirement savings, it's crucial to manage and pay off high-interest debt, such as credit card balances. Reducing debt improves your financial health and frees up more money to contribute to your retirement accounts.

Think About Your Mortgage

If you have a mortgage, consider strategies for paying it off before retirement. Retiring without having to make a monthly mortgage payment can significantly reduce your expenses and provide financial peace of mind. Be sure to weigh the benefits of keeping a low-interest mortgage versus using those funds for potentially higher-yielding investments.

4. Take Advantages of Financial Calculators

Financial calculators are useful tools that can help you on your financial journey. By making informed decisions, based on calculations, you can stay on track with your financial goals and make the most of your retirement planning efforts.

Retirement Calculators

Calculators for retirement can help you predict how much you need to save for retirement based on your current savings, expected retirement age, and desired lifestyle. They can also help you understand the impact of different savings rates and investment returns.


Take advantage of Armed Forces Bank’s retirement planning calculators, including the Roth IRA Calculator, Roth IRA Conversion Calculator, Regular IRA Calculator, Social Security Benefits Calculator, and the 401k Calculator.

Loan Calculators

If you're dealing with debt, loan calculators can help you grasp the total cost of your loans, including interest, and develop a repayment strategy. They can also assist in comparing the benefits of paying off debt versus investing.


Explore our loan calculators: Current Loan Calculator, Home Equity Credit Calculator, Loan Comparison Calculator, Amortization Schedule Calculator, Debt Consolidation Loan Calculator, Line of Credit Payoff Calculator, and many more.


5. Make Catch-Up Contributions

If you are 50 or older, you can make catch-up contributions to your retirement accounts. This allows you to save more than the standard contribution limits, helping you boost your retirement savings as you move towards retirement age.


For instance, in addition to the annual standard contribution limit for the TSP in 2024 – which is $23,000 – you can contribute an additional $7,500.

6. Create Your Retirement Budget

Creating a retirement budget is important for planning your financial future. Begin by estimating your retirement expenses, including housing, healthcare, travel, and leisure activities.


Then, compare these expenses to your anticipated income from retirement accounts, military pensions, Social Security, and other sources to ensure you can sustain your desired lifestyle.

7. Keep Informed and Stay Flexible

Your retirement plan should be flexible and evolve with changes in your financial situation, goals, and market conditions. Regularly assess your investments, savings progress, and overall retirement strategy to ensure you're on track.


Be ready to make adjustments as needed – whether that's increasing your savings rate, tweaking your investment mix, or revising your retirement budget. Staying adaptable and proactive will help you navigate unexpected changes and keep your retirement goals attainable.

Armed Forces Bank Is Here to Help You Plan for Retirement

Planning for retirement involves careful preparation and informed decision-making. By understanding your military retirement benefits, diversifying your investments, managing debt, utilizing financial calculators, and more, you can create a robust retirement strategy.

At Armed Forces Bank, we offer a range of financial products and services to help you achieve your retirement goals. Whether you're interested in a CD IRA,* Money Market IRA,** or need assistance with financial planning, our team is here to support you.

What else can we help you find?
Money Market IRAs* and CD IRAs**
Premier Money Market Accounts
Certificates of Deposit (CDs)
All Financial Calculators



Member FDIC

*CD IRA

  • Minimum balance of $500 required for opening to obtain the disclosed annual percentage yield.
  • There are penalties for withdrawing funds before set term.
    • 7-91 days: 60 days loss of interest
    • 92-182 days: 182 days loss of interest
    • 183-<60 months: 1 year loss of interest
    • 60 months: 2 years loss of interest
  • Fixed rate of interest is earned on the entire balance.  A penalty may be imposed for early withdrawal. CD rates are subject to change at any time and are not guaranteed until CD is opened. Fees charged to the account could reduce earnings on the account.


**Premier Money Market IRA

  • A minimum deposit of $25 is required to open a premier money market account.
  • Debit cards, ATM cards, or checks are not available because IRS regulations require withdrawals to be properly coded for IRS reporting requirements.
  • A minimum balance fee of $10.00 will be imposed every month or statement period if the balance in the account falls below $1,000 on any day of the month or statement period.
  • You will have view or inquiry only access to Digital Banking. An account statement will be provided monthly. You are limited per the IRS regulation regarding contributions based on age, income, and other factors. Early or premature withdrawals from an IRA may be subject to a 10% early withdrawal tax from the IRS.
  • The interest rate and annual percentage yield may change. At our discretion, we may change the interest rate on the account daily. Interest begins to accrue no later than the business day we receive credit for the deposit of noncash items (for example, checks). Interest will be compounded monthly and will be credited to the account monthly.
  • If you use mobile banking to access your account, message and data rates charged by your mobile carrier may apply.
  • Fees charged to Academy Bank Premier Money Market & CD IRA accounts could reduce the earnings on the account. If the account is closed before accrued interest is credited, you will receive the accrued interest.