A Former Navy Service Member’s Guide to Navigating Military Benefits 

The U.S. Department of Defense (DoD) provides uniformed service members with some of the best benefits in the world. But knowing what benefits you have, and how to use them, isn’t always a simple task.  

After five years of serving in the United States Navy leading a submarine warfare and search and rescue team, I’d like to help other military service members – from those who’ve just enlisted to those approaching retirement – with an overview of benefits.  

Each service member will have their unique circumstances and should seek personalized guidance. When working with institutions and providers outside of the DoD, choose specialists well-versed in military systems to help ensure you’re maximizing your eligible benefits according to your specific financial considerations. Below are some resources that offer specialized help. 

Retirement benefits 

The Thrift Savings Plan (TSP) remains a key component for retirement savings, especially under the Blended Retirement System (BRS), which has been in effect since 2018. All service members who joined after January 1, 2018, are automatically enrolled in the BRS, while those who joined before that date could opt in during the 2018 transition period. The TSP works similarly to a 401(k) plan, where participants contribute a portion of their income on a pre-tax or post-tax basis and choose from various investment options. Choosing between pre-tax and post-tax (otherwise known as Roth) contributions should be evaluated in the context of your comprehensive financial plan. Learn more about the benefits of a Roth IRA and factors to consider when comparing pre-tax and post-tax contributions. 

The DoD also provides matching contributions up to a certain percentage. For 2024, the annual contribution limit is $23,000 for those under 50. Participants aged 50 or older in 2024 can also contribute up to $7,500 in additional catch-up contributions if regular contributions for the year are expected to reach the $23,000 limit. For more details, visit www.tsp.gov. 

Pension benefits 

Uniformed service members who meet the minimum threshold for time in service become eligible for pension benefits. The standard threshold remains 20 years of service, though exceptions exist for early retirement, such as the Temporary Early Retirement Authority (TERA) or retirement due to medical reasons. The formulas for calculating pension benefits consider rank/grade, length of service, type of service (active or reserve), and other factors. A wide range of military compensation calculators can be found here. 

Reserve members must ensure their records are accurate and complete. The DoD continually works to improve personnel record-keeping, but members should retain every pay stub and service-related document as a backup. Regular checks (at least annually) of your records are crucial to help ensure all eligible service time is correctly documented.  

Disability benefits 

Navigating disability benefits can be one of the most complex areas, requiring comprehensive medical history documentation throughout your service. Keeping a personal copy of your medical records is vital, especially in case of injuries, whether in combat or otherwise. In March of 2024, a new electronic health record (EHR) was launched to better support the transition from military service to Veteran status. The EHR system – named MHS Genesis – connects all VA medical centers and clinics to the same federal EHR that the DoD, the U.S. Coast Guard (USCG), and the National Oceanic and Atmospheric Administration (NOAA) use.  

For assistance navigating the process, consider consulting organizations like Veterans Guardian or Disabled American Veterans. 

Healthcare 

For active-duty members, healthcare is provided through the military health system and preferred partners. Upon transitioning to reserve status, service members will have more healthcare options, including various Tricare plans. The Tricare Reserve Select (TRS) plan is an affordable option for reservists, with monthly premiums for 2024 set at approximately $48.47 for an individual and $239.69 for a family. It’s essential to compare available Tricare options with civilian health plans to choose the best coverage for your needs. Detailed information on other Tricare plans can be found at www.tricare.mil.  

Homeownership 

VA home loans are a valuable benefit for service members and veterans, offering competitive interest rates, no need for Private Mortgage Insurance (PMI), and no down payment requirements. The VA loan program has expanded its eligibility and loan limits for 2024, accommodating rising home prices in many areas. The VA’s loan guarantee provides favorable conditions, but comparing lenders can help you find the most suitable option. For more information, visit benefits.va.gov/homeloans. 

Property and casualty insurance 

While not specific to service members, property and casualty insurance is crucial for anyone purchasing a home or vehicle. Companies specializing in serving the military community, like USAA or Armed Forces Insurance, often provide unique benefits or a better understanding of military-specific situations.  

Additional resources 

Navigating these benefits can be challenging, so consider contacting Military OneSource, a Defense Department-funded program offering webinars, online training, and tools for assistance with spouse employment, relocation, and more. You may also wish to meet with a CERTIFIED FINANCIAL PLANNER™ professional who is familiar with military benefits to help you form a comprehensive financial plan. For more information, let’s talk.   

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