Veterans who served during times of war put everything on the line to serve the interests of our country. It is really not possible to reward them adequately, and their families make sacrifices right along with them.
This being stated, there are some valuable benefits that can help veterans during their senior years. One of them is the retirement pension that service members become eligible for after 20 years of service.
If you decide to make a long-term commitment to the military, you can stay in until you qualify for Social Security. You would then get a very nice pension payout along with your Social Security benefit each month.
There is another option that many people choose instead, and we will explain it through the use of a simple example. Let’s say you join the military when you are 18. You could serve for 20 years and retire as soon as you qualify for a minimal retirement pension. At that point, you would be just 38 years old with a solid 20 year resume.
After you leave the military, you could embark on a career in the private sector while you are drawing a pension check. You could potentially save your pension while you live on your salary and contribute into the 401(k) plan at work.
By the time you become eligible for Social Security, you would be in a fantastic position. You would have a nice nest egg in the form of the 401(k), and you would have two different sources of ongoing income for the rest of your life.
Wartime Veterans Pension
Most people are aware of the existence of the military pension for long-term members, but there is another retirement pension that flies under the radar. If you have served for at least 90 days prior to 1980, with a minimum of one of the days taking place when the country was at war, you meet the length of service requirement.
It is also available to veterans that joined the military after 1979 that served for at least 24 months with some wartime experience.
This Retirement Pension is available to veterans that are permanently and totally disabled, and even if you do not fit this description, you can qualify if you are 65 years of age or older. It is intended for people with a significant level of financial need, so there are income and asset limits.
There was no etched in stone asset limit prior to 2018, but at that time, the rules were changed. During the current calendar year, there is a hard limit on countable assets that stands at $129,094.
Some assets that you may have in your possession do not count, including your home and your motor vehicle. Your personal belongings and your household effects are not counted when your net worth is being calculated by the Veterans Administration.
You are entitled to an additional benefit called the Aid and Attendance Retirement Pension if you can prove that you need assistance with your activities of daily living. There is also an added boost if you are considered to be housebound.
The basic pension limit for a single veteran is $13,752 a year. For those that qualify for the housebound designation, the figure is $16,805. Aid and Attendance eligible veterans can receive as much as $22,938 annually.
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It is important to plan ahead for expenses that you may face toward the end of your life as you simultaneously prepare your legacy for eventual distribution to your loved ones. If you are ready to take action, our firm would be more than glad to help.
We put the safety of our clients first, so we are offering consultations through video and telephone conferencing. You can set up an appointment if you give us a call at 513-721-1513, and there is a contact form on this website that you can use to send us a message.