DoD

October 17, 2013

Service members should start saving early for retirement

Terri Moon Cronk
American Forces Press Service

WASHINGTON (AFPS) — It’s never too soon to start saving for retirement, Barbara Thompson, the director of the Defense Department’s office of family policy/children and youth advised service members today.

Enlistees as young as 18 might not be thinking about saving for retirement or the importance of their Thrift Savings Plan, but that’s when they should, because retirement creeps up quickly, Thompson said.

“The vast majority of service members don’t go the full 20 years for military retirement, so they need to, from the very beginning, think about their futures,” she said. “When [service members] get out of the military, they will have something to show in a retirement plan they’ve had all along while serving.”

Sometimes “you have to start small, because that’s what you can afford, but the goal is to build up, so you’re saving more and more every year,” Thompson said.

The Thrift Savings Plan, Thompson said, offers two types of approaches: one that is tax-deferred until age 59-and-a-half when taxes on that money will be paid; and the Roth Thrift Savings Plan, in which taxes are paid up front.

“It’s an individual decision based on [service members’] circumstances, and I would highly suggest they utilize the financial resources that DOD provides,” Thompson said.

Saving for retirement is not only about financial readiness, it’s also critical for service members’ financial well-being, she said.  And DOD offers numerous resources to help with retirement account guidance, Thompson added.  Military OneSource has financial counselors who are available by phone, online or in person, she said. Its online calculations also show service members how their savings will develop over time.

Military installations offer personal financial managers at base family centers, Thompson added. The counselors are certified in financial counseling and can help families decide which of the two plans best meet their needs.

Banks and credit unions also offer financial education, and the Thrift Savings Plan website offers a wealth of information as well, Thompson said.

Regardless of the Thrift Savings Plan service members and families choose, they should periodically revisit their retirement accounts and stay informed by researching financial matters, Thompson said.

“It’s not now, it’s the future you need to be thinking of,” she said. “We’re seeing a trend in the United States [in which] people are reaching retirement age and they’re realizing they may not have enough [money] as they get into their 80s and 90s. You want to make sure all those years are covered so you don’t become a burden to your children or to society.”




All of this week's top headlines to your email every Friday.


 
 

 
DoD
(U.S. Air Force photo by Airman 1st Class Rachel Loftis)

DoD helps protect beneficiaries from deceptive pharmacy practices

WASHINGTON – In the face of recent aggressive and deceptive marketing practices of some compounding pharmacies targeting TRICARE, the Defense Health Agency is taking aggressive action to help TRICARE beneficiaries, DHA’s ch...
 
 
DoD

Tips for surviving PCS season

SCOTT AIR FORCE BASE, Illinois – Preparation for the upcoming peak moving season for service members has begun and officials in charge of the Department of Defense’s household goods moving program, the Defense Personal Property Program, want to remind everyone that the summer months can be a challenging time for moving. “We know moving can...
 
 
DoD

General Breedlove: Russia now taking ‘Different Path’

WASHINGTON – The West assumed the best of Russia once the Cold War ended, but Russian President Vladimir Putin had other plans and NATO must remain strong in face of the threat from the East, Air Force Gen. Philip M. Breedlove said here yesterday. Breedlove, the Supreme Allied Commander Europe and commander of U.S. European...
 

 
DoD

Official provides update on combat jobs for women

WASHINGTON – Since the Defense Department rescinded a 1994 policy that excluded women from serving in direct ground combat positions, the services have opened about 91,000 jobs to female service members, the Joint Staff’s vice director said here today. Air Force Maj. Gen. Jacqueline D. Van Ovost spoke at a Carnegie Endowment for International Peace...
 
 
DoD

New tuition assistance tool attuned to troops’ educational needs

WASHINGTON – The Defense Department continues to invest in its service members and has introduced a new online informational tool tailored to their unique school programs and educational needs, the Defense Department’s chief of voluntary education said in a DoD news interview this week. Dawn Bilodeau discussed a new online tool called “Tuition Assistance DECIDE.”...
 
 
DoD

New DoD cyber strategy nears release, official says

WASHINGTON – The Defense Department will release a new cyber strategy next week to guide the way ahead for cyber in the foreseeable future, a senior Pentagon official told Congress today. Testifying before the Senate Armed Services Committee’s emerging threats and capabilities subcommittee, Eric Rosenbach explained how DoD plans to continue improvement to America’s cybersecurity...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>


Directory powered by Business Directory Plugin