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

DoD takes steps to aid absentee voters

WASHINGTON – As the Nov. 4 midterm election nears, Defense Department officials are taking steps to ensure absentee voting is even easier for service members, their families and overseas citizens via FVAP.gov. In coordination with the military services and State Department, Absentee Voting Week begins today, aiming to raise awareness and remind voters of important...
 
 

New EPR challenges status quo

LUKE AIR FORCE BASE, Ariz. – The enlisted performance report is going to drastically change. These changes seek to combat inflated ratings, which have been a prevalent complaint from Airmen over the years. The change is right around the corner and many Airmen are asking themselves, “How will it affect future promotions, and what can I do...
 
 

55th Rescue Squadron returns home

(U.S. Air Force photo by Senior Airman Camilla Elizeu) U.S. Air Force Maj. Stephanie Harley, 355th Aerospace Medicine Squadron Bio Engineering Flight commander, and son welcome home Capt. Colin Harley, 55th Rescue Squadron HH-60 Pavehawk pilot, at Davis-Monthan, Oct. 11. Capt. Harley has just returned from a five-month deployment to Afghanistan.
 

 

AF to implement TDY policy changes

JOINT BASE PEARL HARBOR-HICKAM, Hawaii (AFNS) — Recently, the Air Force started implementing two temporary duty policy changes that will impact travel reimbursements for Airmen. The first change, which took effect Oct. 1, made changes to the Joint Travel Regulations, Reimbursable and Incidental Expense Policy. The second will be a change in long-term TDY per...
 
 

OPSEC: Everyone’s responsibility

NELLIS AIR FORCE BASE, Nev. – Everyone who’s been around the military has heard the term Operations Security, or OPSEC, but do they really know what it means? Many people think OPSEC is all about classified information, when the opposite is true; OPSEC targets critical and sensitive unclassified information. OPSEC is a fundamental principle of the Air...
 




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