December 09, 2010 
By Cara Newman
For the first time, soon-to-be military retirees have a guide that can help them make the most of that final PCS with the “Best Places for Military Retirement” list. Commissioned by USAA and Military.com to help military retirees with this major life transition, the list analyzes factors that should be taken into account when deciding where to live.
The military provides its members and their families many benefits from food, clothing and shelter to top notch medical care. When you retire you’ll suddenly find yourself responsible for covering these costs. Choosing the right place can have an enormous impact on these expenses. For example, you may choose to live where housing is more affordable and/or close to a military installation. When it comes to healthcare, you will want to be aware if your doctor of choice accepts TRICARE and consider the proximity of VA hospitals or clinics.
Some areas may have all of the things you’re looking for while others may only have one or two. In this case, it’s important to make a list and prioritize. Hopefully, you can find a locale with at least a few of the items important to you. June Walbert, a Certified Financial Planner™ at USAA says, “One reason Texas metro areas dominated the ‘best places’ list is Texas has no state income tax and therefore military pensions are state tax free. Texas also has a significant military presence. That translates to availability of Veterans’ Affairs facilities as well as military installations where retirees may enjoy amenities, such as the lower prices at exchanges and commissaries.”Finding a job may be important to some military retirees. The “Best Places for Military Retirement” list looks at unemployment numbers to help you pick a final PCS with better second career prospects. While you will begin receiving your military pension right after you retire, finding another job will allow you to save this money for your “true” retirement, get out of debt, or do the things that you love. Additionally, a job may offer benefits such as health, disability and life insurance at lower group rates.
“A military member should approach retirement methodically. Just like the many operations you planned or participated in, every “i” should be dotted and “t” crossed as you plan your retirement. You get that one last government provided relocation and you need to make the most of it,” concludes Walbert.
Below are some of the factors you may want to consider when you are deciding where to retire. You can use the “Best Places for Military Retirement” list to match what each place offers with your own list of needs.
• Military Pension. A military pension is likely not be enough to support you and your family, but it does give you options other people may not have, such as taking a lower paying job you truly love. If you live somewhere with a lower cost of living your retirement check will go farther. Additionally, look for a tax break when it comes to your pension.
• Employment. You may need, or want, to get a job. Look for an area that offers economic stability and the promise of long-term growth. Check out the “Best Places for Military Retirement” list for unemployment rates.
• Housing. USAA’s free Home Circle™ online program can help you find an affordable area with the amenities you need. It lets you search by military installation, as well as city, zip code, or neighborhood. Additionally, it offers important information about schools and crime rates.
• Health Insurance. Military retirees automatically receive health benefits through TRICARE. If you need special healthcare needs, make sure it is available in your area.
• Higher Education. The Post 9/11 GI Bill may pay college tuition based upon the highest in-state tuition charged by a public school where you attend. The bill may also offer service members the opportunity to transfer these benefits to their kids. There are some strict rules governing this particular benefit, so review well in advance of retirement. This can save you thousands of dollars.
• Additional military benefits. Retired members and spouses keep all commissary, exchange, theater, arts, and recreation privileges. Living near an installation can stretch your budget.
Now, remember retirement is not all business. It’s supposed to be fun and filled with adventure for you and your family. You deserve it!
Home Circle™ is a program provided by United Services Automobile Association. Availability, eligibility restrictions and fees may apply to certain banking, insurance or ancillary products. Property and casualty insurance provided by United Services Automobile Association, and its affiliate property and casualty insurance companies is available only to persons eligible for P&C group membership. Loans subject to credit and property approval. Bank products provided by USAA Federal Savings Bank, Member FDIC. Purchase of a bank product does not establish eligibility for or membership in USAA property and casualty insurance companies. Equal Housing Lender. Some products provided through Home Circle are provided, directly or indirectly, by third party providers. Each company or provider has sole liability for its own products.
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