Military Retirement Planning | South Jersey Advisor

Military Retirement Planning for South Jersey and Jersey Shore Veterans & Service Members

After 20 or more years of service, you've earned a pension, built a TSP, navigated TRICARE, and faced decisions — about your survivor benefit, your VA rating, your life insurance — that most advisors have never seen before. We have.

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Military retirement is not like civilian retirement. The benefits are different, the decisions happen at different times, and the interaction between a pension, VA disability pay, the Survivor Benefit Plan, and TRICARE creates a financial picture most advisors aren't equipped to read.

At Genesis Wealth Advisor Group, we work with military retirees, transitioning service members, and surviving military spouses in South Jersey and surrounding states to help them understand every component of what they've earned — and build a retirement income plan that makes it work together.

Our Founder, Scott Jones, knows this work personally. His father was a U.S. Army veteran. Navigating benefits, care planning, and the financial decisions that surround a veteran's retirement gave him a direct appreciation for how much is at stake — and how much goes uncoordinated for families who deserve better.

That experience is part of why Genesis Wealth Advisor Group became a sponsor of Hook, Line, and Warriors, a South Jersey nonprofit that uses fishing to support veterans' mental health and recovery. Our commitment to the veteran community is not a marketing position — it reflects who we are.

Is This You?

You've retired from active duty — or are approaching retirement — and want to understand exactly how your pension, TSP, and VA benefits fit together
You're within 2-3 years of military retirement and need to understand your Survivor Benefit Plan election before it's permanent
You have a VA disability rating and aren't sure whether you qualify for concurrent receipt — or how it affects your total retirement income
You transitioned from active duty but never replaced your SGLI with a permanent life insurance strategy
You're approaching 65 and need to understand how TRICARE For Life and Medicare Part B work together
You serve at or near Joint Base McGuire-Dix-Lakehurst and are planning the financial transition from military or DoD civilian service
You're a surviving military spouse and want to understand what Survivor Benefit Plan payments and VA benefits remain available to you
You want an independent advisor — not one connected to a bank or product company — who can look at your full picture without an agenda

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By the Numbers

~300,000 veterans call New Jersey home — one of the largest veteran populations in the Northeast.¹
200,000 TRICARE-eligible military retirees nationwide are not enrolled in Medicare Part B — unknowingly losing their TRICARE coverage as a result.²
4 in 10 military households currently work with a financial advisor.³
Military retirement and healthcare benefits differ significantly from civilian counterparts — yet most military households don't recognize that those differences require specialized knowledge to navigate.³

What Makes Military Retirement Planning Different?

Military retirement benefits are designed differently than civilian retirement accounts — and the decisions that shape their value happen at specific points in time, often before retirees fully understand what they're choosing.

Your pension starts at the moment you retire, regardless of age. Your TSP has its own rules and investment decisions. Your VA disability claim — if you have one — interacts directly with your pension through rules that changed significantly after 2004. Your Survivor Benefit Plan election is made once, at retirement, and is difficult to reverse.

None of these pieces were designed to coordinate cleanly. That's the planning work.

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What Are Your Core Military Retirement Benefits?

What is the military pension and how is it calculated?

The military defined benefit pension is calculated using one of two formulas depending on when you entered service.

Under the legacy High-3 system (for most service members who entered before 2018):

2.5% × Years of Active Service × High-3 Average Basic Pay

At 20 years of service, that equals 50% of your High-3. At 30 years, 75%. The pension begins immediately at retirement and includes annual cost-of-living adjustments.

Under the Blended Retirement System (BRS), which applies to those who entered service on or after January 1, 2018 or opted in during 2018:

2.0% × Years of Active Service × High-3 Average Basic Pay

BRS trades a lower multiplier for agency TSP matching of up to 5% — a meaningful difference for service members who maximize TSP contributions throughout their career.

Example: A 20-year retiree under the legacy system with a High-3 basic pay of $80,000 receives 50% of that — $40,000 per year ($3,333/month), paid for life with annual COLA adjustments.

Example is hypothetical and for illustrative purposes only. Individual results will vary based on actual service history, pay grade, and retirement date.

How does the TSP work for military members in retirement?

The Thrift Savings Plan for military members functions similarly to a civilian 401(k). It grows tax-deferred and becomes a primary supplemental income source in retirement.

For legacy system members, there is no agency match — contributions are entirely employee-funded. For BRS members, the government automatically contributes 1% of basic pay and matches contributions up to an additional 4%, for a potential 5% total.

At retirement, the key decisions include how the account is invested, whether to keep funds in the TSP or roll over to an IRA, and how to sequence withdrawals relative to your pension and Social Security.

What Decisions Have the Biggest Impact on Your Military Retirement?

What is the Survivor Benefit Plan and why does the election matter?

The Survivor Benefit Plan (SBP) is an annuity program that provides a continuing income to your surviving spouse — or another designated beneficiary — if you die before them. It pays 55% of your covered retired pay.

The cost is 6.5% of your base retired pay, deducted monthly. The election is made at retirement, and once declined or reduced, it cannot easily be reinstated. Opting out means your pension income ends entirely when you die.

Whether electing SBP makes sense — and at what coverage level — depends on your spouse's other income sources, your life insurance coverage, your age gap, and your overall estate plan. This is one of the most permanent financial decisions a military retiree makes.

Can you collect both VA disability compensation and your military pension?

Under the legacy offset rules, VA disability pay was deducted dollar-for-dollar from your military retirement pay — meaning you weren't actually receiving both, just shifting the source.

Concurrent Retirement and Disability Pay (CRDP) changed that for qualifying retirees: those with 20 or more years of service and a VA disability rating of 50% or higher can now receive both their full military retirement pay and their full VA disability compensation simultaneously.

For service members with combat-related disabilities and lower VA ratings, Combat-Related Special Compensation (CRSC) may apply separately.

If you have a VA disability rating and haven't reviewed whether you qualify for CRDP or CRSC, that review belongs in your retirement income plan.

What happens to your life insurance coverage after you separate?

Service members Group Life Insurance (SGLI) provides up to $500,000 in coverage during active duty. When you leave service, that coverage ends. Veterans Group Life Insurance (VGLI) allows you to convert SGLI to civilian coverage without a medical exam — but only if you apply within 240 days of separation.

The problem with VGLI is that premiums increase every five years and can become very expensive in your 50s and 60s. For most transitioning service members, replacing SGLI with permanent or long-term private life insurance early in the transition — while you are still healthy — is significantly more cost-effective.

This decision is time-sensitive. Once the VGLI conversion window closes, medical underwriting applies.

What changes about TRICARE when you turn 65?

Military retirees who reach age 65 must enroll in Medicare Part B to maintain TRICARE coverage. At that point, standard TRICARE transitions to TRICARE For Life (TFL), which acts as secondary coverage that wraps around Medicare — covering most cost-sharing that Medicare does not pay.

The combination of Medicare Part B and TRICARE For Life is one of the most comprehensive healthcare packages available to any retiree. Whether to supplement it further — and how to budget the Medicare Part B premium — is part of your retirement income planning.

How Does Genesis Help Military Retirees Plan for What's Next?

We work best with military retirees and transitioning service members who want the full picture — not just a pension analysis or a product recommendation.

"Military families have access to some of the most comprehensive retirement benefits in the country. But those benefits are also among the most complex. The families I've worked with rarely lost money because anyone made a mistake — they lost it because no one was responsible for seeing the full picture. That's the work we do."

— Scott Jones BFA™ CPFA® CRPC® RFC®, Founder, Genesis Wealth Advisor Group

What does a military retirement review actually include?

Review your pension calculation under your retirement system and service history
Analyze your Survivor Benefit Plan options alongside your life insurance coverage and estate plan
Evaluate your VA disability rating for CRDP or CRSC eligibility
Review your TSP allocation and build a drawdown strategy that integrates with pension income
Map your TRICARE and Medicare transition at 65
Address any life insurance gap from SGLI separation
Coordinate with estate planning, long-term care planning, and VA Aid & Attendance planning where applicable
Model Social Security timing in the context of your pension and TSP income

Coordinate Your Planning

What about DoD civilians or veterans transitioning into federal service?

Many service members separate from active duty and move into DoD civilian positions — often at installations like Joint Base McGuire-Dix-Lakehurst. If that describes you, your military service may count as creditable service toward your FERS pension — creating a hybrid retirement picture that combines military retirement benefits with FERS. We work alongside Steve Donnelly, FRC®, an affiliated Federal Retirement Consultant with specific training in federal employee benefits, to address that complexity.

Why does it matter that we're independent?

As an independent fiduciary advisory firm, we have no proprietary products to recommend and no bank, insurance company, or broker-dealer compensating us for how we structure your retirement. Our only obligation is to the families we serve — including the families of veterans who have given the most.

FAQ

I have a VA disability rating but I'm not sure what it means for my retirement income. Where do I start?

Start by confirming whether your rating qualifies you for Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC). CRDP requires 20 or more years of service and a combined VA rating of 50% or higher. CRSC applies to combat-related disabilities and has its own eligibility criteria. Getting clarity on which — if either — applies to you is the first step in building an accurate picture of your retirement income.

Should I elect the Survivor Benefit Plan at retirement?

There is no universal right answer. The SBP provides meaningful protection for a surviving spouse — 55% of your covered retirement pay, for life — but it costs 6.5% of your retirement pay and requires careful analysis relative to your life insurance, your spouse's other income sources, and your estate plan. We walk through this decision before retirement, when you still have the full range of options. Once waived at retirement, reinstatement has strict limits.

I separated years ago and never replaced my SGLI. What are my options now?

VGLI is still available if you're currently enrolled — but if the initial conversion window has closed and you haven't applied, VGLI requires medical underwriting. Depending on your age and health, private life insurance may offer better coverage at a lower long-term cost. The best time to address this was at separation; the second-best time is now.

How does military retirement interact with Social Security?

Unlike CSRS federal employees, military retirees do pay into Social Security and are entitled to benefits. The timing of when you claim — and how it fits alongside your pension and TSP income — affects your total lifetime income. In some cases, delaying Social Security while drawing pension income first is the right sequence. We model the options based on your specific picture.

Does long-term care planning matter differently for veterans?

Yes. VA Aid & Attendance can provide significant tax-free income — up to $2,874/month for a married veteran in 2026 — to offset long-term care costs later in retirement. Understanding how VA Aid & Attendance interacts with Medicaid, and how to plan for both without jeopardizing eligibility for either, is a meaningful part of retirement planning for veterans. We cover this in detail on our VA Aid & Attendance planning page.

You Served. Now Let's Make Sure the Benefits Work for You.

Whether you're within two years of military retirement or separated years ago and still sorting out the financial picture, we'll help you understand what you have, what decisions still matter, and how to build a plan that
reflects what your service was worth.