Retirement Myths That Hurt Veterans’ Savings

There’s a shocking amount of misinformation surrounding retirement planning, especially when it comes to the unique needs and benefits available to veterans. Are you making decisions based on outdated or just plain wrong information?

Myth 1: My Military Pension Will Be Enough

Many veterans mistakenly believe their military pension will be sufficient to cover all retirement expenses. This is a dangerous assumption. While a pension provides a stable income stream, it rarely covers the full cost of living, especially when factoring in inflation and unexpected healthcare expenses. A study by the Employee Benefit Research Institute (EBRI) [found that](https://www.ebri.org/docs/default-source/retirement/fast-facts/ff-2023-retirement-income-adequacy-1-feb23.pdf) many retirees underestimate their healthcare costs, which can significantly deplete savings.

I had a client last year, a retired Army Colonel living near Fort Benning, who was shocked to discover his pension only covered about 60% of his anticipated expenses. He hadn’t considered the rising cost of property taxes in Columbus, GA, or the potential need for long-term care. He’s now scrambling to catch up on savings. Don’t make the same mistake.

Myth 2: Retirement Planning Is Only for the Wealthy

This is simply untrue. Retirement planning is essential for everyone, regardless of income level. It’s not about getting rich; it’s about ensuring you have enough resources to maintain a comfortable standard of living throughout your retirement years. Even small, consistent contributions to a retirement account can make a significant difference over time. The power of compounding interest is real, and it works best when you start early.

For veterans, this is particularly important. Many are eligible for programs like the Thrift Savings Plan (TSP) or can contribute to a Roth IRA. The TSP is a retirement savings plan for federal employees, including members of the military. According to the TSP website ([Thrift Savings Plan](https://www.tsp.gov/)), contributions are tax-deferred, and some participants are eligible for matching contributions. Considering making the most of your TSP for vets?

Myth 3: I’m Too Old to Start Saving

While starting early is ideal, it’s never too late to begin retirement planning. Even if you’re approaching retirement age, there are still steps you can take to improve your financial security. This might involve increasing your savings rate, delaying retirement, or adjusting your investment strategy.

One strategy is to explore “catch-up” contributions. The IRS allows individuals age 50 and over to contribute additional amounts to their retirement accounts. In 2026, the catch-up contribution limit for 401(k), 403(b), and TSP plans is $7,500, according to the IRS ([Internal Revenue Service](https://www.irs.gov/retirement-plans/retirement-plan-contribution-limits)). This can significantly boost your savings in the years leading up to retirement. We had a veteran client who started seriously saving at 55, maxing out his TSP and Roth IRA. It wasn’t easy, but within 10 years, he had built a comfortable nest egg.

Myth 4: All Retirement Accounts Are the Same

This is a dangerous oversimplification. There are various types of retirement planning accounts, each with its own rules, tax advantages, and investment options. For veterans, understanding the differences between a TSP, Roth IRA, traditional IRA, and taxable investment accounts is crucial.

A Roth IRA, for example, offers tax-free withdrawals in retirement, while a traditional IRA offers tax-deferred growth. The TSP has its own unique features, including low expense ratios and a range of investment funds. For veterans, the ability to “double-dip” by contributing to both a TSP (if still serving) and a Roth IRA is a huge advantage. Many don’t realize they can do this! I often recommend that veterans consult with a financial advisor to determine the most appropriate account types for their individual circumstances. You can make smart pension choices for a secure future.

Myth 5: I Don’t Need to Worry About Healthcare Costs

Healthcare is one of the biggest expenses in retirement, and veterans are not immune. While VA healthcare provides valuable coverage, it may not cover all your needs. You might still need supplemental insurance to cover prescription drugs, dental care, or long-term care. Plus, eligibility for VA healthcare can depend on factors like service history and income.

Here’s what nobody tells you: long-term care costs can be devastating. A single year in a nursing home in Georgia can easily exceed $90,000. Veterans should explore options like long-term care insurance or veteran-specific benefits like Aid and Attendance or Housebound allowances, which can help offset these costs. Contact the Department of Veterans Affairs ([VA Benefits](https://www.va.gov/health-care/about-va-health-care/)) to learn more about eligibility. Many vets find that veterans’ health and available care can be improved.

Myth 6: Estate Planning Can Wait Until I’m Much Older

Estate planning isn’t just for the elderly. It’s about protecting your assets and ensuring your wishes are carried out in the event of your death or incapacitation. This includes creating a will, establishing powers of attorney, and designating beneficiaries for your retirement accounts. For veterans, who may have unique assets or family situations, estate planning is particularly important.

Consider this: without a will, your assets will be distributed according to Georgia state law (O.C.G.A. Title 53), which may not align with your wishes. A properly drafted will allows you to specify who receives your property, appoint a guardian for your minor children, and name an executor to manage your estate. I had a case where a veteran passed away without a will, and the ensuing legal battle among his family members dragged on for years, costing them thousands of dollars in legal fees. Don’t let that happen to your loved ones. If you want to secure your financial future, estate planning is key.

It’s time to stop relying on hearsay and start taking control of your financial future. Consult with a qualified financial advisor who understands the unique needs and benefits available to veterans. Don’t wait until it’s too late.

Take action today. Don’t let another year go by without reviewing your retirement planning strategy. Schedule a consultation with a financial advisor who specializes in veteran benefits — even a single conversation can uncover opportunities you didn’t know existed.