Vets: Don’t Lose Out on Retirement Benefits

The world of retirement planning for veterans is riddled with misinformation, leading many to make costly mistakes. Are you sure you know the truth about your benefits and options?

## Myth 1: I Can’t Contribute to Both a Roth IRA and the TSP

Many veterans believe they must choose between contributing to a Roth IRA and the Thrift Savings Plan (TSP), the retirement savings plan for federal employees, including military personnel. This simply isn’t true. You absolutely can contribute to both.

In 2026, you can contribute up to $23,000 to your TSP, with an additional $7,500 catch-up contribution if you’re age 50 or older. Separately, you can contribute up to $7,000 to a Roth IRA, with an additional $1,000 catch-up contribution if you’re age 50 or older. Contributing to both allows you to diversify your tax strategy in retirement. The TSP offers tax-deferred growth, while the Roth IRA offers tax-free withdrawals in retirement, assuming certain conditions are met.

I had a client last year, a retired Air Force pilot, who was convinced he couldn’t contribute to both. After showing him the IRS guidelines and illustrating the potential tax benefits, he opened a Roth IRA and began contributing the maximum amount. He’s now projected to save tens of thousands of dollars in taxes over his retirement. Don’t leave money on the table.

## Myth 2: The VA Won’t Help with Long-Term Care Costs

A common misconception is that the Department of Veterans Affairs (VA) offers little to no assistance with long-term care expenses. While the VA doesn’t directly pay for all long-term care, it does offer several programs, including the Aid and Attendance benefit, which can significantly offset these costs.

The Aid and Attendance benefit is a monthly payment added to an eligible veteran’s pension. It’s designed to help veterans (and their surviving spouses) who need assistance with daily living activities, such as bathing, dressing, or eating. The amount of the benefit varies depending on the veteran’s needs and income, but it can be substantial. As of 2026, a married veteran could receive over $3,200 per month to help cover the costs of in-home care, assisted living, or a nursing home.

We ran into this exact issue at my previous firm in Buckhead. A veteran in his late 80s was facing a significant shortfall in covering his assisted living costs at Sunrise Senior Living near Lenox Square. After reviewing his eligibility and assisting him with the application process, we were able to secure the Aid and Attendance benefit for him. The additional income allowed him to comfortably afford his care and maintain his quality of life.

## Myth 3: My Military Service Doesn’t Count Towards Social Security

Some veterans believe that their time in the military doesn’t count towards Social Security benefits. This is generally false. Military service can count toward your Social Security earnings record.

In 1956, Congress made military service creditable for Social Security purposes. For 2026, every $1,730 in earnings results in one Social Security credit, and you can earn a maximum of four credits per year. If you served in the military between 1957 and 2001, you may be eligible for special earnings credits in addition to your basic pay. These credits are added to your Social Security earnings record when you apply for benefits, potentially increasing your monthly payments. The Social Security Administration (SSA) has detailed information on how military service affects Social Security benefits.

Here’s what nobody tells you: you need to actively check that your military service is correctly recorded on your Social Security record. I recommend requesting a copy of your earnings record from the SSA and verifying that your military service is listed. I’ve seen cases where this was missed, and it required some effort to correct.

## Myth 4: I Don’t Need a Financial Advisor; I Can Manage My Retirement Myself

While self-managing your retirement savings is possible, many veterans underestimate the complexity involved and the potential benefits of working with a qualified financial advisor. Investing isn’t just about picking stocks; it’s about creating a comprehensive plan that considers your risk tolerance, time horizon, tax situation, and retirement goals.

A good financial advisor can help you develop a personalized retirement plan, manage your investments, navigate complex tax rules, and make informed decisions about Social Security and other benefits. They can also provide objective advice and emotional support during market volatility.

Consider this case study: A veteran, let’s call him John, decided to self-manage his $500,000 TSP account. He made a few risky bets on tech stocks based on advice he found online. Within a year, he lost 20% of his portfolio. Discouraged, he finally sought help from a financial advisor. The advisor created a diversified portfolio with a mix of stocks, bonds, and real estate, aligned with John’s risk tolerance. Within three years, John’s portfolio had not only recovered its losses but had also grown by 15%. The advisor also helped him optimize his Social Security claiming strategy, increasing his monthly benefits by $300. Was the advisor worth the fee? Absolutely. And as you prepare for retirement, make sure you know if you’re really ready.

## Myth 5: I’m Too Young to Start Retirement Planning

“I’ll start saving for retirement later” is a sentiment I hear all too often. One of the biggest mistakes veterans make is delaying retirement planning until they’re close to retirement age. The earlier you start, the more time your money has to grow, thanks to the power of compounding.

Even small contributions made early in your career can have a significant impact on your retirement savings. A 25-year-old who starts saving $200 per month and earns an average annual return of 7% could accumulate over $600,000 by age 65. Waiting until age 45 to start saving the same amount would result in significantly less – around $180,000, assuming the same return. Time is your greatest asset when it comes to retirement planning. Don’t waste it. It’s all part of securing your financial future.

Don’t fall victim to these common retirement planning myths. Take control of your financial future by seeking out reliable information and professional guidance. Your service to our country deserves a secure and comfortable retirement.

The most important thing you can do today is schedule a consultation with a financial advisor who understands the unique challenges and opportunities facing veterans. Don’t wait; your financial future depends on it.