More than 10,000 baby boomers retire every day, a trend that is expected to continue through at least 2030. But about 35 million of the 76 million baby boomers in the United States lack any retirement savings.
For veterans of the United States armed forces, the U.S. Department of Veterans Affairs provides a broad range of benefits and services, including programs that specifically address the changing health risks and financial challenges of aging veterans.
Unfortunately, many eligible veterans and their families don’t take advantage of these benefits because they aren’t aware of them or think they aren’t eligible. According to a Harris Interactive survey, 69 percent of veterans and their families who are 55 or older are not aware of the VA Aid & Attendance benefit, which provides financial assistance to help pay for long-term care for veterans and their spouses.
The military’s new retirement system, the Blended Retirement System, goes into effect Jan. 1, 2018. To help veterans and their family members properly plan for retirement, StreetShares published some highlights of the Blended Retirement System and insights on the importance of retirement planning in “7 Things to Know About the Military’s New Blended Retirement System”:
A huge change is on the horizon for many of our nation’s service members in the form of a new retirement system. The military will begin implementation in 2018, affecting not only military members who will begin their careers in 2018 but also those who currently serve. Why the change? As it stands, only 19 percent of active duty members and 14 percent of reserve members will actually hit the 20-year service mark required to receive retirement benefits from the military — about 1/6 of its population, according to the DoD.
The Department of Defense is rolling out the Blended Retirement System to serve the remaining 80 percent of service members currently left out in the cold. The goal is to offer a retirement system that aligns more closely with a civilian 401(k) plan, as well as to offer benefits for those who serve their country in uniform but not for a full 20-year career. While this new system is designed to save the government money, many benefits are available for military members who understand the new system and want to build their savings for retirement as a veteran who may be seeking to open a small business or a government contractor.
Founded in 2013, StreetShares brings together veteran business owners in search of funding and investors looking for both financial and social returns. To read the rest of the blog post, head on over to StreetShares. You can also download a copy of Blended Retirement System: Guide to Military Retirement to help you understand the new Department of Defense Blended Retirement System and how it applies to you.