By The Office of Financial Readiness     October 2026

Congratulations! You've entered or are approaching the three-year window before retirement and are closing in on the end of your military career. Are you ready to start planning your next steps?

You have lots of choices and decisions to make in preparation for your retirement. Be sure to set aside time from your daily commitments to plan your successful transition to civilian life. Consider preparing short-term, five-year and long-term plans. You can always modify and adapt them to changing family preferences, circumstances and priorities.

Ease your transition by using all available services and assistance to guide you through the process. Start collecting information for your transition 36 months before your planned retirement. This should give you time to make significant life decisions, consider retirement locations and determine the best options for you and your family. Take time to create your individual transition plan, or ITP, tailoring it to fit what is important to you. Work with specially trained counselors, available at most installations, who can provide checklists, timelines and referrals to transition courses and specialized services to keep your plan on track.

As a service member, you have a wealth of no-cost legal, financial and employment/education resources available to you. You may not have used all these services during your career, but they could come in handy now.

Create or update your estate plan. Schedule an appointment with a Judge Advocate General's Corps attorney at your installation's legal assistance office to get all of your legal documents in order. This may include updating a will, power of attorney and health care proxy.

Review your finances. Speak with an accredited personal financial manager or personal financial counselor at your nearest Military and Family Support Center to assist with financial services that might include:

• Creating your transition spending plan in preparation for the move from regular pay to retirement pay. TRICARE health and dental benefit plans and premiums will change in retirement. You also may want to convert your Servicemembers' Group Life Insurance, or SGLI, to Veterans' Group Life Insurance, or VGLI.

• Determining your cost-of-living changes if you are thinking about relocating. Consider housing costs, state/property taxes, tax exemptions for veterans, etc.

• Setting up a transition fund to cover unexpected expenses, a gap before receiving retirement pay or an extended job search. Most financial advisors recommend a cash reserve that covers a minimum of six months. Consider conservative investment options such as money market accounts or short-term Treasury securities that you can quickly convert to cash without losing value.

• Creating a cash-flow analysis to determine which months typically have higher expenses. Think holiday season, vacations, birthdays, back to school, etc.

• Developing a plan to pay off any debt you might have so you can be debt free, or well on your way, when you retire.

• Analyzing finances and funding options if starting or buying a business might be in your future. Consider resources available through the Small Business Administration.

• Reviewing Thrift Savings Plan, or TSP, and other investment options. Decide whether you intend to keep investments where they are or roll them into another plan.

• Maximizing your money by taking advantage of military discounts. Enjoy tax-free shopping and discount goods and services at your commissary and exchange, substantial savings on travel, entertainment, recreation, and much more. Check, too, for discounts you may qualify to receive from restaurants, retail stores, entertainment venues, insurance companies and repair shops.

• Work with an education or employment counselor. Assistance is available on your installation or through Military OneSource. You can receive help identifying your education benefits and options and with all aspects of your job search.

• Build your network. Talk to military retirees who are enjoying civilian life and ask for resources they recommend and their "lessons learned." Request introductions to others who have common interests or may know of opportunities in your field or desired location. This is a great time to reconnect with old acquaintances and meet new contacts. Some professional networking platforms may even offer complimentary subscriptions to members of the military community.

• Understand your Department of Veterans Affairs benefits to make sure you take advantage of the benefits you've earned!

Starting your transition planning early helps avoid unnecessary and costly mistakes. So, take time to ponder all the possibilities. Enjoy the opportunity to learn and grow as you consider your options, explore your passions and develop your plan for your next mission.