Four Key Military Benefits Supporting Families of Servicemembers

Military life presents numerous challenges, from frequent relocations to irregular schedules and overseas deployments. Yet, it also offers significant financial benefits that can greatly support families. As we approach Veterans Day this November, it is important to highlight four key benefits available to servicemembers and their families that have made a substantial difference for many, including those like my husband, Tom, who has served for 19 years as a pilot in the Air National Guard.

Housing Allowance: Financial Relief for Families

One of the most beneficial perks available is the basic allowance for housing (BAH). This tax-free subsidy helps cover monthly rent or mortgage payments for servicemembers who do not reside in government-provided housing. The amount received varies based on factors such as location, rank, and whether the member has dependents. For example, the BAH calculator can provide estimates based on these criteria, significantly easing the financial burden of housing costs.

Education Benefits: Unlocking Opportunities

The Post-9/11 GI Bill is another invaluable benefit, covering the full cost of in-state tuition and fees at public colleges for up to 36 months. For private or foreign institutions, there is a cap, which for the current academic year stands at $29,921. This program also allocates funds for housing, books, and supplies. Importantly, servicemembers who have served on active duty for at least 36 months are eligible for the full benefits. Those who have served for at least six years can transfer their educational benefits to spouses or children, allowing families to plan for future educational expenses.

Retirement Security: Planning for the Future

Retirement planning is crucial for military families, and the Thrift Savings Plan (TSP) offers a tax-advantaged option akin to a 401(k). The TSP features low fees and provides an automatic government contribution of 1% of basic pay. After two years of service, members can receive matching contributions of up to 4%. Under the blended retirement system (BRS), which began in 2018, servicemembers who complete at least 20 years of active-duty service are eligible for a lifetime pension. This pension is calculated based on the average of the highest 36 months of basic pay, starting at 40% of that amount at the 20-year mark, with an additional 2% for each year served beyond that.

Low-Cost Life Insurance: Affordable Coverage

Another essential benefit is the Servicemembers’ Group Life Insurance (SGLI), which provides coverage at a low monthly premium. For a maximum coverage of $500,000, servicemembers pay only $26 per month. Additionally, spouses can access coverage of up to $100,000 through Family SGLI, with rates varying by age. For instance, a spouse aged between 35 and 39 can secure $100,000 in coverage for just $4.70 monthly.

These benefits exemplify how military service can be supported through financial measures, allowing families to focus on their well-being and future prospects. Understanding and utilizing these programs can make a significant difference, especially as families navigate the complexities of military life. As we honor servicemembers this November, it is vital to acknowledge the support systems available to them and their families, ensuring they can thrive both during and after their service.

This information first appeared in Kiplinger Personal Finance Magazine, a reputable source for financial guidance and advice.