Living on a fixed income can make it tough for former service members to enjoy the freedom of retirement. When your benefit amounts are set but your living costs continue to rise, it’s easy to feel stretched thin.
This guide provides tips to help you make the most of your well-deserved retirement, including how to navigate everything from budgeting to earning supplemental income.
6 Financial Tips for Retired Veterans
Retirement should feel like a break, not a balancing act. Try these tips to make surviving on a fixed income easier.
1. Find a Budgeting Method That Works for You
Budgeting is essential when living on a fixed income, but it shouldn’t require you to eliminate every source of joy. Instead, use it to build structure into your finances. Its purpose is to help you spend intentionally.
One simple approach is the 50/30/20 method, which divides your income like this:
- 50% for needs like housing, groceries, and managing healthcare costs
- 30% for wants like hobbies, dining out, or trips to see family
- 20% for debt payments or short-term savings
To stay organized, try using free budgeting apps instead of traditional pen and paper. They make money management easier and can help you track where your cash goes more intuitively.
2. Start Maximizing VA Retirement Benefits
Veterans have access to a range of benefits through the Department of Veterans Affairs (VA) that can help ease monthly expenses.
For example, the Aid and Attendance benefit can provide support if you need help with daily activities like bathing or dressing. Similarly, the Housebound allowance can add financial relief for veterans who spend most of their time at home.
Beyond VA-specific benefits, many veterans also qualify for general programs such as Social Security, Medicaid, or SNAP. Combining these resources with your VA benefits can give you more flexibility in your budget and help cover essential costs without stretching your fixed income too thin.
3. Build an Emergency Fund
Sometimes the car battery dies, a water heater gives out, or an unexpected copay pops up. Building a cash cushion can help you handle these moments without taking on new debt or draining your veteran pension.
Don’t be afraid to start small, even if it’s just $25 or $50 from each month’s income. Set it aside in a separate savings account so it’s out of sight. Over time, you’ll build a safety net that can make a big difference during an emergency.
4. Leverage Veteran Discounts and Financial Products
You can access a lot of discounts as a veteran. Many companies offer special rates or benefits exclusively for service members, and those savings can add up when you’re surviving on a fixed income.
Check for discounts on:
- Groceries and retail: Major chains and local stores may provide up to 20% off.
- Travel: Airlines, hotels, and car rental companies frequently offer reduced rates to veterans.
- Healthcare: Some pharmacies and medical providers offer savings for those managing healthcare costs for retired veterans.
It can also be helpful to use veteran-specific financial products, such as low-fee checking accounts and credit unions that cater to military families. Some providers offer benefits like waiving late payment fees or longer grace periods for overdrafts.
5. Explore Supplemental Income (But Know the Rules!)
Supplemental earnings can help you live more comfortably. It’s not unusual for veterans to pick up some extra work to stay active and earn additional income. Look into side gigs like:
- Freelance writing, bookkeeping, or graphic design
- Driving or delivery apps like Uber and DoorDash
- Tutoring or substitute teaching
- Pet sitting and dog walking
- Trabajo estacional en el comercio minorista
- Defense consulting
Just make sure you understand how new earnings could affect your benefits. For example, before jumping into a side hustle, review how it might interact with your veteran pension or Social Security payments.
For example, the eligibility requirements for many veterans pensions include needs-based income limits, and exceeding them could cost you your benefits.
6. Take Advantage of Free Resources
You don’t have to navigate surviving on a fixed income alone. If you need advice, start with free financial counseling available through organizations like the Department of Veterans Affairs, Military OneSource, or local nonprofits.
These experts can help with budgeting, find ways to cut expenses, and help you save money through smarter planning.
Your Next Mission: Peace of Mind
Living on a fixed income has its challenges, but with the right strategies, you can enjoy a comfortable and secure retirement. Budgeting wisely, maximizing your VA benefits, and earning supplemental income are all strategies that can help you maintain financial stability as a retired veteran.
