From Service to Security – Retirement Planning for Military Families

A webinar hosted by ACLI and Blue Star Families

Overview

The American Council of Life Insurers hosted a webinar with Blue Star Families to discuss the unique financial challenges and opportunities facing military families—covering everything from retirement planning and spouse employment to the impact of frequent moves and new policy changes.

Below, you’ll find an edited and condensed version of the conversation. For the full experience, be sure to check out the recording from Blue Star Families, here.

Opening & Introductions

Blue Star Families (Moderator):

Today’s webinar is all about our service members and their families—specifically, how we can support your financial readiness, well-being, and peace of mind. I’m excited to introduce Andrew Remo, Vice President of Retirement Security at ACLI, who will be facilitating today’s discussion.

ACLI (Andrew Remo):

Retirement security is a huge priority for the life insurance industry—we’re talking about $4.3 trillion in retirement savings managed for Americans. And with the number of people over 65 soon to outnumber children in the U.S., the need for retirement security is only growing.

ACLI has worked closely with Blue Star Families over the years, advocating for policies that better support military families. We also track how military families are doing through our Quarterly Financial Resilience Index, which I’ll talk about in a bit.

First, let me introduce our panelists:

• Emily Becker, Senior Director of Research and Evaluation at Blue Star Families. She leads research initiatives like the annual Military Family Lifestyle Survey and works to build strong evaluation systems for community programs.
• Josh Andrews, Advice Director at USAA and a Certified Financial Planner. Josh served 20 years in the Air Force and now helps USAA serve military members as they make important financial decisions.

Financial Resilience & Military Family Challenges

ACLI (Andrew Remo):

What does the data say about the biggest challenges military families face—especially around spouse employment and retirement savings?

Blue Star Families (Emily Becker):

Military families, just like everyone else, experience financial strain—but there are some unique challenges. Frequent moves are a big one. Our data shows that almost 70% of families report out-of-pocket moving expenses over $500, and for many, it’s thousands of dollars.

When you ask how they’re covering those costs, over 40% say they’re using credit cards and can’t pay off the balance that month—so that debt just follows them through the year.

When families are getting ready to transition out of the military, about 54% have less than $5,000 in emergency savings. You can see how frequent moves, debt, and housing costs (only 37% can find housing within their Basic Allowance for Housing, down from 58% in 2020) all add up. It’s a chain reaction that impacts both emergency savings and long-term financial security.

Everyday Financial Planning & Lessons Learned

ACLI (Andrew Remo):

What are the biggest lessons learned when it comes to everyday financial planning?

USAA (Josh Andrews):

The biggest lesson is the importance of just starting to save for retirement, no matter how small.

Let’s say you save $500 a month at a 6% return. If you start at 22, you could have over $1.1 million by 65. If you wait until 42, it’s only about $281,000. That’s a huge difference!

Sometimes people feel like they can’t save that much. If you can’t do 10%, do 1%. If that’s too much, start with $50. The key is to start somewhere.

Another big lesson: don’t underestimate the Survivor Benefit Plan (SBP). It’s usually the most cost-effective way to provide for your family if something happens to the retiree. For example, SBP might cost $175 a month for a $1,485 monthly survivor benefit, while equivalent life insurance could cost over $700 a month. Life insurance is important, but SBP is usually the best option for this specific need.

Policy Changes & Financial Security Trends

ACLI(Andrew Remo):

What are the impacts of increased education and access to financial products for military families?

USAA (Josh Andrews):

We’re seeing increased financial security. From 2019 to 2023, the average savings account balance for military members went up by 19%. Fewer people are carrying credit card debt for more than six months—down from 45% to 37%. Youth savings account balances for military kids went up by 25%, compared to 15% for civilian kids. So even with the challenges, military families are saving more, paying off debt, and teaching their kids good habits.

Military Spouse Employment & Retirement

ACLI (Andrew Remo):

What are the biggest trends around military spouse employment, and how does that affect retirement?

Blue Star Families (Emily Becker):

About 23% of military spouses are unemployed, which is much higher than the national average. And 77% of military families say two incomes are vital for their well-being.

Frequent moves and childcare issues (64% say childcare is a barrier) make it tough. But there’s good news: 35% of active-duty spouses now work remotely, and 16% can keep those jobs after a move. We’ve been following military spouses over three years and found seven stages in the military family lifestyle that affect employment—from entering military life and moving, to parenting, deployments, caregiving, and eventually transitioning out. All these factors impact not just immediate finances, but also long-term retirement security.

Retirement Savings Tips

ACLI (Andrew Remo):

Is there a minimum you have to put toward a retirement account?

USAA (Josh Andrews):

Nope! There’s no minimum. Whether it’s a 401(k), TSP, or IRA, you can contribute what you can. Many plans automatically enroll you at 3%, but you can adjust that. If you can, try to contribute at least 5% to get the maximum employer match—that’s free money!

ACLI (Andrew Remo):

What should military families do to make sure they’re prepared for the future?

USAA (Josh Andrews):

Don’t wait to be debt-free before you start saving for retirement. If you wait, you might never start. Even if it’s just a little, start now. Have a plan and stick to it—spend less than you earn and pay yourself first.

If you’re getting close to retirement, revisit your plan. Maybe you need to increase your contributions or even delay retirement a bit to let your savings and Social Security grow. And don’t be afraid to reach out to a financial advisor for help.

Q&A Highlights

Retirement Home as Rental:

Do your homework—think about risks, insurance, and maintenance before renting out part of your home. Make sure you’ve analyzed the full financial picture.

Social Security:

Delaying Social Security increases your monthly payment by 8% per year up to age 70. Once you claim, your payment is locked in.

Social Security & VA Disability:

You can collect both at the same time.

Emergency Fund vs. Retirement Savings:

Don’t wait until you have a full emergency fund to start saving for retirement. Have a small fund ($1,000–$2,000) for emergencies, then multitask: save, pay down debt, and build your fund over time.

BRS Lump Sum Option:

Taking the lump sum usually means losing money over time. It’s generally better to take the monthly payments unless you have a specific need for a large sum.