Transitioning From Military to Civilian Life

Transitioning from military to civilian life comes with many changes. As you move away from the military lifestyle, some things will feel different. Your daily routine might be more flexible, job responsibilities may be less defined, and you may have more choices for housing and work. These changes can feel overwhelming at first, but there are many resources available that can help you navigate the process.

This guide will walk you through the following areas to help you prepare for civilian life:

1. Exploring transition assistance programs
2. Building your financial foundation and transition fund
3. Advancing your education and skills
4. Shaping a career after military service
5. Establishing your new home base
6. Taking care of your health and wellness
7. Securing your financial future

1. Exploring Transition Assistance Programs (TAP)

The Department of Defense’s Transition Assistance Program (TAP) provides support to servicemembers and military personnel seeking transition. This required program helps ensure you’re ready for civilian life with comprehensive training and workshop options like:

• pre-separation counseling
• VA benefits briefings
• financial planning workshops
• job search preparation
• military skills translation
• resume writing support

TAP also offers specialized tracks. Your vision for civilian life will help you choose which option will be most beneficial for your situation. The tracks include:

• Employment Track. A track for those heading directly into civilian jobs.
• Education Track. A track for those planning to attend college.
• Vocational Track. A track for those seeking technical training and certifications.
• Entrepreneurship Track. A track for those starting their own business.

You can also participate in multiple tracks. For example, many Veterans explore both employment and education options.

2. Building Your Financial Foundation and Transition Fund

Having a strong financial plan for your transition can help give you some stability. Aim to save 3-6 months of living expenses as a first step, then add extra for transition-specific costs like relocation expenses and job training. 

Military pay and civilian pay work differently. As you plan your transition to the civilian world, you’ll need to account for expenses previously covered by military benefits like the Basic Allowance for Housing (BAH) and the Basic Allowance for Subsistence (BAS). Make sure to plan for expenses such as housing, groceries, healthcare, life insurance, childcare and clothing. 

Tips for building your civilian budget:

1. Track your current spending for 30 days.
2. List all expenses currently covered by military benefits.
3. Research civilian costs in your target location.
4. Build in a buffer for unexpected expenses.
5. Review and adjust your budget regularly throughout the transition process.

3. Advancing Your Education and Job Skills

Starting a successful education journey begins with setting clear goals. Consider where you want to be in your civilian career, then identify the education or training you’ll need. Many Veterans find success through various educational routes: 

• 4-year universities that offer comprehensive degree programs.
• Community colleges that provide flexibility and career training.
• Technical schools and apprenticeship programs that offer hands-on learning experiences.
• Professional certification courses that can help you qualify for specific careers. 
• On-the-job training programs that combine learning with earning.

Veterans can also apply for the GI Bill to receive some coverage for higher education expenses. This can include college tuition and fees, monthly housing allowance, books, exam fees and tutoring. You can also use your benefits for many types of vocational training. 

The VA offers several education programs to support your learning journey:

• Post-9/11 GI Bill and Montgomery GI Bill. These offer core education benefits.
• Yellow Ribbon Program. This program can help cover costs at private institutions. 
• VET TEC. This offers vocational training for those interested in technology careers.
• VR&E. This offers support for Veterans with service-connected disabilities.

You can also take part in programs like the Tuition Assistance Top-Up to supplement your benefits. And if you’re a military spouse, the Military Spouse Career Advancement Accounts (MyCAA) program can help fund your education, too.

4. Shaping a Career After Military Service

The military helps servicemembers develop skills that civilian employers value. Here are some tips to help you put them to use:

1. Identify your value. Map out all your leadership roles and technical skills, such as IT, logistics or maintenance. Consider soft skills as well, such as problem-solving, adaptability and teamwork.
2. Speak like a civilian. Transform your military experience into business language that resonates with employers. Update your resume and LinkedIn profile to highlight your achievements without using military jargon.
3. Build your network. Research Veteran-friendly companies, connect with Veterans who've successfully transitioned, join professional associations, attend job fairs and consider other roles that help you gain civilian experience.
4. Master the interview. Study each company's culture and values. Practice sharing your military experience and ask thoughtful questions about growth opportunities and team dynamics.

Explore alternative career paths

While many Veterans transition to traditional corporate roles, there are other rewarding career paths to consider. Here are some alternative options where you may be able to leverage your military experience:

• Start your own business. Many Veterans have become successful entrepreneurs with help from the VA’s programs for Veteran business owners. Navy Federal also offers Veteran business resources. 
• Federal employment. Your Veteran status can give you preference for many federal jobs.
• Transitional programs. Consider programs specifically designed to help Veterans enter civilian careers. This includes the Warrior Training Advancement Course (WARTAC), the DoD’s SkillBridge internships, Veterans Job Mission partnerships and vocational rehabilitation programs.

5. Establishing Your New Home Base

Finding housing is one of the most important things you’ll need to navigate during your military transition. If you’re looking to own a home, a VA home loan can be a powerful tool. VA loans generally offer low interest rates and can come with other benefits:

• No down payment required in most cases.
• No private mortgage insurance (PMI).
• Flexible credit requirements.
• Lower closing costs.
• No prepayment penalties.

Special housing programs for Veterans

For Veterans facing housing challenges, the VA’s homeless prevention programs provide emergency support, housing vouchers and connections to local resources. Reaching out for help early can prevent housing issues later.

The VA also offers additional housing support for Veterans with service-connected disabilities:

• Specially Adapted Housing (SAH) grants. These help Veterans modify homes for accessibility.
• Special Housing Adaptation (SHA) grants. These assist Veterans with specific home modifications.
• Temporary Residence Adaptation (TRA) grants. Grants that help Veterans temporarily living in family members’ homes.

Choosing where to live after leaving the military

Consider factors beyond just housing costs when searching for housing. Look at the job market in your target industry, comparing salaries and the cost of living. If you have a family, consider the quality of schools and other community resources.

For those with health concerns, access to nearby VA healthcare facilities can influence where you choose to live. Your proximity to family and other support networks is also important.

6. Taking Care of Your Health and Wellness

You have several good healthcare options to choose from with TRICARE’s Transitional Assistance Management Program (TAMP). This program provides 180 days of coverage after separation, giving you time to arrange your long-term healthcare plan. Here are some ways it may help cover your healthcare:

• A new employer’s health insurance.
• Your spouse’s health plan.
• The VA healthcare system.
• TRICARE Reserve Select (if joining the Reserves).
• The Continued Health Care Benefit Program (CHCBP).

Supporting your mental health

The readjustment to civilian life can be stressful for Veterans. Fortunately, the U.S. Department of Veterans Affairs offers many resources to support your mental health, including: 

• Veterans Crisis Line. This connects you with caring, qualified responders any time. You can call 988 and Press 1, text 8h38255 or chat online.
• VA’s Transition and Care Management Program. This program can help you navigate both healthcare and mental health services.
• VA Mental Health Services. The VA offers in-person and telehealth care. Local-area Vet Centers also provide community-based counseling.
• Military OneSource. This program offers free, nonmedical counseling for up to a year after separation.

Seeking support for your health is an investment in your wellbeing. Seek out professional resources to help you understand your Veterans’ benefits and find the right healthcare options.

7. Securing Your Financial Future

Planning for long-term financial security is a crucial part of your military transition. Here are some tips to help you build a solid foundation.

Life insurance after military service

When service members leave the military, their Servicemembers’ Group Life Insurance (SGLI) coverage will continue for 120 days after separation at no cost. During this period, you can convert to Veterans’ Group Life Insurance (VGLI). You’ll have one year and 120 days after separation to apply for VGLI, but waiting longer than 240 days requires passing a health exam.

Understanding your retirement benefits

Your military retirement benefits are an important part of your financial future. If you’ve earned a military pension, you’ll receive monthly payments for life. The amount depends on your years of service, your retirement base pay and which retirement system you’re under (legacy, BRS or disability). 

• If you’re a career service member retiring after 20+ years, your pension provides a strong retirement foundation. You may receive 40-100% of your base pay (depending on years served), cost of living adjustments to keep pace with inflation and survivor benefits options for your family.
• If you’re retiring with a service-connected disability rating of 30% or higher, you may qualify for Chapter 61 disability retirement benefits and VA disability compensation.

Managing your Thrift Savings Plan and retirement savings

With a Thrift Savings Plan (TSP), you have the option to keep your money, roll it over to a civilian employer’s 401(k) or transfer it to an Individual Retirement Account (IRA). Building on that foundation with smart civilian financial planning can help create long-term security. We also encourage you to factor the following into your retirement planning strategy:

• Social Security benefits
• Personal savings and investments
• Civilian retirement accounts (if available through your new employer)

Understanding your new tax situation

Military service includes tax advantages that won’t continue in civilian life, such as the tax-free BAH, BAS and combat zone pay. In civilian life, most of your income will be taxable. Consider working with a tax professional who understands military benefits during your transition year. The year you leave service needs extra attention due to a few factors:

• You’ll have both military and civilian W-2s.
• Your tax-free allowances will end.
• You might have deductible moving or job-hunting expenses.
• Your state tax situation might change.

Protecting your financial legacy

Don’t forget to update beneficiary information on all accounts and policies. Review and update your will or estate plan regularly. Explore survivor benefit options for your military pension and consider setting up powers of attorney as part of your estate planning.

Find Support for Transitioning from Military to Civilian Life

Navy Federal is proud to be your financial partner while you’re serving and after. Our team understands the unique challenges and opportunities that come with transition from serving the military community for over 90 years. 

We can help support you to reach your financial goals as an active duty service member or Veteran. Explore our resources on Military Life to help you make the most of your benefits.