Military spouses are the unsung heroes of service life. They manage households, support their families, work or often put their own careers on hold to follow their service members across the country or around the world. In the shuffle of deployments, PCS moves, job changes and raising kids, one crucial thing often gets left behind -- their own retirement savings.
You shouldn't count solely on your service member's retirement to build your financial future. Fortunately for military spouses, you can still save for your own retirement, even with challenges such as unemployment and underemployment that come with military life. Whether you're working full time, part time or at all, military spouses have ways to save for their future.
Read Next: How to Prepare Financially for the Transition to Civilian Life
Why Milspouses Should Save for Retirement
Military spouses should prioritize having their own retirement savings for several important reasons:
- Retirement accounts are individual, meaning your spouse's Thrift Savings Plan (TSP) account or pension doesn't automatically include you.
- Life is unpredictable, and having your own savings offers protection in case of divorce or major life changes.
- Dual retirement savings supercharge your financial goals, helping you retire faster with more flexibility.
- You may have access to better benefits, such as employer-sponsored 401(k)s with higher matches or more investment options.
- It reduces financial stress and prepares you if your spouse can't work or retires early.
Start with a Personal IRA
Even if your job doesn't offer a retirement plan, you can open your own Individual Retirement Account (IRA), which allows earned income to be saved for retirement. That means it will stay with you, no matter where you move or if you have an employer retirement plan. There are two main types:
- Traditional IRA: Contributions are tax deductible now, but you'll pay taxes when you withdraw the money in retirement.
- Roth IRA: Contributions are made after taxes, but withdrawals in retirement are tax free.
For 2025, you can contribute up to $7,000 a year to an IRA. If you're 50 or older, you can contribute an additional $1,000 to catch up on your retirement savings. IRAs are a simple way to build long-term savings, no matter where the military sends you.
Use a Spousal IRA if You're Not Working
Military spouses who aren't earning income can still save for retirement through a spousal IRA. If your spouse earns income and you file taxes jointly, you can contribute to an IRA in your name. This keeps your retirement savings on track, even during career breaks for things such as raising children, pursuing education or deployments.
Take Advantage of Employer Retirement Plans
If you're working for an employer that offers a TSP, 401(k) or 403(b) plan, take full advantage, especially if the employer offers matching contributions. Your civilian retirement benefits may provide more than your service member's retirement benefits. Just make sure you always contribute enough to get the full employer match. It's free money, so you don't want to miss out on it!
Embrace Self-Employment Retirement Savings
Many military spouses run their own businesses, freelance or work as contractors. If that's you, powerful retirement tools are designed just for self-employed people:
- Solo 401(k): Allows higher contributions if you're self-employed with no employees.
- Simplified Employee Pension (SEP) IRA: Easier to manage, based on a percentage of your self-employment income.
One of these self-employed retirement savings options can boost your savings power, especially during high-earning years.
What to Do with Multiple 401(k)s
Frequent job changes often leave military spouses with multiple old 401(k) accounts. It leaves milspouses wondering what they should do with all of them. Letting them sit unmanaged can lead to higher fees, forgotten assets or poor investment performance.
Here's what you can do with them:
- Track them down using old employer records or tools such as the Retirement Savings Lost and Found Database.
- Consolidate them into a single IRA or current 401(k) to simplify management.
- Evaluate each plan before moving it. Some old plans may have great investment options or low fees.
- Avoid cashing out old accounts. Early withdrawals usually mean taxes, penalties and lost growth.
- Leave them alone if they have low fees and great performance. One or two may not need to be rolled into your current employer-sponsored retirement plan.
Automate Your Savings
Whether you're contributing to an IRA, a 401(k) or a Solo 401(k), automation is key. Set up monthly transfers to your retirement account so you stay consistent, even during busy seasons or PCS chaos. Thanks to the power of compound interest, even $25 a month adds up over time.
Your Roth Opportunities
Because military income includes tax-free allowances such as the Basic Allowance for Housing (BAH) and Basic Allowance for Subsistence (BAS), your taxable income may be lower than your civilian peers, making this a good time to take advantage of Roth IRA contributions. You pay taxes now when your rate is low and withdraw tax free in retirement.
Review and Adjust Regularly
Your life will keep changing, and so will your income and expenses. Make it a habit to review your retirement accounts at least once a year. Increase contributions when possible and make sure your investments still match your long-term goals.
Retirement Is Personal
Retirement accounts are individual by design. That means you can't rely solely on your spouse's military pension, TSP or benefits. Life happens. Divorce, career changes or health challenges can derail joint plans. When you build your own retirement savings, you create financial security, independence and options for yourself.
Saving for retirement as a military spouse may not always be easy, but it is possible and worth the work you will put in. Whether you're earning an income now or not, there are tools to help you grow your own retirement savings. Just start small, stay consistent and keep going. Your future self will thank you!
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