Military Benefits: Insider Guide for Active Duty, Retirees, and Veterans

• Active duty service members and Veterans receive many benefits over the course of their military service and after.
• Some active duty benefits start immediately, such as pay, healthcare coverage, insurance, and allowances like BAH and BAS. However, some benefits only become eligible after serving for some time, such as education and retirement benefits.
• Active duty benefits differ from Veteran benefits, which include retirement, TRICARE, VA healthcare, and education benefits. However, Veterans no longer receive pay or housing allowances, with the exception of when using GI Bill benefits.

While some benefits are available to both active duty and Veteran service members, it’s important to know how these benefits change through the course of your military career. Some start on day one, while others take time to become eligible. Veterans who retire typically receive more benefits than those who separate before being eligible for full retirement.

When on active duty status, you are a full-time member of the Armed Forces in the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard. While there are specific benefits unique to each service, many benefits are the same across all military branches.

Once you join the military, you start receiving benefits right away, including pay, healthcare coverage, and other incentives. If you have dependents in your official military record, benefits often cover them as well.

These benefits continue throughout your time on active duty until you retire or separate from the military. The only exception occurs if you are in legal trouble. In some cases, the military court system can reduce or even withhold your pay, though benefits like healthcare coverage remain.

The most clear-cut benefits available to military members come in the form of pay and allowances. Each member of the military is assigned a pay grade from E1 all the way up through O10, which parallels the rank structure and describes where you are on the pay scale. As you rise through the ranks, you get paid more. These opportunities for advancement are based on exams, performance, and selection.

Your pay is determined by both pay grade and time in service. Even if you don’t advance to the next pay grade, you’ll still get a slight bump in pay when reaching certain time milestones. Some ranks have a maximum allowable time, however, and you will have to leave the military if you fail to promote.

If you have certain jobs or are in certain parts of the world, you can have special pay added as well. Examples include flight pay, hazardous duty pay, and family separation pay. If you serve in certain combat zones, your pay could be tax-free while in that location. These are situation-dependent and typically limited to the specific circumstances, such as being deployed.

Once you join the military, you immediately begin receiving healthcare coverage. In fact, most boot camp and indoc programs include an introduction to the military medical care available. During your time in the military, you are required to complete routine physicals, dental checkups, and more.

• TRICARE: Military members and their families are completely covered for healthcare under TRICARE. Some duty stations have designated military medical physicians and healthcare workers who provide care. Known as a Military Treatment Facility (MTF), these can be small clinics all the way up to large hospitals. If you need specialized care, you’ll be referred to a specialist covered under TRICARE.
  • If you do not have access to a military medical treatment facility, you can still receive medical care from civilian doctors who accept TRICARE. Not all doctors work with TRICARE, so make sure that they are in the TRICARE network beforehand.
  • Dependent family members can get care at some MTFs, but not all work with civilians. If your family member is required to go to a civilian facility, they are still fully covered under TRICARE. If they elect to get civilian care out of choice, they pay a small copay. TRICARE includes flexible plans, but you are restricted on when you can enroll or change plans.
• Dental and Vision Coverage: You have to maintain a clean dental record and keep up with vision requirements to be ready to focus on the military mission. Dental and vision coverage is separate from TRICARE but still available in a similar structure.
• SGLI and Traumatic Injury Protection: Getting life insurance coverage as a member of the armed forces can be challenging, so the Servicemembers’ Group Life Insurance (SGLI) is available. In some cases, dependent family members are eligible for coverage as well. Military members can also receive life insurance to cover traumatic injuries and other situations unique to military members.

Education is a big part of career growth and development in the military, so benefits to fund classes and training programs are a big part of the provided benefits, especially for younger service members. Many of these programs are available early during active duty military service and are a great way to further your own professional development while letting the military foot the bill.

• Post-9/11 GI Bill: The Post-9/11 GI Bill benefit, which covers tuition, books, and even housing, is available after only 90 days of active duty service. To be eligible, you must have served in the military after September 10, 2001. Military members can get a percentage of the allotment for tuition and books. The full entitlement requires longer service, and if you want to transfer this benefit to a dependent family member, you have to commit to serving in the military for additional time.
• Montgomery GI Bill: The Montgomery GI Bill is similar and covers tuition and books. However, it is provided as a fixed amount. Unlike the Post-9/11 GI Bill, however, it is not transferable to family members.
• Tuition Assistance: Tuition assistance provides funding for advanced education courses through a reimbursement program, although you also incur extra required service time if you use this benefit.
• Military Schooling and Credentialing Assistance: The military also has its own higher education institutions, such as the Naval Postgraduate School and the Air Force Institute of Technology. If you are eligible and qualify for these training programs, you can be assigned to complete an advanced degree while still receiving your active duty military pay. If advanced training and certifications are required for your role or specialty, you may be approved to take prep courses and even have professional exam fees covered by the military.
• DANTES: The Defense Activity for Nontraditional Education Support (DANTES) provides both education and career guidance for military members while still on active duty. This includes approving college credits for passing standardized tests.

In addition to base pay, military members also receive a Basic Allowance for Subsistence (BAS) and a Basic Allowance for Housing (BAH). These are allowances, not pay, so they are not included in taxable income. These benefits can greatly increase the amount of money you take home each month without increasing what you owe in taxes.

The exact rate depends on your zip code and the cost of living in that area. Some locations receive higher housing allowances than others. You also receive more as you advance to a higher pay grade.

For each pay grade, there are two rates: one for military members with dependents and one for those without dependents. To receive the with-dependents rate, which is slightly higher, your dependents must be listed in your official military record.

In addition to getting money to help pay for living expenses, you can purchase many of these items for lower prices using the commissary and exchange stores. These can provide substantial savings on groceries (at the commissary) and household goods (at the exchange). If you’re looking for deals on recreation, the Morale, Welfare, and Recreation (MWR) office has connections to the local community. You can get discounted tickets, rentals for sporting equipment, and participate in fun, sponsored events and activities.

Each branch of the military has a legal services specialty. These personnel are available to active duty military members and their families for routine legal matters, including drawing up wills and powers of attorney. At larger commands and installations, there is often a designated office. At smaller commands, you may have to travel to a central office that has legal services, human resources, housing, and other support offices.

Some of the benefits available to active duty military members come from private companies. These include military discounts on products and services, early boarding for flights, and freebies on holidays like Military Appreciation Day.

Planning for retirement in the military is also different than many other industries. Some members are part of a traditional pension system that provides 50% of their base pay the last three years of their military career. But they must complete at least 20 years of active duty service for this benefit. The Thrift Savings Plan (TSP) is more comparable to a 401(k) with military members contributing while they are on active duty. The blended retirement system is a combination of both pension-style and 401(k)-style retirement options.

The Department of Veterans Affairs also has benefits, including housing programs, funding for school, and others available to those who served on active duty.

Once you retire or separate from the active duty military, you transition to Veteran status. While many benefits are available to Veterans, they differ from those you likely received while on active duty. It’s important to understand just what to expect as a Veteran because this can impact your timeline for retirement and how you plan for a second career.

• Retirement: If you stay on active duty for less than 20 years, you will not receive a military pension in most cases. However, you can still receive retirement benefits from your Thrift Savings Plan, but the time to take out money comes with restrictions.
• TRICARE and VA Healthcare: Retirement comes with a pension as well as healthcare coverage. TRICARE for Life kicks in once you are eligible for Medicare. Veterans can get healthcare coverage through the Department of Veterans Affairs, typically if separating with at least two years of active duty service or their full initial enlistment time, whichever is shorter.
• Special Pay: Only current military members receive special allowances, such as BAH and BAS, as well as incentive pay. This cut can be quite a bit once you cross over to Veteran status, since BAH and BAS are not used to calculate retirement pension amounts. The exception to this is when using your Post-9/11 GI Bill eligibility. If you are a full-time student attending classes in person, you can get some housing benefits while attending school, even as a Veteran.

Yes, the Post-9/11 GI Bill can be transferred to a spouse or dependent children if the service member commits to an additional service obligation. This must be done while still on active duty and before leaving the military. The Montgomery GI Bill cannot be transferred.

TRICARE covers active duty members and their families. TRICARE for Life is available to military retirees who are eligible for Medicare. It acts as a supplemental insurance alongside Medicare Parts A and B.

Not automatically. Eligibility for VA healthcare depends on factors such as time in service, type of discharge, and current income. Veterans who served at least two years or their full initial enlistment are typically eligible.

Military life comes with its challenges, but there are also plenty of benefits, both tangible and intangible, to joining the military. From a steady paycheck with opportunities for promotion to allowances for housing and expenses, you’ll see many of the financial benefits right away. Money and support for education and buying a home are available after some time in service and may even be available after you leave active duty.

Learn more on our blog about making the most of your benefits while on active duty and as a Veteran.