Many individuals go into the military but do not retire or serve a full 20 years, the time usually required to retire and have a pension. Those leaving the service before that time are left without a pension. The Thrift Savings Plan (TSP) is estimated to add 250,000 military personnel each year to the rolls starting in 2018. New troops to the military will be automatically signed up to the TSP starting January 1, 2018. This will allow the troops the same level of participation as other TSP participants.
More than 83% of military personnel do not have retirement and by participating in the TSP, the retirement dynamics could change for military personnel who certainly need security in retirement. The TSP has more than 4.7 million participants. Adding the military personnel to its rolls will more than strengthen the TSP and give the military the kind of added protection they need in retirement.
Often those military personnel who do have retirement of 20 years are young enough to go into another career. They receive a monthly pension upon retirement or have the option of receiving a lump sum. Many times troops use the lump sum money to make investments or purchases that might not be wise and find themselves still without the protection needed in retirement.
It is a good time for the Department of Defense to begin educating the military forces about the TSP and how it can help to ensure a safe and secure retirement future.
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