Ready to start a new chapter in your life? Look at this list of things you'll want to consider when getting ready for civilian life.
Article: 12 minutes
Updated: May 22, 2026 Published: June 30, 2022
By: USAA Reviewed by: Editorial contributors
Leaving the military can be a big change. Understanding upcoming financial changes, preparing for a civilian career, and learning about post-military healthcare can make the transition easier.
Thank you for your military service, and congratulations as you embark on the next phase of your life. Whether you completed one tour or are wrapping up a 20-year career, our country owes you a debt of gratitude.
Be prepared: The learning curve when returning to civilian life can be steep.
Service members often need help figuring out what to do when leaving the military. To help you get started, here's a list of 15 things you can do to make the transition process easier as you're transitioning to life as a civilian.
When transitioning from military to civilian life, veterans can face job search costs, delayed income and unexpected expenses from their final PCS. This is why it can be helpful to have a transition fund of six to twelve months of essential living expenses.
This transition fund is in addition to your emergency fund. It's meant to help ease the financial shift into to civilian life.
Anything left in your transition fund after you’re fully settled into your new normal can be used to help pay down debt, be a down payment for a home or help you achieve other financial goals, like retirement or funding your kids' education.
As you prepare to leave the military, it's hard to anticipate whether your civilian job will pay more or less than you make in the military.
You can make your dollars go further and reduce financial stress if you enter this next phase of life with as little debt as possible. Be deliberate as you near transition. Would you rather have $15,000 on hand or use it all to eliminate a $300 per month car payment? If it takes a while to get a job, the cash on hand might be more valuable.
If your debt feels overwhelming, take it step by step and learn how to manage debt and credit responsibly.
When transitioning from military to civilian life, one of the first lessons to learn is how to compare salaries. When you're in the military, your basic housing allowance, or BAH, and your pay are adjusted to match the cost of living to where you're stationed. You may even receive a cost-of-living adjustment on top of your increased BAH.
Civilian companies don't necessarily make those adjustments, which can make it difficult to compare jobs in different locations. Imagine that you're an E-7 retiring after 20 years, and you're currently living in San Antonio, with an annual salary of $100,826. Let's say you get two job offers: One is in Tupelo, Miss., and pays $90,000, and the other is in Honolulu and pays $100,000.
Comparing these jobs can be difficult with so many things to consider, like the cost of insurance, utilities, groceries, and housing, help you compare your options and determine how much you might need to earn to maintain your current lifestyle, try our military separation assessment.
The assessment allows you to input your current military income and location. Then it estimates how much you would need to make as a civilian to maintain your current standard of living in up to three locations across the United States. You can choose the locations you want to compare.
In this example, the military separation assessment reveals that you'd need to make $217,786 a year in Honolulu to maintain the same standard of living you currently have in San Antonio. However, in Tupelo, you would only need to make $97,544 a year. This makes sense since Hawaii has a much higher cost of living than Mississippi. This assessment should help you compare the jobs and decide which one is best for you and your family.
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To help you find your next job, we've teamed up with Recruit Military Open in New Window. See note 1 It helps service members and their spouses transitioning out of the military connect with veteran friendly employers looking for top talent.
Updating your resume is an important part of this process. Civilian employers don't necessarily speak or understand military lingo, so if your resume is filled with military jargon or acronyms to your skills, the HR professional on the receiving end likely doesn't have the knowledge to decipher it.
It's important that you describe your skills and military experience in their language so hiring teams can understand how your abilities can benefit their company. Once you've updated your resume, ask a few civilian friends to look at it. If they can understand your strengths and experience, you're probably headed in the right direction.
If you feel confused when you hear people discussing high-deductible health care plans or using terms like HSA or FSA, you're not alone.
While it may be confusing, having sufficient health care is important for your financial security. Take some time to understand the differences so you can better compare jobs and benefits packages.
It's important to note that if you're not retiring from the military, you'll need to replace TRICARE.
When you leave the military, your Servicemembers' Group Life Insurance, or SGLI, will go away. However, you’ll still probably need life insurance.
Veterans' Group Life Insurance, or VGLI, is one option for veterans struggling to get life insurance due to health risks, but there may be less expensive alternatives for those who are healthier.
If you have a current illness, disease or injury that was caused or worsened by your military service, file a claim for disability pay. Wartime veterans who meet certain requirements may also qualify for veteran pension benefits. Through the Department of Veterans Affairs, or VA, you can find out if you're eligible and submit a claim Open in New Window. See note 1
Suffering from a disability can cost you in ways you may not expect. For example, you may be able to use your disability check to hire help if your injuries or disabilities prevent you from doing them yourself.
It's also hard to predict what types of medical treatments you'll need in the future. Your disability check and VA benefits can help you save on medical expenses down the road.
But the VA disability process can be confusing. The good news is that there are many free services are offered to help veterans navigate the VA disability process, including organizations like:
If you move to a new city, you'll need to update your insurance policies. Some insurance costs are location based, such as auto insurance. Be sure to update your budget to reflect the new insurance premiums.
Speaking of budgets, do you have one?
As your separation date nears and you have a clearer picture of life after the military, where you'll live, your new income, and new or changing expenses, create a new civilian budget.
This budget should reflect the realities of your new situation, such as health care costs and state taxes. Many service members establish residency in states that don't have state income taxes, and when they move, the new taxes are a surprise. Be sure to fully understand your take-home pay.
As you update your budget, remember why you're doing it. The goal is to spend less than you earn; otherwise, you're constantly going into debt or reducing savings. That's why it's more important to prepare your finances for the transition to civilian life.
When you leave the military, ask yourself the following three questions:
Will you leave it where it is or roll it over to another retirement account? Here are five things to consider before moving your TSP.
This question applies if you're separating under the Blended Retirement System. You want to understand the pros and cons.
If someone will be financially disadvantaged in the case of your death, the Survivor Benefit Plan helps ensure that a portion of your military retirement paycheck passes to them. It can be a way to provide financially for those left behind.
If you're retiring from the National Guard or Reserve, your decision is a bit more complicated because of the "gray period," or the time between when you retire and when you turn 60. Make sure you understand your Reserve Component Survivor Benefit Plan choices.
Depending on your civilian career, you may want to go back to school to learn a few additional skills. Remember that you earned GI Bill benefits. Take some time before you leave the military to learn how you can maximize your education benefits Open in New Window. See note 1
Don't underestimate the power of networking; you never know where it may lead.
There's a good chance you've met quite a few people during your military career. Reach out to the ones you've lost touch with and keep in contact with your current associates. They can help you with professional networking, as well as offer personal advice and support on relocating and transitioning.
Consider joining professional networking sites, like LinkedIn, that can help you stay current on news in your industry or desired field.
And in addition to networking, be sure to keep in touch with your military mentors. Maintaining these relationships will help you feel a sense of belonging during your transition.
Even though you’re leaving active duty, you might not be quite ready to totally disconnect from the military. You may be able to balance more time with family and your military career by joining the National Guard or the Reserve.
Not only do you get the joy of continued service, but serving in the Reserves or National Guard also provides the following benefits:
Check out these 9 must knows about going into the National Guard or Reserves.
Returning to civilian life is a challenge not only for military members, but also for military spouses and families. If you're moving, your children may be leaving school friends, and your spouse may be leaving a network of his or her own.
Some departing service members choose to live near their former installations, but that's not always practical. Prioritize keeping up with friends via calls and texts, emails, social media and scheduled meetups. Also, consider maintaining a postmilitary support group to learn about education and job opportunities in the civilian world.
One of the biggest challenges you might face when entering the civilian workforce is a surprising language barrier. You know all about LES, TDY, PME, PCS and DITY, but do you know PTO? That's "paid time off" or "leave" in the military.
Don’t be intimidated by terms you don’t understand in your new workplace. Talk to a peer and ask them to interpret things. Pretty soon, you’ll find yourself speaking their language.
Both at work and at home, focus on the positives as you shift from your military to civilian life. More family time, a regular schedule, no deployments, and the ability to set down roots that won't be pulled up every two to three years are all good things.
Start now, and you'll have plenty of time to prepare for a smooth transition.
Create a personalized separation assessment and checklist, explore your options for health insurance and get help finding a civilian job.