Leaving the military? This guide offers resources and solutions to help veterans and their families navigate the challenges of transitioning to civilian life.
Article: 7 minutes
Updated: August 10, 2026 Published: September 30, 2021
By: USAA Reviewed by: Editorial contributors
Transitioning from military to civilian life requires careful planning so you can navigate financial, career and personal changes.
The transition to civilian life can be challenging for many military members. The longer you serve, the more challenging it can be. Many service members face similar struggles after leaving the military, but these tips can help you navigate the transition to civilian life.
Parting ways with the friends you've served with might be the toughest part of leaving the military. Service members enjoy a camaraderie revolving around day-to-day life on the installation and things like Family Days. And spouses often have their own “tribe” of supportive military spouses they’re leaving behind.
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 finding a post-military support group to learn about education and job opportunities in the civilian world.
Service members have skills and talents that are highly valued in the workplace, like managing and leading people.
Whether you served four years or 20, you've learned about integrity, leadership, accountability and organization, as well as how to strive for perfection. These traits will be important to civilian employers, but they're also invaluable to your new civilian community.
To help transitioning military members and their spouses find their next career, we have teamed up with RecruitMilitary Open in New Window. Their goal is to connect employers with top talent like you. Also, you can always consider a career with USAA.
Pursuing your dream job might mean going back to school, especially if you require additional skills to be qualified or more competitive in your chosen industry. One of the best ways to fund your education is to use your benefits from the Post-9/11 GI Bill Open in New Window.
During your time in the military, you may have worked hard to establish a solid financial foundation. As you enter post-military life, you'll want to build on that foundation. Certain aspects of your finances will require a different approach now that you're a civilian. These tips can help you make sure you're covered.
Even if your civilian salary is equal to that of your military salary, your take-home pay will likely decrease, meaning you will have less disposable income. That can happen for a few reasons:
This means that as you adjust to civilian life, you’ll also need to adjust your budget. If you're making more post-military, use this surplus as an opportunity to pay down debt or build your savings. This could be a better option than simply enhancing your lifestyle.
If you're earning less, adjust your budget to reduce expenses or find additional ways to earn more money. For example, your spouse might find a job, or you might supplement your income with a side hustle.
After leaving the military, you might find yourself with several job offers in several new locations and offering different salaries. Should you take the $100,000 salary in Alaska or the $75,000 job in Arkansas? How do you know which will be the better financial move? Get help with the decision by using our military separation assessment. It can help you weigh your options and help you determine how much you need to earn as a civilian to maintain your current lifestyle.
Beef up your savings before transitioning from military to civilian life. In case of an employment gap, paycheck delay or unexpected costs, consider having six to 12 months of living expenses saved on top of your emergency fund. This additional savings can cover things like:
Since the transition fund can be a large sum of money, start saving at least two years before your expected transition date. Consider setting aside funds for this purpose by automatically depositing some of your paycheck into a dedicated savings account.
Post-military, you'll lose access to Servicemembers' Group Life Insurance, or SGLI. While there are several ways to replace it, not all are created equal. Your new job might offer group life insurance. But remember: You don't own that policy. If you lose your job, you may lose your life insurance, which can leave your family exposed during a financially difficult time. Think of group life insurance as a supplement to what you already own.
As you leave the military, you'll have the option to take Veterans' Group Life InsuranceOpen in New Window, Also known as VGLI, it is a great option for veterans who:
While VGLI might be a good option for some veterans, it might not be the cheapest long-term option. That’s because VGLI premiums increase in five year age increments. Over time, a policy with fixed premiums might save you money.
Take time to compare all your options to make sure you protect the ones you love with life insurance.
After leaving the military, it’s important to find and maintain good health insurance. But do your research first, as health care plans are diverse and can operate differently from TRICARE.
When you interview for jobs, be aware that some employers provide excellent coverage and others don't. Because health care is expensive, it's wise to weigh your potential employer's plans when deciding between multiple jobs.
Take some time to learn about out-of-pocket medical costs. Medical expenses will be your responsibility in your post-military life. As a service member, your family’s medical care was covered under TRICARE. But as a civilian, the bill for your doctor’s visit or hospital stay comes to you, and those costs can add up quickly. Include them in your budget so you don’t go into debt.
One way to save and then pay for medical expenses is through a health savings account, or HSA. This might be a new term for many military members, so it’s important to understand how an HSA works and if one is right for you.
To help transitioning military members understand their post-military civilian benefits, we created an article that dives into the ins and outs of civilian insurances.
If you have a disability or health condition made worse by your military service, apply for VA disability. You may still have to live with the difficulties of your condition, but at least you won’t have to deal with the stress of medical debt from the treatment of your injury or condition.
Let's also admit that the VA disability process can be confusing. That's why many free services are offered to help veterans navigate the VA disability process by veteran service organizations Open in New Window.
USAA aligns with these Veteran Service Organizations due to our mutual mission of taking care of veterans.
As you leave the military, you have two options for what to do with your hard-earned vacation days: You can either cash them out or take them as terminal leave.
If you're able, we recommend taking them as terminal leave because it puts more money in your pocket. With terminal leave, you also earn BAH, BAS and any special pays you'd normally receive.
On the other hand, if you cash out your leave, you only receive your basic pay for each day.
As you can see from all these considerations, transitioning from military to civilian life isn't as easy as it might seem. However, with adequate education and prep work, you can maintain your solid financial footing with a little less stress.
Create a personalized separation checklist, explore your options for health insurance and get help finding a civilian job.