While a military retirement pension plan is normally designed to provide income over a long period of time, a better option may be to take a lump sum payment instead. Those that are in the armed forces give the ultimate sacrifice to their country by risking their lives to defend it. While those in the armed forces are taking a lot of risk, those that spend even either just a few years or their entire careers in the military can be well compensated. While base salaries may not always be that high, military veterans are normally compensated through a retirement pension plan.
A lump sum payment is a great way to get your retirement proceeds at one time. Rather than receiving a check every month, getting a lump sum payout will give you one check when you need it. While there are some risks that come with taking a lump sum payout from a military pension, as long as you make decisions that will not negatively affect your specific situation, taking a lump sum payout could provide a number of different advantages.
While you are in the military, you likely have most of your personal expenses paid for. However, if you have debt prior to joining, or have a family, there is a good chance that you have accumulated some high-interest debt while you were still active in the military. A few reasons to cash in on military lump sum pension payment are:
When you take a lump sum payout for a military pension, you could use the money for anything you see fit. It is your money, you earned it, use it when you want.