Money After the Military

It’s been 20 years since I left active duty, but as a Reservist, I often speak with service members who are eager to separate from the military and start a civilian career. In fact, according to the Government Accounting Office, more than 200,000 members leave the military each year. While some will find the “grass is greener” on the civilian side, others will face financial challenges from adjusting to their new income.

Dollar -for-dollar, military pay and benefits usually beat what civilian employers offer for similar jobs. To replace your active-duty net pay you’ll need a higher gross pay from your civilian employer to compensate for the loss of tax-free benefits and additional cost of health insurance premiums. As a result, many veterans find themselves looking for a second job to supplement their income.

While it might not be an option for everyone, joining the Reserves or National Guard can be a great way to maintain ties to the military and supplement your income.

Hourly Pay

The Bureau of Labor Statistics reported the national average for hourly pay of part-time civilian employees:

• $19.33 (non-union)
• $37.14 (union)

Here’s how Reserve pay stacks up:

• O-3 w/6 years $59.44
• E-6 w/8 years $35.44
• E-5 w/6 years $30.02

Here are eight great benefits to continuing to serve part time:

1. Reserve pay is predictable and higher than comparable part-time jobs.
2. Bonuses and other career financial incentives are available.
3. Continue building your retirement income with a pension or investing in the Thrift Savings Plan.
4. Take advantage of military benefits, like tax-free shopping or low-cost health care.
5. Hone the leadership and job skills you learned on active duty and gain more experience.
6. Recharge your career with education opportunities.
7. Take advantage of opportunities to travel worldwide to broaden your horizons and life experience.
8. Network with peers to advance your civilian career and find jobs nationwide.

Joining the Reserve Component or National Guard offers flexibility, camaraderie, and a chance to straddle both military and civilian worlds. If you’re looking for a way to serve your country, enhance your career, and grow as an individual, this option might just be the perfect fit for you.

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