Finding your happily ever after in retirement: 5 steps to take now to succeed in your future

Smart financial moves today for a stress-free tomorrow.

By Bethany Bayless

Published Mar 19, 2025 8:00 AM PDT

Portrait of U.S. military veteran on front porch of suburban home

This article was sponsored by Navy Federal Credit Union. Navy Federal Credit Union is federally insured by NCUA. Investment products are not offered by the credit union, and aren’t guaranteed.

Retirement should be a time of relaxation, adventure and financial security—but achieving that dream requires careful planning. For those who have served in the military, transitioning to civilian life and planning for retirement comes with unique challenges and opportunities. The good news? Taking a few smart steps today can set you up for a happy and stress-free future.

Here are five essential steps to ensure your retirement years are truly golden:

1. Start or maximize your IRA contributions

Even if you have a 401(k) or a Thrift Savings Plan (TSP), opening and contributing to an Individual Retirement Account (IRA) can significantly boost your retirement savings. IRAs offer tax advantages that help your money grow more efficiently over time.

  • Traditional IRA: Contributions may be tax-deductible, lowering your taxable income now, but withdrawals in retirement are taxed as ordinary income.
  • Roth IRA: Contributions are made with after-tax dollars, meaning withdrawals in retirement (including earnings) are tax-free, provided certain conditions are met.

Which one is right for you? If you anticipate being in a lower tax bracket in retirement, a traditional IRA may be beneficial. If you expect higher tax rates or want tax-free income later, a Roth IRA could be the better option. Make sure you consult the IRS website and/or a tax advisor for your specific circumstances and contribution limits or tax considerations. The deadline to contribute for the 2024 tax year is April 15, 2025—make sure you don’t wait too long to make the most of this opportunity!

2. Take advantage of Navy Federal Investment Service’s Digital Investor

Investing wisely is key to growing your retirement funds but knowing where to put your money can be a challenge. The good news is there are great tools available to assist you in your investing journey. For example, Navy Federal Investment Services offers Digital Investor, a convenient, easy-to-use platform for managing your IRA investments. Whether you’re a beginner or an experienced investor, this tool helps you build a diversified portfolio tailored to your goals. With Digital Investor, you can:

  • Access a variety of investment options.
  • Automate contributions and investment strategies.
  • Monitor and adjust your portfolio over time.

This smart investment solution makes planning for retirement simple, so you can focus on enjoying life instead of worrying about finances.

3. Maximize employer-sponsored retirement plans

Make sure you are making the most of matching for your contributions. If you are investing in a 401(k) or TSP, contribute as much as possible to max out the matching options. A matching contribution is free money that can accelerate your retirement savings. However, these accounts alone may not be enough, which makes an IRA an excellent supplemental investment option. Contact a financial advisor or reach out to the Family Readiness Center on any installation to get financial advice tailored to your specific investing needs.

4. Plan for the right retirement location

Where you retire can have a big impact on your financial well-being. Consider factors like cost of living, tax policies, healthcare access, climate and proximity to family or friends. Certain states offer tax benefits for retirees, such as no state income tax on retirement fund or exemptions on Social Security and pension income.

Additionally, think about access to quality healthcare facilities, which become more crucial as you age. If you’re a military retiree, researching areas with strong VA hospital systems can be a valuable part of your planning. Take into account the lifestyle you want in retirement—whether it’s an active community, a quiet rural setting or a city with cultural amenities. Planning ahead ensures you settle in a place that meets both your financial and personal needs for a fulfilling retirement.

5. Consult a tax advisor and stay informed

Retirement planning is not one-size-fits-all. IRS rules, contribution limits and tax implications can change, so staying informed is crucial. Consulting a financial or tax advisor can help you navigate your unique circumstances, including understanding how Social Security benefits, pensions and investment withdrawals affect your taxable income.

Additionally, reviewing the IRS website regularly ensures you remain aware of updates on contribution limits, required minimum distributions (RMDs) and other tax-related changes that may impact your retirement savings. Proactive planning with a knowledgeable advisor can help you make informed decisions that maximize your financial security and allow you to enjoy your golden years stress-free.

By taking these five steps today, you’ll be well on your way to a retirement that’s as rewarding and fulfilling as you’ve always dreamed. Start planning now, and let your future self thank you later.

Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of Navy Federal Financial Group, LLC (NFFG). These products may involve investment risk, including possible loss of principal.