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After years of service, the prospect of settling down into civilian life can be appealing for many veterans. This is an opportunity to buy a home, spend more time with your loved ones, and enjoy a significantly less stressful lifestyle. Of course, for anyone about to make this change, knowing how to effectively manage your money can be an essential skill. If you want to be able to enjoy your new life with your family to the fullest, financial problems are the last thing you need. If you’re leaving the armed forces and want to be able to seamlessly transition to your new civilian life, seeking professional financial advice can be invaluable. Read on to find out how it can help you.
Many veterans leave the military without being taught about financial matters
Throughout your time in the armed forces, you’ve probably mastered a wide variety of useful skills. However, a key one that you may not have learned is how to manage your money. This is a very common problem that many veterans face when they leave the military. It’s also especially true for those who joined the armed forces at a young age and so don’t have much experience of the responsibilities of civilian life. Furthermore, if your support network mostly consists of other ex-servicemen and women, they might be in the same boat as you when it comes to financial knowledge. While it might be tempting to put your best foot forward and give it a go anyway, this approach could cause you problems. If you’ve ever tried DIY and something has gone wrong, you’ll know how expensive it can be to make a mistake. This is where speaking to an expert can benefit you. Working with a financial planner can help you to make properly informed decisions with your money, enabling you to grow and manage it effectively in the long term.
Seeking financial advice can help when making important decisions regarding your pension
One of the biggest issues that many ex-servicemen and women face when leaving the armed forces is how to manage their pension. As you may know, when you leave the armed forces, you will be asked how you want to take your pension entitlements, including a monthly pension and a cash lump sum. Typically, you will be given the choice of taking a larger lump sum in exchange for a reduced monthly payment. On the face of it, this can seem very tempting, but it isn’t always the best decision for your long-term wellbeing. In many cases, keeping the larger monthly payment can be better for your financial stability. Despite how important the consequences of this choice can be, many servicemen and women don’t seek professional financial advice. Working with a financial planner while you’re deciding what’s right for you can help you to make a properly informed decision.
Working with a planner can make it easier to access your benefits
Another area of confusion that many veterans often come across when returning to civilian life is working out what benefits you are entitled to for your years of service. For example, veterans and their dependants may be able to claim:
- Child benefit
- Sure Start Maternity Grants
- Jobseekers Allowance
- Armed Forces Independence Payment
- Tax credits
When it comes to claiming these benefits, the application process can sometimes be confusing and often requires you to fill out a hefty stack of paperwork. Working with an adviser can help to take the hassle out of this, making it faster and easier for you.
A planner can help you to build long-term financial stability
Seeking professional advice can also help you to build up long-term financial stability for you and your loved ones. Being able to make an informed decision can be important when it comes to planning your finances. For example, a planner may be able to help you choose the form of financial protection that’s right for you, which can be invaluable for if you ever run into any financial shocks. This can give you a greater sense of security, safe in the knowledge that you can overcome any disruptions that the future may hold. They can also help you to prepare for the future by growing your wealth through investing. For example, they may recommend that you open an Individual Savings Account (ISA) to take advantage of its tax-efficient status. A planner can also provide guidance if you want to set up a Junior ISA on behalf of your children, so that they can have the best possible start when they grow up. When it comes to settling back into civilian life, there can be a lot of things to think about, but seeking professional advice can be invaluable. Working with a financial planner can help you when it comes to making important decisions, giving you greater peace of mind and confidence for the future.
Get in touch
If you’re leaving the armed forces and want to know more about how financial advice can benefit you, we can help. Email us at office@verve-financial.com or call 0330 320 5048.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Tax treatment varies according to individual circumstances and is subject to change.
