Retirement should be a time of relaxation and enjoyment, a reward for years of hard work. However, many people worry about their financial stability during this period. Will you have enough to maintain your lifestyle, cover medical expenses, and enjoy your golden years? The good news is, with the right strategies, you can maximize your retirement pay and secure a comfortable future. Curious to know which ones will secure your financial bliss? Keep reading to unlock the secrets to a worry-free retirement!
You Need to Understand Your Retirement Pay
Retirement pay is more than just your pension. It includes all the income you receive after you stop working, such as Social Security, investments, and any allotments you’ve set up. Allotments are often known as payroll deductions, allowing you to pay bills, insurance premiums, mortgages, etc., directly out of your retired pay.
Before setting up an allotment, ensure you have enough disposable pay after taxes and other deductions to cover it. If not, you may not receive your pay, or your allotment might be underpaid. You can have a maximum of six discretionary allotments, but certain allotments are considered non-discretionary and do not count toward your maximum of six.
Managing Your Allotments
Managing your allotments effectively is crucial to maximizing your retirement pay. Electronic Funds Transfer (EFT) allotments to financial institutions can be started, stopped, or changed in myPay. Non-EFT allotments for your mortgage payments can be changed or stopped in myPay. Certain insurance and certain charitable contributions can also be stopped or changed in myPay.
To start a Home Loan, Navy Mutual Aid Service, Charity, or Insurance allotment, please see the charity or institution where you desire to start an allotment for more information on how to complete this action. Remember, once you have entered an allotment into myPay, allow time for the transaction to post. Entering the allotment more than once could cause the system to set up two allotments instead of one, causing overpayments to your allotments.
Using the DD 2558 Form
You can also start, stop, or change an EFT allotment using the DD 2558 Form, available on the Forms webpage. Retired & Annuitant Pay created a new option for submitting requests to start, stop, or change allotments using the DD Form 2558. To make an allotment request, complete and sign the DD Form 2558, Authorization to Start, Stop, or Change an Allotment.
You can submit the form via the askDFAS online upload tool on DFAS.mil, and you will also receive status notifications as the form moves through the processing cycle. You can also mail or fax completed DD 2558 forms to the Defense Finance and Accounting Service.
Understanding Allotment Exceptions
The Department of Defense has an agreement with several agencies that prevents DFAS from starting, stopping, or changing any allotments paid to them. It’s important to understand these exceptions when planning your retirement pay.
Also, note that some allotments cannot be transferred forward from active duty to retirement pay. Make sure to read more about these allotments to avoid any surprises when you retire.
Managing Insurance Allotments
Insurance allotments are a crucial part of your retirement pay. They can help cover medical expenses and provide financial security. It’s essential to understand how to manage these allotments effectively to maximize your retirement pay.
Remember, allotments take time to show up in myPay. You may not see your request until you receive your next Retiree Account Statement. If you have questions about managing your allotment, don’t hesitate to call for assistance.
Secure Your Golden Years
Remember, it’s never too early to start planning for retirement. The more prepared you are, the more you can relax and enjoy your golden years.
So, start today. Take control of your retirement pay and maximize your income. Your future self will thank you.
