Military retirement is often described as "secure."
Pension. TSP. Tricare. VA benefits.
On paper, the structure looks strong.
In practice, the stress rarely comes from a lack of benefits. It comes from how decisions interact once the uniform comes off.
These scenarios are written for senior military officers approaching retirement — officers who have built a strong foundation and now face the structural decisions that determine long-term outcomes.
Why This Paper Exists
This white paper walks through three realistic officer retirement scenarios:
- Scenario 1 — 20-Year LtCol Navigating income fragility and underwriting risk during transition.
- Scenario 2 — Retiring Colonel Choosing structured term replacement instead of SBP.
- Scenario 3 — Major General Designing liquidity and estate efficiency at scale.
The goal is not to prescribe outcomes. It is to demonstrate how experienced retirement planning evaluates:
- Survivor income tradeoffs
- SBP vs term vs permanent insurance
- TSP rollover decisions
- Disability exposure during career transition
- Liquidity risk
- Estate burden under stress
Rank changes the size of the numbers.
Circumstances determine the shape of the plan.
What You'll See Inside
This paper illustrates:
- The real annual cost of SBP — and what it actually produces
- When tiered term replacement can be more efficient
- Why tobacco classification changes survivor math
- How TSP simplicity can be an advantage — or a constraint
- When universal life becomes infrastructure, not income replacement
- Why disability risk often exceeds mortality risk in the first 5–7 years
These are not product discussions.
They are decision-structure discussions.
How This Fits Into the ILS Financial Framework
This white paper complements the core research pillars available in the ILS Briefing Room:
- High-Income Blind Spots Understanding where complexity quietly compounds.
- Portfolio Design vs. Allocation Why structure often matters more than selection.
- What Are You Paying For in Financial Advice? Understanding advisory fees, incentives, and value alignment.
- How to Choose a Financial Advisor Evaluating advice models, incentives, and fiduciary alignment.
If You're Within 3 Years of Retirement
The most important question is not:
"Should I elect SBP?"
It is:
"How do all of my decisions interact if something doesn't go as planned?"
That is the conversation this paper is designed to start. If you're approaching this transition and want to work through it with someone who has built a practice around it, the next step is a fit meeting.