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Financial Considerations When Leaving the ADF

The transition from Defence into civilian life is a time of major change for Veterans and, as such, can become difficult to navigate. What often makes this transition even more challenging, however, is the financial aspect and implications that can come from it. Luckily, at Nation Service Financial, we want to make the transition from Defence to civilian life as easy and stress-free as possible for veterans while ensuring that you and your family’s future is safeguarded and that you receive what you have earned in your service.

As such, we aim to offer financial literacy training, comprehensive financial planning, and overall financial advice to all Veterans who need it – and most importantly, we always aim to do it without ever making our clients go out of pocket. So, if you’re interested in learning about what and why financial considerations when leaving the ADF are important, look no further than National Service Financial and our financial advice for military personnel.

Who We Are

Established by a former member of the Royal Australian Navy, National Service Financial truly understands the unique needs of military personnel and veterans. Seeing firsthand the challenges ex-military members face during their transition, we became determined to create a dedicated space for delivering financial advice to military personnel, paired with genuine and understanding care.

That space is National Service Financial, a company that values trust, integrity, and giving back to the Defence community by providing financial services and helping safeguard the financial future of Veterans. What sets us apart from other financial advisors is that we are veteran-run and led and, as such, focus solely on offering financial advice for military personnel.

As leading and accredited financial advisors, we are bound by the ASIC Code of ethics and meet all obligations to ensure we are compliant within all ASIC regulations. This code ensures financial advisors set and maintain agreed professional standards, so you can trust that we always operate under ethical and fair business practices when giving financial advice and helping our clients become financially secure.

How We Can Help You

Veterans can face many financial challenges. We aim to create a solid financial foundation for our veterans through genuine, skilled expertise that facilitates optimal financial independence post-service. We offer financial advice for military personnel in a comprehensive and educational manner, delivering a more holistic approach to financial advice.

By utilising a trusted network of specialists, we can offer a wide range of support and education to our clients, thanks to our access to mortgage brokers, conveyancers, accountants and other financial planning services, along with various Ex-Service Organisations.

Above everything else, though, we at National Service Financial aim to specialise in providing genuine, personal care and advice. We understand how stressful and overwhelming a departure from the ADF can be. Whether you’re retiring or medically discharging, ensuring you can cover your everyday costs is essential. Our team wants nothing more than to enhance our clients’ financial education and prepare them to create a secure financial future for themselves and their families.

Why It Is Important to Understand Your Finances When Leaving the ADF

For Veterans leaving Defence and transitioning into civilian life, safeguarding their financial future should be one of their top priorities. This cannot be done without a thorough understanding of their financial situation.

In order to ensure that you can live your life after service comfortably, and without worry, you need to understand what your sources of income are, and what additional payments you are entitled to thanks to your service.

Having a solid grasp on these aspects of your finances is critical as it allows for responsible financial planning and is one of the best ways to ensure a comfortable life as Veteran. With the uncertainty of the future, there come are a variety of factors that can impact your financial stability, including changes in the economy, and unexpected health or personal issues.

By understanding where your money is coming from and how much you need to live comfortably, you can prepare for these potential challenges and minimise the impact they may have on your finances.

This ties into one of the most important reasons as to why understanding your finances is so important to Veterans – mental health. Financial stress can have a significant impact on your mental and emotional well-being and can cause anxiety and worry. By taking steps to protect your financial future, you can reduce your financial stress and anxiety and create a sense of security and stability.

Understanding the most important financial considerations for Veterans when leaving the ADF is the first step in this process and will eventually lead to helping you create the financial flexibility and freedom to pursue your passions and aspirations. So, if you think it’s time you took those first steps and began planning for your financial future, then it’s time to turn to National Service Financial and our financial advice for military personnel.

The Top Financial Considerations When Leaving the ADF

Now that you understand who we are and why we are so passionate about providing financial advice for military personnel, it’s time we got into what you need to consider regarding your finances when leaving the ADF.

Personal Insurance

ADF members have statutory death and invalidity cover through ADF Cover, MSBS or DFRDB, which provides benefits to you or your family if you become ill, injured or pass away.

You also have comprehensive compensation and rehabilitation cover, however all of these covers will cease when you leave the ADF. 

As such, some of the most important financial advice for military personnel, is that if you wish to maintain personal insurance cover after you leave the service, you will need to source personal insurance privately.

Superannuation

Another important piece of financial advice for military personnel is understanding how and when to access your superannuation. If you are leaving the ADF for retirement, discharging on medical grounds, being retrenched, or resigning, you’ll need to make some decisions about your super when you transition out of the service. 

Generally, you cannot access super unless you are retiring after reaching preservation age and have met a condition of release, which, for most people, will be reaching age 60 and leaving an employer. However, DFRDB members can access their pension on resignation or retirement, and MSBS members are eligible for a pension from age 55 after leaving full-time Service. If you are with MilitarySuper, it may be good to understand how MSBS works so you can achieve your long-term retirement goals with peace of mind. 

Housing

An often overlooked but just as important piece of financial advice for military personnel is to ensure that your housing is covered. Many ADF members receive subsidised housing so when you leave Defence your cost of housing is likely to increase, and as such, if you are currently in Defence housing, you will need to find alternate accommodation.

Luckily the DHOAS is a scheme that helps ADF members own their own home by giving you a subsidy, paid directly into your qualifying home loan. If you have a period of full-time service greater than 4 years, you may be eligible for assistance through the scheme. 

For more in-depth advice on how to navigate these factors when leaving the ADF, contact the experts at National Service Financial and let us provide you with some of the best financial advice for military personnel.

Our team wants nothing more than to enhance our clients’ financial education and prepare them to create a secure financial future for themselves and their families. If you’re in need of help, then National Service Financial has your back.