Let the Military Handle It?

Dear Dave, My husband has been active-duty Navy for 22 years. He plans to stay in for 30 years, and retire with a pension equal to 75 percent of his base pay. Considering that he'll receive that money, should we still go ahead and save 15 percent in a Roth IRA for retirement? Megan Dear Megan, That's a pretty nice pension, so I don't mind if you turn down the retirement saving a notch or two. I'd be okay with 10 percent instead of 15, but I still want you guys to save lots and lots of money! Even though a military or government pension seems pretty stable, you should never rely on things that are beyond your control. So, don't assume the Navy is going to take care of you. I'm not knocking the military, Megan. I just want you to have a separate nest egg over and above what they will provide. If something unforeseen happened and your husband couldn't make it to 30 years, you guys would need an additional source of income more than ever! - Dave
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