ADF members enjoy a range of perks that save money, such as discounts on travel, medical expenses, housing, meals, and clothing. When you add it all up, these benefits are worth a lot.
As you transition to civilian life, keep in mind that the savings from these entitlements can make a $100k salary in the ADF more valuable than a $100k civilian job. While it might seem like you'll be fine with the same salary, you could end up needing more to maintain your lifestyle. Planning ahead is crucial to manage expenses that were either subsidised or free in the ADF.
Here are five tips to help make your financial transition smoother.
Stick with Defence Bank.
When you transition out of the ADF, a lot will change including your access to base, but you can keep some things the same, like being a member of Defence Bank. It’s worth noting that Defence Bank is open to all Australians, not just ADF members, and staying with Defence Bank has its perks:
- The Defence Bank Foundation Credit Card which offers one of the lowest interest rates across Australia and supports veterans.
- A DHOAS home loan. Defence Bank is an approved DHOAS provider. If you still have a DHOAS entitlement*, schedule a virtual appointment with a mobile lender and apply for a loan from anywhere at a time that suits you.
- ATM access. Members can make fee-free withdrawals and balance checks at thousands (yes thousands!) of ATMs Australia-wide including all machines within the atmx by Armaguard network.
- Mozo award-winning banking app. Avoid the hassle of switching banks and adapting to a new app by sticking with our Mozo award-winning banking app for all your everyday needs
Plan ahead.
Hoping everything will just work out isn't a plan. Moving to civilian life can be exciting, but it's crucial to plan and budget for any new and unexpected costs.
Start by listing all the entitlements you get in the ADF, like affordable housing, free gym access, and subsidised food and utilities. Calculate how much these benefits save you and include those costs in your civilian budget. This will give you a clearer picture of your future living expenses.
For instance, you might not have work uniforms covered by your employer in a civilian job, so make sure to factor that into your budget to avoid any surprises.
Make a budget.
This one’s important. Use Defence Bank’s Budget Planner to create or update your personal or household budget.
It’ll help you spot where you might need to cut back to stay on track with your financial goals and adjust your spending as you transition out of the military.
Get discounted health care.
Health care costs are something to consider when planning your civilian budget.
In the ADF, you receive free health care that covers not only yourself, but also covers recognised dependents through the ADF Family Health Program.
However, as a civilian, you’ll have to pay for health care, and in the private sector, this can be expensive at around $160 per month for a single and over $300+ per month for a family.
Fortunately, Defence Bank can help you save here.
You can get a 5% discount on health insurance through Navy Health if you're an ex-serving member or family. And if you become an Active Reservist, you might get a 10% discount on your Navy Health premiums.
A personal loan can provide fast funding.
When you start civilian life, you might need some extra money to get settled.
A Defence Bank personal loan could be a good option. It offers a low interest rate and can help you buy a car or furnish your new home. Plus, you'll get quick approval, flexible repayment options, and no fees for extra payments or paying off the loan early.
It’s a great alternative to Buy Now Pay Later services which can be confusing and may cost you more money in the long run.
We’re here to support you.
We understand our ADF members live a life like no other. Visit our blog for tips on managing your money for the next stage in your life. For more help, talk to our team by calling our Contact Centre on 1800 033 139 or visit your local branch.
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.
* For information about your DHOAS eligibility or entitlement contact the Department of Veterans’ Affairs.
