I didn’t serve, but for my friends and family who retired young, in their late 40’s early 50’s the biggest challenge was finding a job. The people who retired late 50’s early 60’s had a much easier time. Some of the “older” retirees continued to work part time or did a little side business. Since they all had retirement benefits they didn’t have very big financial worries.
People I know who left before retirement it is hit or miss whether they had a tough time or not. I think it had to do with the job market and the economy at the time. All of my friends were healthy and able when they left service, except for one, so that made it easier. The one that was disabled, he was 100% disabled and married and they lived on very little for a while, and eventually they opened businesses in his wife’s name and made decent money.
One of my friends went to work for the VA after serving. She worked there 5 years so she gets some sort of retirement benefit or pension from there too. Now she works for FEMA on assignments.