Purpose: The purpose of this paper is to highlight systemic factors of competence-based integration of retired military officers into the civilian labour market in terms of the perspective of the institutions and institutional settings of competence involved in the formation and deployment. Design/methodology/approach: This study is based on semi-structured face-to-face interviews with 25 retired military officers in Lithuania. Findings: The main institutional problems and challenges of the competence-based labour market integration of retired military officers involve are concentrated in the fields of deployment of skills in the military service, and as well as in the adjustment of acquired skills to the requirements of the civilian labour market. Research limitations/implications: The main limitation of the research is the absence of perspectives and attitudes of other stakeholders such as policy makers, employers and providers of education and training. Practical implications: Research identified expectations of retired military officers concerning improvement of training and labour market integration services. Originality/value: The paper is focused on the institutional aspects of competence-based labour market integration of the retired military officers from their perspective.