How do you respond when someone says "Thank you for your service"?

I Guess I One One Of The Lucky Ones.
I Enlisted On My 17th Birthday; Upon Completion Of Basic I Was Sent To Little Rock AFB In Arkansas
Where I Discovered I Could Get A FREE Education, Which I Was Sadly Lacking, From The United Stated Armed Forces Institute (USAFI) ~ After Working In My AFSC For About A Year I Was Given Various Assignments And Enjoyed The Vast Majority Of My 4 Year Enlistment.. Then Stationed At Osan AFB, S. Korea, And Became A Good Friend With Quan, A South Korean Soldier Whom Took Me All Over South Korea, And I Made A Few Short Trips To Japan.. If The Tax Payers Ever Discovered How Much Fun I Had On Their Tax Dollar, They'd Probably Demand A Refund.. So How Do I Feel When Told "Thanks For Your Service"? Normally I Just Tilt My Head A Little To Indicate A "You're Welcome" While Being To Embarrassed To Make A Verbal Reply. ~ As I Stated: "I Guess I One One Of The Lucky Ones." And I DO Realize It. ~ And I Still Love The USAF For All It Did For Me; It Changed My Life For The Better And It's Been A GREAT RIDE

Thank them and how you appreciate their greeting.

Depends on the person. I either say ‘Thanks for your support’ or ‘Best job I ever had.’ (Which is true)

Thank you. It was my honor to serve!

Vietnam era vet. That was never said to me until around 2016. I had to go to ER for an issue and the nurse, who was also a vet, said that to me. I responded thank you and said she was the 1st to ever say that. Now days checking out a Lowe's or Home Depot when I use the military discount the attendant always thanks me. A simple thank you is the best response.

I don't punch them out and just smile and walk away

I just nod politely and move on.

A lot of time it is just Lip Service, but you can tell when it is genuine,,, throw them a curveball “ Be Worthy Of My Support “.

I normally respond with "Thank you" or "I appreciate you," But recently I find myself saying "It was an Honor to serve!"

the LTC gave a great answer. I too served during the cold war in the early mid eighties and that problem exists for me. Now I can answer simply it was an honor and thank the person. Great answer LTC Broom