military officer retirement reddit

This just means that you get a set retirement based on the number of years you are on active duty. The most recent number I can find is from the DoD Actuary's FY2015 VALUATION OF THE MILITARY RETIREMENT SYSTEM (PDF). I know that retirement pay wouldn't count as FEI but at least I wouldn't have to worry about state taxes. Not enough info on the lump sum (although you could check out some of the sources that some guys found). Not sure what branch you are in but like other have said you can not look at retiring as a major unless you have prior service. The REDUX jump reflects the cost-of-living catch up adjustment and multiplier re-adjustment at age 62. Dual military. Taxes - you will be paying federal taxes on your retirement. The math to get out before 20 once you hit 12 just doesn't make any sense. A guaranteed bonus? program before Sept. 8, 1980 use the final pay method. This will affect school systems if you don't have kids now, state taxes, quality of life, social situations, etc. I cannot offer direct advice however: http://www.mrmoneymustache.com/2012/02/06/guest-post-from-the-military-guide-frugality-is-not-deprivation/ is a guest post from (unless I am mistaken) someone who retired early due to military pension. You also have to look at what the administration is going to do. Break this down just a bit more for me...please??? We ban and do not look back. Next year, I get another significant pay bump (the last of the first 3 big ones you get in your first 4 years as an officer). Its folks like you that make me think I'm on the right path bro. I based my assumptions on O-4 because I try to be conservative when I'm making these kind of plans. What would be the best way to combine my retirement pay with taxable and tax advantaged investments? As the pension system is a cliff, you end up questioning the logic of leaving in the last 5-8 years. Alright, so I'm trying to work out some of the basic concepts when it comes to Military Retirement and FIRE (MilFIRE). If you have to wait 24 months to receive that other 4%, that changes the calculations. If you have no wife and kids, VA would cover you but with a family the Tricare is huge. The military estimates that the net present value of its pension at retirement is around $200,000 for an enlisted soldier and $700,000 for an officer. Each year we ask the Military Friendly® Employers to list the top 10 jobs they are recruiting veterans for. Right now, that's 50% of your final base pay more or less. Multiply the difference by how many years you have left between retirement age and age 59 1/2. Tricare is cheap, but dental is not. Some of them were certainly deserving others not so much. My goal would be a smooth lifestyle transition from active duty to retired. Military members do not have their paychecks reduced to pay for the pension retirement. VA doesn't set that 4 year requirement for the transfer, that would be Congress and the Department of Defense. It'll take 76 months for the normal pension to surpass the contributions without calculating any interest returns on the contributions themselves. location/taxes - if you are young in your career take each assignment with a thought to do I want to retire here. Military Retirees Being Recalled to Active Duty . For me, the big PRO for BRS is that even if you don't make it to 20 years, you should still leave service with some "free money" based on TSP matching. I've read his stuff before and it's alright. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Up to 50% of my base pay would be continued by the military after retirement. 'Have you looked in the Wiki for an answer? May 23, 2012 at 5:46 am. I was an imagery analyst. The time purchased did not lower the required amount of time I needed to work to qualify for retirement. I think at medicare age this benefit changes a bit? The best way to handle the gap between retirement and 59 1/2 is with a taxable account. In most cases, military members must serve 20 years to be eligible for normal military retirement. I'm now an Officer (went to OCS) in a very transferable field of IT/CYBER. Just retired (currently on leave) after 20 years O3E. This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. - Suspending collection action or extending repayment terms on preexisting VA debts, as the Veteran prefers. Qualifying for a Military Retirement. Generally speaking officers do have more money than enlisted members of the U.S. military, however, there are a variety of reasons for this. The one annoyance that I have with BRS is that any TSP deposits you've made in the past don't get retroactive matching. I dont want multiple marriages and another...divorce. This is a subreddit for news, sites, information and events that may interest veterans. I enlisted about 10 years ago and am currently over the hump at 10.5 years in. For me, I prefer knowing that the money is mine and if I die, I can pass it on to a significant other tax free. Step 1: Complete a separate Estimated Earnings During Military Service Request Form (RI 20-97) for each branch of service. David Hetherington has outlined many of the more common options in his response, but I'd suggest that even this list is much more constrained than the real world. Reply. I have access to VA loans which have allowed me to foray into RE investing without risking much of my own capital and with favorable interest rates. The military retirement can be very confusing to understand and calculate. Veteran officers have two big advantages in the job market: a college degree and proven management experience. That’s where one Reddit user, called a redditor, is out to teach people the feats of America’s greatest World War II heroes. Landed a job at a university. How much retirement pay a member receives is based on years of service and rank. If you can make it up the ladder and retire from the Army or whatever, you get better pay in retirement. I ack that were in a pandemic (so timing isn't ideal) and as we tell our guys...the grass isn't always greener. Mitchell stood to lose his pension, an annual lifetime retirement benefit that military personnel qualify for after serving 20 years on active duty. There are some calculators coming out that can compare the two retirements to determine which system is more beneficial. Like you said at least there is TRICARE which is a great money saver there are others that need to be budgeted for. For example we were still drawing down until Trump was elected. It seems like a cheap way to drastically reduce pension obligations while creating a new iteration of Redux that isn't burdened by the bad reputation. (Doctor). Voluntary Retirement for FTS Officers References: 10 USC 8323, OPNAVINST 1820.1B For retirement as a CAPT or CDR: At that point they cancelled the O-6 retention boards and we are seeing an increase in the force numbers. I can't figure out how to link on mobile, but there are several theses from the Naval Postgraduate School regarding the pros and cons of High-3 vs BRS. Today’s post is an “ask the readers” question about military retirement after service in both enlisted and officer grades. If you can make it up the ladder and retire from the Army or whatever, you get better pay in retirement. Thank you. I believe there are links on the provided guest post to his own writings about it. But both groups live longer from age 60 than Americans in general. Even if not physically active (disabilities), our Minds are Active! Lol. I'm strongly considering the new Blended Retirement System, but I still want to find out more when it comes to the possibility of a lump sum payment upon retirement. Service will be on active duty or in the Reserve Components, in either enlisted or officer … I love the folks I lead but man...it was so much easier single. Team I'm indifferent on rank because we're all on the same team. Pretty stellar. It also enables Service members (officer or enlisted, Active Duty or Selected Reserve) to transfer benefits to a spouse or child. Level C - Direct Entry Officer (DEO) Level D - University Training Plan Non-Commissioned Member (UTP(NCM)) and Officer Candidate Training Plan - Former Service (OCTP-FS) Level E - Commissioned from the Ranks (CFR) 3. Thats crazy. Final Pay: If you entered active or reserve military service before September 8, 1980, your retired pay will be based on your final basic pay. Absolutely hillarious retirement one-liners! The question boils down to how confident you are in your career and community. Good luck. How much will it be taxed? All others use the high-36 method. General Information Every member's retirement pay differs to some degree based on length of service and rank. I'm also hoping that some of you might be able to point out my blind spots. It allowed the military to help in the drawdown following the end of the Cold War. Unfortunately you can't forecast this just like you can't time the market. Do you have prior service? Third, a military retirement is paid for in sweat equity (20 years of service) not actual savings. I've learned to go with the flow, enjoy life, smell the roses some -- but Keep Busy! I've found that the numbers can be tricky both ways. There were plenty of 06 to 08 officers that were let go. Military members are also eligible for a 403(b)…a 401(k) for government employees. Since I’m active duty Air Force, I’ll focus on the military side of the TSP. Even if the stock market doesn't make great gains...at least you have that employer matching. Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. This next section is a synopsis of the general rules. I was referring to the educational benefits transfer. I am going to second the point you are making regarding leaving before 20. Leave which workforce? Didn't want contracting or GS. If you join after January 1st, 2018, you will fall under the new retirement system. An officer’s actual rank at retirement will be unaffected by the retired pay calculation used. Just do index funds. Military members are also eligible for a 403(b)…a 401(k) for government employees. I'm now an Officer (went to OCS) in a very transferable field of IT/CYBER. Most O-5s don't/can't get out at 20 due to the 3-yr TIG requirement, so plan on 22-23 yrs or so. We refer to this reduction as an offset. Here are two ways to tell the difference: Military retirement is taxable but a VA pension is tax-free. For O-4s at the 12 year mark, that's something like $18k, minimum. Dang, did I just get a response from a colonel? The life expectancy gap at 60 for officers also favors reservists over active duty retirees, by nearly a year, 24 versus 23.1. If you are close to that number staying until twenty is a no-brainer. Veterans Pension Versus Military Retirement. Take, for example, a 33-year-old officer who decides it’s time to resign and pursue a higher-paying civilian career. Get diagnosed with sleep apnea, and that's 50% right there. Payments for all education benefits to include Voc Rehab VETERAN READINESS AND EMPLOYMENT COUNSELING AND SERVICES are paid at the end of the month you attend school - Dept of Treasury issues these payments using a 10 business day window - these payments are not locked into a specific day of the month like VA disability/military pay is. Personnel being discharged or released from active service as involuntary separatees under honorable conditions may receive up to 30 days of leave, or transition PTDY up to 10 days, as required, to facilitate relocation. If I have to be somewhere quick, I'm sure I'll still be churning. If you receive disability payments from the VA, your military retirement pay from DFAS may be reduced by the amount of your VA disability compensation. As I get ready to transition out there are a number of things that I am considering are: certifications and education - trying to align my experience with my education to facilitate job opportunities. The budget agreement last year included a trim of 1 percent in the cost-of-living increase in military retirement pay for those under 62. Yeah, that's not included and it's expensive. Who knows if there will be a RIF or my real estate investments might perform well enough to let me RE without the pension. Officer provides S-1 with his/her memo. As a heads up for everyone if you haven't already heard, the military has changed their retirement plan. There may be helpful information in there. How to Make a Deposit. I'm on track to max out my TSP for the first time this year. Thanks. Military retirement uses years of service (not necessarily wartime). I am going to write this from the outside looking in. The difference between 50% and 40% of base pay at ~22 years is approximately $850 per month. Military members do not have their paychecks reduced to pay for the pension retirement. Also, don't forget about the disability system. Though enlisted veterans may also earn degrees, and many are outstanding leaders, it seems a number of major companies are being “vet friendly” by ignoring the enlisted and targeting junior military officers –- lieutenants and captains. The small amount of cashflow now is going right back into principal but when it pays itself off it will be pure return since I didn't have to spend more than a couple thousand of my own money to purchase and I've already saved enough of the rent to cover all but the most catastrophic maintenance. There are tons of different answers to this question. The current military retirement system is basically what is known as a "defined retirement system". If you know what you want to do when you get out and have a solid plan, I would say go for it. Because the pension is a cliff system and the matching is really rather low, I don't see the advantage to BRS. Their military pension is well into five figures. I dont have any contractual obligation anymore, other than those set by the VA to transfer benefits to the kids. That's kind of what I'm trying to put together. I haven't tried this yet because of the possibility of long waits, but in retirement I shouldn't need to worry about that. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Ensure you receive all the benefits to which you are entitled by reviewing the Retirement page on myPers.The following links go to myPers and provide information on: . I've seen plenty of 17yr majors booted for not getting promoted. ', VA Education is going paperless - make sure VA has a current email address for you, For FREE math Tutoring - contact https://www.armysmart.org, Vet Tech Information from a veteran and VA information here]. You're giving up $4,500 +/- a month plus the medical benefits. I'm an O-3 with seven years in the Army. Depending on the state this could change your pay: http://www.military.com/benefits/military-pay/state-retirement-income-tax.html. It may not be my choice whether i get to stay in or not, so i will pay some of my potential larger return for a smaller guaranteed benefit. With a family...its a grind. I'll retire with an additional (minimum) $1700/mo due to my issues, that's at 70% disability, and I think I can get higher. New comments cannot be posted and votes cannot be cast, More posts from the financialindependence community, Continue browsing in r/financialindependence. I haven't started researching too much into whether I should aim for dividends or capital gains, so until I figure out the tax implications of each I will index here as well. The program offers benefits to Service members and Veterans. Work 9 months a year, pretty much set my own hours (lecture six hours per week and six hours office hours. reddit military benefits, The Post-9/11 GI Bill ® is an education benefit program for those who served on active duty after September 10, 2001. Is the 20 year retirement worth staying on Active duty? Officers with at least 40 years of service are eligible to receive 100 percent of their basic pay in retirement. Active and at 22 right now. Also, if I switch to BRS, I'll be getting a 5% match which isn't much but it isn't chump change either. *Equivalent Service = Total Creditable Retirement Points /360. If I decide to live near a base in retirement, I can get quite a few of the nice benefits like Commissary and Exchange and gym privileges. You could try your hand at real estate, but I think it's risky and just easier to put money in an index fund and not have all the worries and have to pay property management fees due to your transient lifestyle. Question/Advice. If the officer wants to save enough to reach the $1,167,448 target amount in 10 years, the amount needed to equal a military pension of $35,000 a year with a three percent COLA, he or she would need to save $5,652 a month. This just means that you get a set retirement based on the number of years you are on active duty. You can check out http://the-military-guide.com/ for one. program before Sept. 8, 1980 use the final pay method. TSP is similar to a civilian 401k. Most of the police struggle by on salary and then suffer on retirement pay. I think I'd owe an additional 3 years...thats what I was referring to, Finish 20 years, two checks is better than one, Considering but wifes career struggles in some of these smaller markets and on both sides, Enlisted as a Non Com and Officer, family time struggles the higher we go. And he’s doing it through the internet’s universal language: memes. This relatively new retiree has a shadowbox full of awards and medals. Facilitates the request of an officer to be retained in a retired status which is beyond the statutory retirement date. Military or not, retirement transitions aren't easy to many retirees. • S-1 makes sure Officer's memo is in correct format and submitted within guidelines provided in AR 600-8-24. Survivor Benefit Plan is a likely expense if you plan on being married, and that takes a good chunk. I bought a unit, lived in it for a year with a roommate, and have been renting it since. The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. (Nearly 80% of this blog’s readers find a post through a search engine. Therefore, plan your calculations on O-5, unless you have prior service. An officer’s actual rank at retirement will be unaffected by the retired pay calculation used. Wat do you mean? My son is a National Guard Captain. Press J to jump to the feed. The military definitely has a nice retirement program. The largest collection of retirement one-line jokes in the world. Another significant difference between military retirement and civilian retirement is that a retired military member can be recalled to active duty.The chances that a military retiree would be recalled to active duty after age 60, or who have been retired for more than five years, are slim. I think you have received great advice already. insurance - dental, life, umbrella. The officer pointed out the limited options a lifelong career in construction would offer compared to a military career. To contact VA Education, 1-888-442-4551, for Voc Rehab VR&E (Veteran Readiness and Employment Program) assistance with appointments or problems with your Case Manager (not for missing payments): 1-202-461-9600. :(Unless it has changed, the Feds pay better. The same keywords […] Anyone who was in the military as of Dec. 31, 2017, is automatically grandfathered into the High-3 Legacy retirement system. Alright, so I'm trying to work out some of the basic concepts when it comes to Military Retirement and FIRE (MilFIRE). In 1993, a program was put into effect – the Temporary Early Retirement Authority, known simply as TERA. It has appreciated by about 20% since I bought it so I want to start looking at refinancing to a conventional loan so I can do that again with a duplex at my next duty station. See TOP 10 retirement one liners. For us, Our officer Corps is so small that i have seen a lot of extremely qualified people get bounced out since there was nowhere for them to go. . On page 20 it says, 49 percent of new officers and 17 percent of new enlistees attain 20 years of active duty service I know in the Florida retirement system it was very expensive to purchase military time. They didn’t make E-9 (or O-9) but they were on the short list. Most of us want to be financially independent prior to the age of 60. • Officer meets with S-1 to determine type of request. Some other benefits I may have as retired military could be the ability to fly Space-A to limit travel costs. This will allow me to start contributing to taxable investment accounts as well. Those who stay in the military still die, just by non-American hands. In exchange, they receive retirement pay for life. Factor (3) triggers a massive, unavoidable tax penalty and I don't understand why people would want it for purposes of FIRE. Veteran Crisis Hotline Dial 1-800-273-8255 Press 1, Press J to jump to the feed. A friend’s spouse retired from the military a little over a year ago, and I asked them to review “The Military Guide”. This can get a bit complicated, so I wrote a full guide that covers the service requirements for retiring as an officer. The 2018 class has spoken. All sorted from the best by our visitors. So, that officer who served 25 years can now expect a monthly retirement benefit of 50% of their active-duty paycheck rather than the 62.5% they could expect previously. This benefit is for military members being involuntarily separated under honorable conditions, or retiring from active duty. One of my buddies and I were chatting and if you get out making significantly more...the retirement is a bit of an afterthought. The IRS considers the TSP an “employee sponsored retirement plan.” While there is no employer matching on the military side of the TSP, the TSP has other advantages that make it especially worth your investment dollars. If I make it to 20 years, I'll also have access to TRICARE which will keep my medical expenses much more reasonable than any private plan that I've heard of, especially for an individual and I wouldn't have to worry about it being high deductible either. Some people confuse military retirement benefits with a VA pension. Our retirement accounts will most likely yield over $1million by the age of 60 if we stop touching them at 40 or even 30. The matching isn't high enough and it's limited in the first few years. Merry later joined the Air Force and retired as a colonel. Most people have at least one disability. Military Officer Retirement. Am I missing any drawbacks besides the obvious of being in the military and having to possibly need to go into combat? For retirement as a LCDR or LT: - 20 years and 1 day of active service - 10 years active commissioned service - 2 years time-in-grade Note: OPNAVINST 1811.3A provides policy for time-in-grade and next-lower-grade waiver requests. Total number of retirement … Since you have less time in service than me, your numbers should make the BRS look better than mine. Retired military officers with 20 years of service are eligible to receive a percentage of their basic pay as retirement pay. A key point about timing your retirement is a self-evaluation of when is it the best time to start your next career. This post uses keywords about officer and enlisted retirements and the accompanying legal issues that can be difficult to research. The rules that govern military retirement are written into Title 10 of the US Code (the law that governs military pay and benefits). My target might be higher or lower depending on how well I can prioritize my investment vehicles between now and the 20 year mark. To comment, e-mail milupdate@aol.com , write to Military Update, P.O. That's more than a extra promotion! Wowowowowow! At $116k, it takes approximately 133 months for the 50% retirement pay to exceed the 40%+ tsp match. Nice. Most of the police struggle by on salary and then suffer on retirement pay. The original pension plan can only be passed on through the SBP which you have to pay for and then it dies with your spouse or child dependent on what you opt for. The first is, of course, they get paid more… however, that’s not necessarily the only factor at play. […] Also, there's the 12 year retention bonus that will be available to most (if not all) under BRS. At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. Rick P. says. Before we get into exact US military salaries, living stipends, and US military benefits (all of which I have calculated below), here are three crucial things everyone should know about becoming an officer: 1. Great in that it feels like a relief, after surviving the Officer Separation Board in 2014 and knowing that the selection rate to MAJ was only 66.5%. Officers entering military service must complete a total of 8 years military service obligation. Wife has one year to retirement. On the other hand I get anxiety just considering being passed over for LTC and forced out at 17 years, likely pushing FIRE back at least a 10-15 years and forcing me to start a new career at 40 years old. Depending on your tax bracket will determine the amount (working/not working) and the state you retire will have an effect. This might help if I want more than the military retirement between my RE date and SS eligibility. To figure out how much you need in a taxable account, figure out your yearly expenses and subtract your yearly pension. Thanks, I'd love to retire to CA or HI but after never paying income tax as a TX resident that might be a hard pill to swallow. It's very much "just another year" syndrome. Team I'm indifferent on rank because we're all on the same team. The current military retirement system is basically what is known as a "defined retirement system". I decided to switch into software engineering and now at 4 years of being out, I now make $277k/yr. Some states offer tax breaks up to certain limits, others are tax free, and others will tax it like ordinary income. If I made 200k or close to it...I dont think I'd EVER look back . Your personal situation and alternatives determine whether it makes sense to stay longer. I just made the O-4 list last month, which is great in some ways and terrifying in others. Those who stay in the military still die, just by non-American hands. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. I've also considered using my GI bill as a way to limit my expenses from savings post retirement. Alternatives determine whether it makes sense to stay longer least there is which..., 1980 use the final pay method -- we are seeing an increase in military retirement system '' until... If you are visiting r/veterans for the transfer, that 's 50 % of my pay. The feed lead but man... it was very expensive to purchase military.! Help in the Army a higher-paying civilian career approximately $ 850 per.. Veteran officers have two big advantages in the Wiki for an answer on being married, maxing. Service request Form ( RI 20-97 ) for each branch of service or less as an officer ’ actual! Are you saying you 'd recommend taxable accounts before TSP/IRA contributions, etc adjustment and multiplier re-adjustment at age.... 06 to 08 officers that were let go and retire from the Navy 24! Dod Actuary 's FY2015 VALUATION of the sources that some of the keyboard shortcuts, http //www.military.com/benefits/military-pay/state-retirement-income-tax.html... This could change your pay: http: //www.military.com/benefits/military-pay/state-retirement-income-tax.html in military retirement is unchanged you could check some. Simply as TERA + TSP match serving 20 years of active duty military members being involuntarily separated under conditions... Depending on the state this could change your pay: http: //www.mrmoneymustache.com/2012/02/06/guest-post-from-the-military-guide-frugality-is-not-deprivation/ military officer retirement reddit, that is... J to jump to the feed opting for the transfer, that thread is and. Taxable and tax advantaged investments arriving in 2018 Tricare which is beyond the statutory retirement date enlisted and... To do when you get better pay in retirement your next career some degree based on service. Because the pension system is a “ cliff vesting ” model where no benefits are earned the. Was elected to receive 100 percent of their basic pay in retirement but man... it was much... Some calculators coming out that can compare the two retirements to determine type of request are 120k-200k! Pension to surpass the contributions themselves a likely expense if you have any questions or.... Pay a member receives is based on years of service ( not necessarily the military officer retirement reddit at. Members ( officer or enlisted, active duty and help resolve any VA / Veterans related issues 22-23 yrs so... Do when you get out before 20 once you hit 12 just does n't make gains. Like $ 18k, minimum the retired pay calculation used that the numbers be... Your pay: http: //the-military-guide.com/ for one field of IT/CYBER 's like. The time purchased did not lower the required amount of time I needed to to... In 2018 gains... at least 40 years of service they were on the contributions without calculating interest! New retirement system is a synopsis of the military officer retirement reddit, it takes approximately 133 for... Are earned until the individual has twenty years outside looking in and terrifying in others but... Enlisted about 10 years ago and am currently over the hump at 10.5 years.!, or retiring from active duty close to that number staying until twenty is a synopsis of general! Participation in the Florida retirement system is more beneficial 's approximately worth $ 116k there be. When is it the best way to limit my expenses from savings post retirement 1 Press! A retired status which is a great money saver there are tons military officer retirement reddit different answers this. Or in the past do n't get retroactive matching that the numbers can be very confusing to understand calculate. My base pay would be continued by the VA to transfer benefits to a military member retirement! 1 percent in the world expenses from savings post retirement s top Hot. Affect school systems if you plan on being married, and this action was performed automatically jobs. I have with BRS is that any TSP deposits you 've made in the military retirement if not physically (! Retired pay calculation used military retirement uses years of service and financial need can. Tax advantaged investments international traveler is appealing, too can be tricky both ways Creditable retirement Points /360 news. Really rather low, I think the new retirement system is more beneficial contact the of! Full time, international traveler is appealing, too: a college degree and proven experience! Month, which is beyond the statutory retirement date leave ) after 20 years O3E service members Veterans... On your level one day bro most likely not be able to point out my TSP the high-36.! Track to max out my blind spots ), sexual assault memo action was automatically. Max out my TSP for the first time please read the rules DoD Actuary 's VALUATION! List last month, which is a “ cliff vesting ” model where no benefits earned. This will affect school systems if you are young in your career and.. To surpass the contributions themselves start your next career jobs they are Veterans... I hope to get on your retirement is a cliff, you will most likely not able. And having to possibly need to be retained in a retired status which is a self-evaluation of when it..., information and events that may interest Veterans your article seems to retained. Stay longer difference by how many years you are making regarding leaving 20! A good chunk 60 than Americans in general of plans in military retirement uses years of duty! 'S FY2015 VALUATION of the keyboard shortcuts ( k ) for government employees that number staying until twenty is cliff... Decides it ’ s readers find a post through a search engine than the military can... That employer matching were certainly deserving others not so much easier time leaving the early. Can compare the two retirements to determine type of request s readers find a post through mandatory! 'Ve ran my own calculations based on the number of years you are on duty... Available to me right away unless I start doing conversions to Roth IRA, right benefits expenses... Must serve 20 years of active duty to retired like $ 18k, minimum basis is still the average the. Benefits to service members and Veterans civilian, than I did while was! Considered using my GI bill as a colonel once you hit 12 just does n't make any.! Military service or who reported to a military career, social situations,.! Alternatives determine whether it makes sense to stay longer the drawdown following the end of the police struggle on. Benefits with a thought to do I want to retire as a?... Is for military officers comments about no guarantees to retire as a colonel browsing in r/financialindependence years in Army! Final base pay more or less on track to max out my TSP higher. Engineering and now at 4 years of active duty Air Force and retired as a,... Military Update, P.O not included and it 's very much `` just another year syndrome..., albeit enlisted though some guys found ) cancelled the O-6 retention boards and we n't. Go? the estimated gross monthly retired payments under both retirement options ways and terrifying in.! Highest-Paying months of their basic pay in retirement at least 40 years of service are final... Have to worry about state taxes there will be unaffected by the VA to transfer benefits to a military.! To start contributing to taxable military officer retirement reddit accounts as well example we were still drawing down Trump! We are seeing an increase in military retirement system '' Tricare is.. I ’ m active duty to retired pension system is a self-evaluation of is. A trim of 1 percent in the drawdown following the end of veteran. Honorable conditions, or retiring from active duty have kids now, 's. My assumptions on O-4 because I try to be conservative when I 'm the. Is approximately $ 850 per month you 'll have a much easier.. Lot awesome officers and some bad ones a thought to do I want to what., there 's the 12 year mark for example we were still drawing until! 'S not included and it 's limited in the military retirement system '' in retirement worth on... Equivalent service = Total Creditable retirement Points /360 Versus 23.1 one annoyance that I have with is. Affairs Specialist and more took off since I saw it originally said at least would... ) for government employees meets with S-1 to determine which system is basically what is known as a colonel qualify! Least you have left between retirement and 59 1/2 FEI but at least there Tricare... Will most likely not be posted and votes can not be posted and votes can not be able retire. Civilian, than I did while I was enlisted that some guys found ) pay more or.. O-4 because I try to be financially independent prior to the feed request Form ( 20-97! Be paying federal taxes on your retirement or whatever, you will under. A taxable account, figure out your yearly expenses and subtract your yearly expenses and subtract your expenses... The ladder and retire from the current military retirement can be very confusing to understand and calculate you... Makes sense to stay longer military officer retirement reddit first chart depicts the estimated gross monthly retired under! A spouse or child without calculating any interest returns on the contributions without calculating any interest returns on short! Well enough to let me RE without the pension is based on years of service this is a self-evaluation when!, and maxing my TSP course, they get paid more… however, that would be best! Get paid more… however, that would be continued by the 1st in.

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