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In this video I give the example using the Blended Retirement Calculator on the defense.gov website:
BRS Comparison Calculator:
In my example, I ran the numbers for a person born in July of 2001 who entered service at 18 in July of 2019, served 20 years, and lied to be 85.
Total pension benefit = $3,813,000
Assuming over the course of an individual’s career they work 40,000 hours. I would then calculate that this person is earning $95 an hour in future pension benefit payouts.
If this enlisted person were to do just a six year enlistment and walk away before completing the 20 years, they would be giving up $1,144,000 in future pension benefits.
Running my personal numbers we have to be in the High-3 Legacy retirement system since I did not opt-in to the new system.
High-3 Calculator:
I was born in May of 1984 and joined in April of 2016 at the age of 32. I plan to do 30 years and live to be 85.
Total pension benefit = $4,596,000
Assuming I work 40,000 hours over a 20 year period, I am making $115 an hour in future pension benefits. If I were to leave after 5 years, I would be giving up $1,149,000.
If you are in the Reserves or National Guard, you cannot start collecting your pension until you are 60 after meeting the point qualifications.
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The topic of military pensions is a crucial aspect of military personnel’s retirement planning. Military personnel have a significant advantage compared to their civilian counterparts as they can receive a pension after serving for a certain amount of time. The amount of pension that one can receive depends on several factors such as years of service, rank at retirement, and type of retirement plan selected. In this article, we will discuss how much the military pension is worth in terms of millions.
To understand how military pensions work, it’s essential to know that there are four different retirement plans that one can opt for, with the most popular being the High 36 retirement plan. This plan calculates the pension based on the average of the highest three years of the enlisted member’s or officer’s pay across their years of service. The pension can range from 20% to 50% of the average of the highest three years of pay if retired after 20 years of service or up to 75% if retired after 30 years of service. Moreover, the years of service can also affect the percentage increase in pension.
According to the latest data available, the average enlisted member’s monthly military pension is around $1400. On the other hand, the average officer’s monthly military pension is around $3900. Further, if a retired member qualifies for the maximum pension rate, such as those who served for 30 years and retired as a general officer, they could potentially earn up to $20,000 per month.
It’s worth mentioning that military pensions are entirely different from civilian pensions as military personnel tend to retire at a much earlier age than their civilian counterparts. The early retirement provides retired military personnel with more time to pursue their interests or find other employment opportunities. Further, military pensions often provide access to healthcare benefits, which can save a retiree thousands of dollars in health expenses.
In conclusion, the military pension is a valuable benefit for those who qualify for it, and it can vary greatly depending on the duration of service and rank at the time of retirement. Although the average monthly earning might not seem very high, the pension’s true value is in the long-term security it provides to those who have served their country. Hence, it’s crucial to plan for retirement early on in one’s military career to maximize the benefits of this valuable program.
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Residual income!
Have 24 years of service, have 20yr letter, 16 years with another agency, not sure if I'll make it the last few years who do I talk to officially about getting good #s on what I can do and how much it will cost me so I don't lose those 16 years
I retired after 21 yrs MSgt/E7 and 18 yrs as a civilian police officer. I retired from USAF with degrees in Human Resources and Criminal Justice. One year after LEO retirement I got stir crazy and went back to work at the Veterans Affairs HR. I have less than a year for Federal Retirement System deferred retirement.
Yes, I got a VA rating disability BUT I would rather have my health (Gulf War Syndrome, COPD, etc) back. I was asked by a VA (civilian) tech would I do it over again. YES, 1000 times over.
Team Spirit, Reforger, Giant Warrior, Peacekeeper Challenge, Giant Sword, Volant Scorpion, Bright Star, Brim Frost, Desert shield, storm, Just (be)Cause, etc…
The difference in pay from O to E is absolutely ridiculous when E's teach O's how things work….
What if you transfer to another federal job? Does the pension not apply?
There is a caveat to the age 60 for Guard and Reserves. Certain qualifying order for contingency operations will reduce your retirement month for month for every month on those orders to a maximum reduction to age 55. For example, if someone was activated and deployed for Iraqi Freedom after 911 for a full year, their retirement age for collecting would be reset to age 59. The member has to apply through ARPC for the reduced retirement date by providing documentation of the qualifying event. I know many reservists collecting up to five years below age 60.
Great video!! I retired from the USAF after 23 years. Receiving SMSgt pension, VA compensation and working for Space Force has doubled my income. I suggest doing 20 years and get Masters degree, so many opportunities out there. God bless you all!
Better off becoming a cop in a nice asian area in san francisco, low crime and you get 2.7% every year you served as a pension at 57, plus you get overtime etc
I’m actually leaning toward reenlisting as well. Was a 12b but may go in as a CI now.
Was making 100k a year but so many issues with the economy from the 08 crash and to the pandemic. You’ve put in some great insight
U.S Navy is A Grand father Pete Ibasan. 35years long Beach Naval shipyard.,
The only reason is so high is because of the other 80% of the military members that didn’t go to the retirement don’t receive their full $95 an hours technically. the 20% of those who retire get that extra money in their retirements.
From watching your video, the key to the value of the pension is your life expectancy. If you can add a couple years to your life while earning your pension, you could potentially increase the value of it hundreds of thousands of dollars.
Sir I have the honor to request your U.S. MILITARY DEPARTMENT to help my friend Marc Alexander a retired Colonel U. S .Marine to claim and redeem his arrears , military monthly pensions and other benefits like yearly increases, insurance, yearly incentive Bonuses and other benefits that is controlled by fake pensioners and fake beneficiary who are businessman and businessman not military in Fitzgerald, U.S. A. to be transferred all his past years military pensions and other benefits that he did not receive before his birthday May 31, 2022. The businessman and businesswoman who are fake pensioners with their minor son is a fake beneficiary are the ones controlling all the U. S. government military monthly pensions checks not given to the real true legal owner pensioner Marc Alexander even my friend's Military I.D., his Bank Account No. or his Passbook and other supporting Documents and these fake pensioners and fake beneficiary who are businessman and businesswoman and fake beneciary not military are forgering signatures of my friend Marc Alexander just to withdraw the U.S. Government Military monthly pension checks and Social Security Administration checks that encash to Cash. This is the greatest problem of my friend how to claim and redeem all his military money losses and other benefits and his SOCIAL SECURITY ADMINISTRATION money losses and other benefits owned by AL Johnson the fake military pensioner who is a businessman and his fake minor son fake beneficiary Oliver Johnson who are previously and presently handling and controlling all the government military monthly pension checks and other benefits and also of the Social Security Administration monthly pension checks and other benefits that are forwarded to Fitzgerald, Georgia, U.S.A. This fake military pensioner who is a businessman is now a multi-millionaire because he is taking advantage and controlling U .S. government military pension checks and other benefits, SOCIAL SECURITY ADMINISTRATION monthly pension checks and making falsification of public documents. Sir in-order to the prove the personal identity of Marc Alexander and Al Johnson who is of them is telling the truth of what is happening to the U.S. military government monthly pension checks and other benefits and SOCIAL SECURITY ADMINISTRATION monthly pension checks to appear personally in your U. S. MILTARY DEPARTMENT and SOCIAL SECURITY DEPARTMENT or I Court by interviewing them and investigating them to solve this anomaly or without the knowledge of U.S. Government. My friend is not enjoying his military monthly pensions and other benefits and also hi SOCIAL SECURITY ADMINISTRATION monthly pensions and other benefits because of the greediness and wickedness of Al Johnson a fake military pensioner a businessman not military is taking advantage and control all the military monthly pensions and SOCIAL SECURITY ADMINISTRATION monthly pensions and other benefits. Sir you will clarified with my explanation because this fake military pensioner make my friend miserable not enjoying his military pension checks and other benefits and SOCIAL SECURITY ADMINISTRATION monthly pension checks Sir I hope you can help fight for the right of my friend that he is the real true legal owner pensioner of his U.S.government MILITARY monthly pension checks and other benefits and SOCIAL SECURITY ADMINISTRATION monthly pension checks and other benefits. My friend does not know if his letter mailed to be forwarded to the SOCIAL SECURITY ADMINISTRATION OFFICE if it reached or not because of the fake military pensioner is in control again of the mailed letter so that the truth will not come out and their greediness, wickedness and stealing money of U.S. Government FUNDS and SOCIAL SECURITY FUNDS still continue receiving U.S. Government cannot be stopped. Sir I hope you will not allow this graft and corruption stealing U.S. GOVERNMENT FUNDS and SOCIAL SECURITY GOVERNMENT FUNDS THAT ARE FORWARDED TO FITZGERALD, GEORGIA, U.S. A. SIR I hope you can stop this anomaly of graft and corruption that is happening in FITZGERALD, GEORGIA, U. S. A. Sir correct the greediness and wickedness of the fake military pensioner. Sir save, help and protect my friend Marc Alexander in fighting for his right to own his military monthly pension checks and other benefits and also to own his SOCIAL SECURITY ADMINISTRATION monthly pension checks and other benefits. God bless you greatly SIR and your STAFF there.
So sir…Are you saying that even if I leave the military at a 6 to 12yr tenureship I will still be receiving the benefits?
Sir,
I have been in the Air Force for almost 9 Yrs. 9 yrs of neglecting all retirement plans.
It hasnt been until now that I been thinking about this topic (specially since I realized that half of my 20 yrs of service is past).
Keep up this good videos it gave me an image a lot clearer of what to expect after the service and what I need to do right now.
Thanks again for this videos and your service.
I'm an O4 and will hit 20 in a few months. Is it worth it to go past 20?
Thanks for great video and absolutely correct. I help a retired friend (retired as O-6 in 2006) with his taxes. Between retired pay, VA disability, TSP and SSA he grosses $150 k per year (net of $136k). It is definitely worth staying in for the long haul!!
Question if I want to serve for 24 years in the navy as a Diver will I retire with millions of dollars
Thank you Sir. I needed this focus on the long term
What if I do 4 years of active duty, then 16 years of reserve? How would the pension be calculated? Thank you!
America loves to think that they are special. There are lots of militaries in the world where you can get your pension even before you hit 40 years of age.
Enjoy your channel and the knowledge you give! I hope you can stay and make it a career–it'll be the best decision you ever make–I love each month a retirement check rolls in and for the rest of my life! Not sure where you got your data on COLAs but I wish we got 2.75% annually–it's usually less than 2 percent–sometimes none at all!
What happens to your pension if you die after you retire but before that 85 year expectancy? Does it get payed out in a lump sum to your beneficiaries? I have four children and as a single mother I’m trying to set them financially by doing 20 years of service while serving my country.
I love your videos. You get down to the numbers and explain it very well. I am first term enlistee and have considered separating because I have an office job, but I have four children I need to provide for. I like how you mention…”how much are you walking away from… this was a wake up call to stay in my full 20. Thanks again.
My significant other is about to get discharged from the military after 19 years of service because he believes the COVID -19 vaccine is the mark of the beast.
Isn’t it true that you can withdraw TSP without the penalty in the year you turn 55? You keep saying age 60 in the video.
11:58 that Culver's pic xD
You got a good head on your shoulders young man. Don't let anybody try to convince you that you're plan isn't the right one.
All that crap about walking away from this or that if i only did x years makes no sense, you're walking away from the whole pension regardless if you leave before 20 years of service.
Hi Jake, I need to select between the BRS and legacy system and am not sure which one to choose. I would like to do 20 years of service, and plan to stay in so the high 3 is attractive. However, if I did BRS I would plan to contribute the maximum, or close to it (20-30% of income). Which one do you think I should choose? What is your gut? Thanks!
What is TSP?
I retired at 38 as an E-7 and have had no problem living off my pension.
That said, I did buy a couple houses while I was in. Basically, when I would get stationed somewhere stateside I would buy a house there and then rent it out once I was stationed elsewhere. Thus, I had a lot of equity built up in them that I never had to actually contribute to since the military paid the mortgage when I lived in them and the renters once I moved.
It was less than $100k equity though. However, that along with $40k I had in the bank I was able to pay cash for the house I retired in. I had hardly any money left in the bank at that point. However, 10 years later I had about $70k. And that was with no investing or work or anything like that. Just plain saving what I didn't spend out of my pension. So, I'm pretty sure I could have lived off the pension even if I had retired with virtually no prior investments. It would have been tight though.
Btw, I retired in 2004. So, it has been 18 years now. I currently have about $200k cash on hand plus another $120k equity in the house. The first 10 year figures mentioned above are more realistic though since in the past 8 years I sold my house so I could move back to the state I grew up in (where property values were lower also)… and I've been investing in stocks, etc. Something I should have been doing in the first 10 years also…lol. Heck, all the way through my service time also. I would probably be a millionaire easy by now had I done that. Granted, I got a divorce not long before retirement… so maybe a half millionaire;)
If you don’t think you can make it 20 years in your current branch… transition over to the Air Force for the rest of your career!
0:45 "Now you probably can't survive off that pension alone…" Challenge accepted.
Is it hard to do 20 years as an officer the whole time because I heard you can get kicked if you don’t promote at times
Sorry I don’t know if you covered this but how does pension work if you do like 10 years active and 10years reserve. Can I get my pension after 20 years? Or will I have to wait till I’m 60. How much of my base salary do I get. Thanks. I plan on commissioning next year with Army ROTC. So I’ll be doing BRS
sir my father served for 30 years how to be computed and where or what office to be complaint
sir good afternoon . may I ask to you how much pension of my father in the philippines retired as stop sgt. year 2003 and what are the benefet, you know sir onlly 10,000 monthly recived not recievibg su kam sum
4 years out of 20 is .2 not .25…..