Military Retirement: Fill & Download for Free

Retired E7, 21 years active duty.My retirement after taxes is just over $2000. I could do it. But, I was smart about my time in the military. I bought my “forever home" early, so, my mortgage is just about done. Both of my vehicles were paid off before I got out, they're about 10 years old now and will likely last another 10. I mostly eat at home. I also have some supplemental income. I invested a little bit. Plus, I have a pretty decent set of gig specific skills. I can do a bit of carpentry, welding, and I'm pretty good at some soft skilled work. Every blue moon I do some substitute teaching (I gave teaching a go as a second career, but wasn't particularly fond of it.)So, it is quite possible, but it won't be a full retirement. You'll probably need to pick up some part time, to push you up to about $3000 per month, but that shouldn't be too hard or taxing.I have a bit of disability that pushes me up to that $3000 mark on top of my existing investments. As such, that money stays invested until I turn 65 and can pull social security on top of it. And I do only so much work, and that's for extra money for trips and Christmas.People who stayed in longer, or who hit a higher pay grade will have an easier time. I believe an O4 with 20 years will pull in around $4000 per month retirement. They can definitely live off of that.

Military retirement historically kicked in at 20 years of service, and would generally pay half of your military paycheck.For a staff Sergeant (E-6), with 20 years in, base pay is currently $47,331 a year. Half that is $23,666.A full time, minimum wage employee in the US makes, currently, $15,080 a year. So yeah, military retirement is quite a bit better.Note the following:I’m not counting medical benefits, which are quite good for retired military (tricare). It by all means has it’s issues, but compared to what most people get…I’m not counting other benefits that being retired military has.According to google, most enlisted retire at E-7, not E-6, which has even higher pay rates.Also, that retirement is at 20 years, which is substantially sooner than nearly any civilian job. Retirement at 40 leaves substantial opportunity for a second career, all the while getting a decent check from the military. Especially given that the GI bill will pay for an education for whatever you want that second career to be.If you are poor upon retirement from the US military, you are probably doing something wrong.

Military retirement has changed. At one time, a person could serve for 20 years of active duty in the military (any branch) and retire with 1/2 of their base pay for the rest of their lives, starting when they retired. If they remained on active duty for 30 years, they would be getting 3/4 of their base pay for the rest of their lives.Many military people were able to retire at a reasonably young age (as young as 37) and go on to another career; many chose to go to work for the federal government, where their military service would count as seniority in federal jobs and they could retire a second time, again at a reasonably young age, and then look forward to receiving Social Security at the usual age of retirement. Those that retired from the military and then federal jobs were called ‘double-dippers’ and those that went on to get Social Security as well were known as ‘triple-dippers’. Such people could have a relatively stress-free and comfortable retirement; their medical bills would be covered by the military and they’d have three pensions.Those days are gone. First, double-dipping was eliminated. Then, they did away with the standard retirement and replaced it with a system that is somewhat similar to a 401(k) retirement plan.One drawback of military service in the old days was that if you did not stay the full 20 years, you got ZERO when you left. I served for six years. I get zero. Many served for 18 or 19 years and also get zero.[1][1][1][1] Link to current military retirement schemeThe new system is complicated and I frankly do not understand it, but they say it is more fair to those who don’t serve a complete 20 years to get the retirement previously offered. I believe it also does not kick in immediately upon getting out of the service like it used to, but I could be wrong about that.Now, is it ‘worth’ doing? That’s for the individual to answer. I didn’t stay 20 years, but many do.As to doing a four-year enlistment and getting out, that’s what most people who serve do. One tour of active duty and then out. Many find the experiences, education, and training they receive are complimentary to their civilian careers afterwards. I was a military policeman; at first it was helpful when I got out, as I thought I would work in law enforcement (and I did for awhile) but I ended up in Information Technology and my military service hasn’t really been of any particular use with one exception; I learned a lot about character, endurance, and leadership along the way.Footnotes[1] Retirement[1] Retirement[1] Retirement[1] Retirement