Military Retirement Pay - The Basics
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If you are, have been, or intend to be a lifer in the military, you may at some time be curious about how your retirement benefits will work. While the military’s retirement plan is fairly simple, there are a few basic concepts to know.
How Is Military Retirement Paid Out?Once you are eligible, you will receive 50 percent of your base pay as soon as you retire. Depending upon how many years you have put in beyond the number of years required for eligibility, you may receive up to 75 percent of your base pay.
How Many Years Are Required For Retirement Eligibility?The number of years required to be eligible for standard retirement pay will vary depending upon the branch of service you are in. In the Army and Air Force, the number is 20 years. In the Navy and Marine Corps, you are required to put in 30 years of service before retirement eligibility. If you have less than 30 years service, you can be transferred to the reserve and receive “retainer pay” until you reach 30 years. However, retainer pay works the same way as retirement pay and is effectively the same as far as the payment you receive.
What Else Should Service Members Know About Military Retirement?Military retirement is not the same as civilian retirement. You are not vesting in a retirement account while drawing active duty pay and if you retire before putting in your 20 years, you get nothing. In addition, retirement is not always permanent in the military. Once someone retires from their civilian job, they will never be called back to work. While it is unlikely that retired military personnel will be recalled, there is a provision made for it by the Department of Defense and it is a possibility.
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