Retirement Pay Calculator Military

Military Retirement Pay Calculator

Estimate your potential military retirement pay based on your years of service and retirement system.

This is the average of your highest 36 months of basic pay, annualized. For example, if your highest 36 months averaged $5,000/month, enter $60,000.

function calculateMilitaryRetirement() { var yearsOfServiceInput = document.getElementById("yearsOfService").value; var high3BasicPayInput = document.getElementById("high3BasicPay").value; var retirementSystem = document.querySelector('input[name="retirementSystem"]:checked').value; var resultDiv = document.getElementById("retirementResult"); // Validate inputs var yearsOfService = parseFloat(yearsOfServiceInput); var high3BasicPay = parseFloat(high3BasicPayInput); if (isNaN(yearsOfService) || yearsOfService < 0) { resultDiv.innerHTML = "Please enter a valid number for Projected Years of Service."; return; } if (isNaN(high3BasicPay) || high3BasicPay < 0) { resultDiv.innerHTML = "Please enter a valid number for Projected High-3 Average Annual Basic Pay."; return; } var multiplier; if (retirementSystem === "high3") { multiplier = 0.025; // 2.5% per year } else if (retirementSystem === "brs") { multiplier = 0.020; // 2.0% per year } else { resultDiv.innerHTML = "Please select a retirement system."; return; } var annualRetirementPay = (yearsOfService * multiplier) * high3BasicPay; var monthlyRetirementPay = annualRetirementPay / 12; resultDiv.innerHTML = "

Estimated Retirement Pay:

" + "Annual Retirement Pay: $" + annualRetirementPay.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "Monthly Retirement Pay: $" + monthlyRetirementPay.toLocaleString(undefined, { minimumFractionDigits: 2, maximumFractionDigits: 2 }) + "" + "This is an estimate of your defined benefit annuity. It does not include TSP contributions or other benefits."; }

Understanding Military Retirement Pay

Military retirement pay is a defined benefit annuity paid to service members who complete a minimum number of years of service, typically 20 years. This calculator helps you estimate your potential retirement income based on the two primary retirement systems currently in place: the High-3 (Legacy) system and the Blended Retirement System (BRS).

The High-3 (Legacy) Retirement System

The High-3 system applies to service members who entered the military before January 1, 2018, and did not opt into the Blended Retirement System. It is often considered the most generous of the traditional retirement plans.

How it's calculated:

• Multiplier: 2.5% for each year of creditable service.
• Base Pay: The average of your highest 36 months (3 years) of basic pay. This is often your final 3 years of service, but not always, especially if you had a demotion or a period of lower pay.

Formula: (Years of Service × 2.5%) × High-3 Average Basic Pay

Example: A service member retires with 20 years of service under the High-3 system, and their High-3 average annual basic pay is $60,000.

• Retirement Multiplier: 20 years × 2.5% = 50%
• Annual Retirement Pay: 50% of $60,000 = $30,000
• Monthly Retirement Pay: $30,000 / 12 = $2,500

The Blended Retirement System (BRS)

The BRS became effective on January 1, 2018. It applies to service members who entered service on or after that date, or those who were already serving but opted into BRS during the open enrollment period (January 1, 2018, to December 31, 2018). BRS combines a reduced defined benefit annuity with a Thrift Savings Plan (TSP) component and continuation pay.

How it's calculated (annuity portion):

• Multiplier: 2.0% for each year of creditable service.
• Base Pay: The average of your highest 36 months (3 years) of basic pay.

Formula: (Years of Service × 2.0%) × High-3 Average Basic Pay

Example: A service member retires with 20 years of service under the BRS, and their High-3 average annual basic pay is $60,000.

• Retirement Multiplier: 20 years × 2.0% = 40%
• Annual Retirement Pay: 40% of $60,000 = $24,000
• Monthly Retirement Pay: $24,000 / 12 = $2,000

It's important to remember that the BRS also includes government matching contributions to your TSP, which can significantly boost your overall retirement savings. This calculator focuses solely on the defined benefit annuity portion.

Key Factors Affecting Your Retirement Pay

• Years of Service: The more years you serve, the higher your multiplier and thus your retirement pay. A minimum of 20 years is generally required for retirement.
• High-3 Average Basic Pay: This is heavily influenced by your rank and time in service, as basic pay increases with both. Achieving higher ranks before retirement will result in a higher High-3 average.
• Cost of Living Adjustments (COLA): Military retirement pay is subject to annual COLA, which helps maintain purchasing power over time.

This calculator provides a useful estimate, but for precise figures, always consult with a financial advisor specializing in military benefits or your service's retirement services office.