Military Pension Calculator
Estimate your potential annual and monthly military retirement pay based on your years of service and average basic pay under different retirement systems.
Understanding Your Military Pension
A military pension is a defined benefit plan that provides a monthly income to service members who complete a minimum number of years of service, typically 20 years. The amount of your pension is primarily determined by your years of service and your average basic pay during your highest-earning years, as well as the specific retirement system you fall under.
Key Components of Military Pension Calculation:
- Years of Service: This is the total number of creditable years you have served in the military. Generally, the more years you serve, the higher your pension multiplier.
- High-3 Average Basic Pay: This refers to the average of your highest 36 months (3 years) of basic pay. This figure is used as the base for calculating your pension. It's important to note that this is basic pay only and does not include allowances like BAH (Basic Allowance for Housing) or BAS (Basic Allowance for Subsistence).
- Retirement System: The specific rules for calculating your pension depend on which retirement system you are under. The two most common systems for current and recently retired service members are the High-3 System and the Blended Retirement System (BRS).
The High-3 System
The High-3 System applies to service members who entered the military between September 8, 1980, and December 31, 2017, and did not opt into the Blended Retirement System. Under this system, your annual pension is calculated as:
Annual Pension = (Years of Service × 2.5%) × High-3 Average Basic Pay
For example, a service member with 20 years of service and a High-3 Average Basic Pay of $6,000 would receive an annual pension of (20 × 0.025) × $6,000 = 0.50 × $6,000 = $3,000. This would be $250 per month.
The Blended Retirement System (BRS)
The Blended Retirement System (BRS) became effective on January 1, 2018. It applies to service members who entered service on or after January 1, 2018, or those who entered prior to that date but opted into BRS. BRS combines a reduced defined benefit (pension) with a defined contribution plan (Thrift Savings Plan with matching contributions) and a mid-career retention bonus (continuation pay).
Under BRS, your annual pension is calculated as:
Annual Pension = (Years of Service × 2.0%) × High-3 Average Basic Pay
For example, a service member with 20 years of service and a High-3 Average Basic Pay of $6,000 under BRS would receive an annual pension of (20 × 0.020) × $6,000 = 0.40 × $6,000 = $2,400. This would be $200 per month. While the pension multiplier is lower, BRS offers additional benefits through the TSP.
How to Use This Calculator:
- Enter Years of Service: Input the total number of years you expect to serve or have served.
- Enter High-3 Average Basic Pay: Input your estimated or actual average basic pay for your highest 36 months of service. If you're still serving, you might need to estimate this based on your current pay and projected promotions.
- Select Retirement System: Choose whether you are under the "High-3 System" or the "Blended Retirement System (BRS)".
- Click "Calculate Pension": The calculator will then display your estimated annual and monthly pension amounts.
Disclaimer: This calculator provides an estimate based on the information provided and simplified formulas. Actual pension amounts can vary due to factors such as cost-of-living adjustments (COLAs), specific service dates, and other individual circumstances. For precise figures, consult with a financial advisor or your military pay and benefits office.