Retirement Information for the National Guard
Whether your retirement is in the distant future or next couple of years, it's never too early to start budgeting, making plans and setting goals. As a member of the National Guard, you will receive competitive retirement pay in addition to Social Security benefits for holding a civilian job, if applicable. Once you have an understanding of how much you'll receive in retired pay, you can make a better judgment on whether you'll need to invest extra money for later in life.
Other People Are Reading
-
Requirements
-
In order to receive Guard Retirement benefits, you must be at least 60 years old and have accrued 20 or more years of work. You can retire from Guard at any age, but age 60 is the earliest you may actually start collecting benefits. Social Security Retirement benefits work in a similar way, only you must be 62 to start receiving Social Security Retirement.
Types
-
There are two types of Guard Retirement benefits, and the one for you depends on your date of entry into service (DIEMS date). If your DIEMS date is before Sept. 8, 1980, your pay will be calculated using the Final Pay Plan. If your DIEMS date is after Sept. 8, 1980, your pay will be calculated using the High 3 Plan. The main difference between the two plans is that Final Pay uses your salary at the end of service to determine your retirement pay, while High 3 uses your average pay over your highest-paid three years (36 months) of service to determine the amount of your retirement benefit.
-
Calculations
-
To estimate your retirement pay, you can use a retirement calculator (see "Resources") or do it by hand. First, find years of service by dividing your total retirement points by 360. Find your "retirement multiplier" by multiplying your qualifying years of service by 2.5 percent. For example, 20 years of service would give you a multiplier of 50 percent. Next, multiply either your Final Pay or High 3 monthly salary by your retirement multiplier percentage. This number is your estimated monthly benefit.
Considerations
-
Regardless of how many years you've served, you cannot receive more than 75 percent of your previous salary as retirement pay. Also, your retirement pay won't automatically start when you turn 60 --- you'll have to fill out an application for benefits, something you should receive before you turn 60. Don't hesitate to contact the military if you haven't received retirement information near your 60th birthday, since you will see a reduction in benefits if you wait beyond age 66 to apply.
Exceptions
-
The U.S. passed a law in 2008 that allows some Guard members to start receiving benefits before age 60. To receive early benefits, you must have been deployed for war or national emergency after Jan. 28, 2008. If you qualify, your start date for retired pay will be reduced by three months for every 90 consecutive days you spend mobilized.
-
References
- Photo Credit VisionsofAmerica/Joe Sohm/Photodisc/Getty Images
