How to Get Information on Military Retirement Pay
If you are ready to retire from the military, or looking at the financial rewards of serving, understanding military retirement pay can be a challenging task. Retirement in the Army or Air Force can begin after 20 years of service. However, enlisted members of the Navy and Marine Corps receive their pay from their twentieth through thirtieth year of service as members of the Fleet Reserve, which counts as years of service toward retirement.
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Instructions
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Gather the personnel records that document your time of service. Your total time of service will be rounded to the nearest month. Each month for an incomplete year is considered 1/12 of a year, or .08 years. Knowing how long you have served will help to determine how much you will get paid when you retire.
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Multiply your years of service by 2.5 percent to determine your service multiple. This is the percentage of your base pay that you will receive while retired.
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Collect your financial records and document your pay history. You will need your pay history to calculate your base pay for retirement. The method for determining your base pay depends on when you started active duty, but it is generally calculated as the average monthly pay of the last 36 months of your career or the average monthly pay of the highest-paying 36 months of your career.
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Stay up to date on retirement policies and pay changes. Contact the Defense Finance and Accounting Service for updates.
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Tips & Warnings
If you retired early, under the Temporary Early Retirement Authorization, you may be able to increase your service multiple by serving your community.
You need to pay income tax on your retirement income. You do not have to pay payroll taxes for social security.
