If you have served honorably in the U.S. military for more than 20 years, you may be eligible for retirement income. Retirement can give you a solid financial future and benefits are generous; receive up to 100 percent of your pay for the duration of your life -- no matter how old you are when you retire. How much you will receive for your military retirement depends upon when you entered the service and how many years you served.
Things You'll Need
Find out the date you entered service. For retirement calculation purposes, the calculations will differ according to which year you entered service; If you entered the service before September 8, 1980, you will be on the Final Pay retirement plan; if you entered service between September 8, 1980 and July 31, 1986, you will be on the High-3 retirement plan. If you entered service on or after August 1, 1986, you have the choice of High-3 or Career Status Bonus/Redux. You'll be asked to choose in your 15th year if you want High-3 or Career Status Bonus/Redux.
Find your base retirement pay. For Final Pay calculations, the retirement pay formula is your monthly basic pay at the time of retirement, and for the High-3 and CSB/Redux your base pay is your average monthly pay for the highest 36 months of service. You may need to look at your pay stubs for the last few years or consult with your personnel department to find your highest pay periods.
Multiply your base pay by 2.5 percent for each year of service for Final Pay and High-3 plans. For example, if your base pay was $2,000 per month and you served for 20 years then your retirement pay will be .025 x 20 x $2,000 = $1,000 per month. For the CSB/Redux plan, multiply your pay by 2 percent for the first 20 years and then 3.5 percent for each additional year.
- Photo Credit Jupiterimages/Comstock/Getty Images
Is Military Retirement Pay Taxed?
Regular retirement pay is subject to federal taxes, with some exceptions. However your state government may offer a tax exemption.
Army 20-Year Retirement Benefits
Active-duty, reserve and National Guard soldiers in the United States Army are eligible for retirement after only 20 years of service. Retired...
How Much Do You Get Paid in the Marines?
The U.S. Marine Corps is a branch of the U.S. Navy who trains its members to attack as a mobile amphibious force....
What Is a Military Pension?
The Department of Veterans Affairs (VA) helps veterans to access several different types of public benefits, find jobs, receive health insurance coverage...
Do I Have to Pay Taxes on Military Retirement Pay?
Military retirement is taxed by the federal government like any other income earned during a tax year. Many states however, offer full...
Steps to Obtain Military Medical Retirement
There are many different reasons you may need to apply for medical or disability retirement from the military. In general, there isn't...