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Submariner, the check we get does pay some bills, especially mortgage. Cant complain...
I do not have a mortgage. We did a lot of investing during my career, so we were able to buy our homestead with cash.
I keep building improvements onto our farm [Solar Power, Solar Thermal, new barn, etc], but if I ever stop building on new things. I think that our Cost-Of-Living would consume about 1/3 of my pension.
One correction. The 50% is really not 50 at 20. You get 50% of your last 3 years averaged.
I think Active duty retirees financially make out better. At 38, you get a check for life, indexed..
Depends on when you retired... I retired in 1990 when 20 years was 50%, I retired at 22 years (about age 42) so I have been getting about 54% of my basic pay monthly (with some cost of living raises), since I retired from the military. I was offered a job as a gov contractor, which I did for 10 years, then pretty much retired doing a variety of things...
Military retirement pay has changed, it is a bit more complex. Given a chance I would do it again, but with a few smarter choices.
One correction. The 50% is really not 50 at 20. You get 50% of your last 3 years averaged.
In late 80s Congress changed it to 40% at 20. That quickly got handled and they changed it to 50% of high 3. So, even at 30 years you get 75% of your last 3 years in service averaged.
And dont forget CSB Redux, not even going to explain that nightmare. I think Active duty retirees financially make out better. At 38, you get a check for life, indexed..
You are right in some aspects but me and an active duty soldier compared retirement pensions about 6 years ago. We were both national guard soldiers in the same unit. I was an M-day reservist (part time) and he was an AGR soldier (active duty title-10). On the surface his pension for just straight military pay beat mine by about 1500 a month. Now granted I had 10 years of active duty and at the time 25 years of reserve duty. But then because I worked for the guard full time as a dual status technician I also had 25 years of federal service for a second pension and eventually 30 years of that with a buy back of my active duty time gave me 36 years of federal service. Even if I wasn't dual status and just worked for the feds full time and guard part time my retirement is the same. So Putting the two together I make up for his 1500 a month position and a bit more with my second pension. Plus while we both can contribute to TSP I got a match where he didn't. So in the long run he might be able to given find a job that has a pension when he is done at 40. I had to go to 60 or close to that for the military pension. He could get a 20+ year career and another pension or a 401k with a generous match and make up the difference. It is all in the way a M-day soldier approaches his military retirement.
But bottom line is at 22 he does start collecting. Where I had to wait until 60. But in the mean time my retirement pay didn't get calculated until I reached 60 so all the pay raises between 40 and 60 are lost to the active duty soldier but not to the reservist.
... But bottom line is at 22 he does start collecting. Where I had to wait until 60. But in the mean time my retirement pay didn't get calculated until I reached 60 so all the pay raises between 40 and 60 are lost to the active duty soldier but not to the reservist.
If you and I both enlist at 18, you go reserves and I go active. At 38 I retire and start immediately receiving pension checks every month. You continue drilling until age 60 before you begin receiving pension checks.
Assuming that we both live to be 80, I will have received pension checks from age 38 to 80 [42 years or 504 pay checks], and you will have received pension checks from age 60 to 80 [20 years or 240 pay checks].
As military pay goes up most years, so the pensions go up also.
If you and I both enlist at 18, you go reserves and I go active. At 38 I retire and start immediately receiving pension checks every month. You continue drilling until age 60 before you begin receiving pension checks.
Assuming that we both live to be 80, I will have received pension checks from age 38 to 80 [42 years or 504 pay checks], and you will have received pension checks from age 60 to 80 [20 years or 240 pay checks].
As military pay goes up most years, so the pensions go up also.
That may be true, but I was making more as a Guardsman all those years than you were taking home in retirement pay. Yes, I had to work for my pay and you didn't, but it's still income over and above my civilian income. And your retirement pay is 50 percent of E-6 pay from when you were 42. Because I stuck around longer, I got a couple more promotions. And my retirement pay is calculated off of E-8 pay in effect the year I turned 60, even though I retired just before I turned 53. I retired from my civilian job the month I turned 60. That was the time I needed the Guard retirement that is much larger than a 20 year active duty retirement.
That may be true, but I was making more as a Guardsman all those years than you were taking home in retirement pay. Yes, I had to work for my pay and you didn't, but it's still income over and above my civilian income. And your retirement pay is 50 percent of E-6 pay from when you were 42. Because I stuck around longer, I got a couple more promotions. And my retirement pay is calculated off of E-8 pay in effect the year I turned 60, even though I retired just before I turned 53. I retired from my civilian job the month I turned 60. That was the time I needed the Guard retirement that is much larger than a 20 year active duty retirement.
Bingo! Hand that man a cigar.
It is the same effect as waiting until 70 to collect SS. The break even point is what explains how this will work between the two service retirements.
It is the same effect as waiting until 70 to collect SS. The break even point is what explains how this will work between the two service retirements.
That brings me to another point. All that Guard time bulks up my social security earnings. I worked for the State of Alaska, which does not participate in social security. But most years I served in the Guard I exceeded the amount needed to meet the substantial earnings threshold. This is important, because of my State of Alaska pension I fall under the windfall elimination provision. So now I will also get a larger social security payment when I file than I would have had I not had all that Guard income over the years.
Funny thing is, I've never understood the attraction of doing 20 on active duty. I had no interest in uprooting my family every 3-5 years. I didn't want my children raised as milbrats. I got to serve in my hometown and spent 20 years with a great bunch of people. I also got to fly all over the world and I was able to pick and choose my trips. And with 6000 points, my retirement check is significantly larger than yours. And since this was a part time vocation, I also had a civilian job that provides an even larger retirement check than my military retirement. In most instances, a Guard or Reserve career provides the best of both worlds, especially if you've done one or two active duty enlistments.
This.
Husband is at 16 years, many of them Reserve. He also enlisted much older than most, and had degrees, civilian professional experience, retirement accounts, etc. prior to enlistment.
Flexibility, getting to pick and choose, to a large extent, when you feel like up and moving, higher odds of maintaining a stable home for children sans frequent moves unless you choose otherwise, and the ability to develop and maintain a solid civilian career while reaping various valuable benefits are all draws.
I never thought of the Military as a job nor did I have any plans to continue more than one enlistment. This was clear to me from the beginning otherwise I would have chosen a completely different field and branch. Glad to have done it, glad to be done with it.
In a way I kind of regret not staying in. I could of changed my MOS. Oh well....whats done is done.
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