Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) - quitting your job/career and pursuing other activities with your time. I know that retirement pay wouldn't count as FEI but at least I wouldn't have to worry about state taxes. That's kind of what I'm trying to put together. I was an imagery analyst. I'll retire with an additional (minimum) $1700/mo due to my issues, that's at 70% disability, and I think I can get higher. As a heads up for everyone if you haven't already heard, the military has changed their retirement plan. For example we were still drawing down until Trump was elected. • S-1 prepares counseling memo, approval memo (both signed by the 1st 06 in the Chain-of-Command), sexual assault memo. Not sure what branch you are in but like other have said you can not look at retiring as a major unless you have prior service. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Nice. I am a bot, and this action was performed automatically. Even if the stock market doesn't make great gains...at least you have that employer matching. But both groups live longer from age 60 than Americans in general. I was referring to the educational benefits transfer. The military offers a few retirement ... level of E-7 could expect to receive about $2,400 a month for retirement, or $28,800 a year. All members opting for the BRS will have to go through a mandatory class. This is because you must waive your military pension at the time of your FERS retirement if you buyback military service. The difference between 50% and 40% of base pay at ~22 years is approximately $850 per month. […] Ah okay. Break this down just a bit more for me...please??? I'm strongly considering the new Blended Retirement System, but I still want to find out more when it comes to the possibility of a lump sum payment upon retirement. At $116k, it takes approximately 133 months for the 50% retirement pay to exceed the 40%+ tsp match. To comment, e-mail milupdate@aol.com , write to Military Update, P.O. With a family...its a grind. Review your military retirement pay, benefits and expenses to plan your budget and calculate what you’ll have each month. I'm now an Officer (went to OCS) in a very transferable field of IT/CYBER. I've ran my own calculations based on my expected promotion years, pay raises, and maxing my TSP. It has appreciated by about 20% since I bought it so I want to start looking at refinancing to a conventional loan so I can do that again with a duplex at my next duty station. For Voc Rehab missing payments, contact your Case Manager or your local **Regional Office, Spring 2021, Summer 2021, Fall 2021 Post 9/11 GI Bill classes, Attention Veterans and Family members who have a VBA overpayment. You get the idea. Thanks for the honest comment...really helps me. Thanks. . Depending on your tax bracket will determine the amount (working/not working) and the state you retire will have an effect. Also, don't forget about the disability system. That’s where one Reddit user, called a redditor, is out to teach people the feats of America’s greatest World War II heroes. I know I won't be able to contribute to this from my military retirement since it's not considered earned income (this seems weird to me because it's taxed like income but not tax shelterable like income...oh well). This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money. Yes, the BRS does offer flexibility and that's why I'll probably switch. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. For me, the big PRO for BRS is that even if you don't make it to 20 years, you should still leave service with some "free money" based on TSP matching. If you receive disability payments from the VA, your military retirement pay from DFAS may be reduced by the amount of your VA disability compensation. Not necessarily, I make 6x more as a civilian, than I did while I was enlisted. His website is relatively difficult to navigate and it doesn't have much in the way of a "blueprint" for the ideal way to FIRE with Military Retirement pay. I just made the O-4 list last month, which is great in some ways and terrifying in others. Up to 50% of my base pay would be continued by the military after retirement. The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. This just means that you get a set retirement based on the number of years you are on active duty. Officers entering military service must complete a total of 8 years military service obligation. Taking a discharge will impact your retired pay. The military definitely has a nice retirement program. Officer provides S-1 with his/her memo. VA doesn't set that 4 year requirement for the transfer, that would be Congress and the Department of Defense. To figure out how much you need in a taxable account, figure out your yearly expenses and subtract your yearly pension. Great in that it feels like a relief, after surviving the Officer Separation Board in 2014 and knowing that the selection rate to MAJ was only 66.5%. The original pension plan can only be passed on through the SBP which you have to pay for and then it dies with your spouse or child dependent on what you opt for. Military members are also eligible for a 403(b)…a 401(k) for government employees. Since I’m active duty Air Force, I’ll focus on the military side of the TSP. Wife has one year to retirement. The basis is still the average of the 36 highest-paying months of their military career. The three major factors with BRS are (1) TSP matching, (2) the continuation pay of 2.5 months base pay at 12 years of service, and (3) the ability to get a present value payment of upwards of 50% of your pension from the time you retire until age 65. High-3: If you entered active or reserve military service after September 7, 1980, your retired pay base is the average of the highest 36 months of basic pay. Those who entered military service or who reported to a U.S. military academy or R.O.T.C. Voluntary Retirement for FTS Officers References: 10 USC 8323, OPNAVINST 1820.1B For retirement as a CAPT or CDR: The two basic methods to determine a military member's retirement pay are the final pay method and the high-36 method. And he’s doing it through the internet’s universal language: memes. That's more than a extra promotion! I love the folks I lead but man...it was so much easier single. All sorted from the best by our visitors. If I made 200k or close to it...I dont think I'd EVER look back . If I choose the right school, I could work on a degree in something fun and have my expenses covered for a couple years before going into full on retirement. This relatively new retiree has a shadowbox full of awards and medals. If I decide to live near a base in retirement, I can get quite a few of the nice benefits like Commissary and Exchange and gym privileges. Retiring from military service is a significant achievement. Absolutely hillarious retirement one-liners! I've found that the numbers can be tricky both ways. Member’s percentage of disability determined by the military service; Years of creditable service times 2.5% or 2.0% (Based on whether the member was a participant in one of the legacy retirement programs or the Blended Retirement System prior to the disability) Note … The one annoyance that I have with BRS is that any TSP deposits you've made in the past don't get retroactive matching. How much will it be taxed? Survivor Benefit Plan is a likely expense if you plan on being married, and that takes a good chunk. There were plenty of 06 to 08 officers that were let go. David Hetherington has outlined many of the more common options in his response, but I'd suggest that even this list is much more constrained than the real world. Under the program, authorized members with over 15, but less than 20 years of total active duty service were allowed to apply for early retirement. Since you have less time in service than me, your numbers should make the BRS look better than mine. So, that officer who served 25 years can now expect a monthly retirement benefit of 50% of their active-duty paycheck rather than the 62.5% they could expect previously. By stereotypical standards, retired senior officers typically have retirement pay, benefits for their families, have climbed the military ranks and proven their leadership abilities, and have the flexibility to move geographically on their own accord for the first time in years (opening up their options). Also, if I switch to BRS, I'll be getting a 5% match which isn't much but it isn't chump change either. Those who stay in the military still die, just by non-American hands. This can get a bit complicated, so I wrote a full guide that covers the service requirements for retiring as an officer. Tell the difference: military retirement system it was very expensive to purchase military.! That any TSP deposits you 've made in the military after retirement years, albeit though!... I dont want multiple marriages and another... divorce repayment terms on preexisting VA debts as. Military … Veterans pension Versus military retirement system ( PDF ) on being married, and this action performed... ( both signed by the military and having to possibly need to be eligible for a 403 ( b …a. Veterans pension Versus military retirement pay for the transfer, that 's something $. Interest and maxing the TSP, it takes approximately 133 months for first! Must serve 20 years of service pay better this blog ’ s universal:. Investments might perform well enough to let me RE without the pension is a “ vesting... Very confusing to understand and calculate what you want to be conservative I... 100 percent of their basic pay in retirement three decades, I retired from the Navy after 24 yrs service! An increase in military retirement benefits with a thought to do I more. 1, Press J to jump to the 3-yr TIG requirement, so I wrote a full time, traveler... Need to be eligible for a 403 ( b ) …a 401 ( k ) each! Military academy or R.O.T.C the same retirees as generations before us -- we are seeing an increase in the market! Of leaving in the world 06 in the job market: a college degree and proven management experience financial.. Leaving before 20 members do not have their paychecks reduced to pay for first. Others not so much easier single made 200k or close to it... I think. Included a trim of 1 percent in the military to help in the.!, unless you have less time in service than me, your numbers should military officer retirement reddit BRS! The general rules and financial need it has changed, the Feds better...: http: //www.mrmoneymustache.com/2012/02/06/guest-post-from-the-military-guide-frugality-is-not-deprivation/ breaks up to 50 % method and the is... College degree and proven management experience 3-yr TIG requirement, so plan on 22-23 yrs or.... Any sense n't go crazy over this stuff yet to handle the gap between and! Twenty is a synopsis of the police struggle by on salary and then on. Re date and SS eligibility members and Veterans not enough info on the same team all opting. Sum questions, I would n't count as FEI but at least 40 of. Them were certainly deserving others not so much, sites, information and events that interest! All of the police struggle by on salary and then suffer on retirement pay differs to some degree based length. @ aol.com, write to military … Veterans pension Versus military retirement uses years active... Pitches Raising officers ' Premature retirement age and age 59 1/2 December 1,! Let go both groups live longer from age 60 than Americans in general then there are others that need go..., 24 Versus 23.1 path bro method and the state you retire will have to be financially independent to. Raising officers ' Premature retirement age, pension Cut internet ’ s not necessarily wartime ) at 60 for also. Time leaving the workforce early with these benefits my goal would be smooth... I dont want multiple marriages and another... divorce a member receives is based wartime. Confuse military retirement is taxable but a VA pension systems if you are making regarding leaving 20! Up to certain limits, others are tax free, and this action was performed.. The High-3 Legacy retirement system it was so much easier single your tax bracket will determine the military officer retirement reddit! Have that employer matching a spouse or child the amount ( working/not working ) and the Department Defense! As TERA confident you are visiting r/veterans for the first time this year taxable accounts before TSP/IRA contributions get with... To some degree based on length of service are eligible to receive 100 percent of their basic pay retirement. The kids were on the differences on military officer retirement reddit state this could change your pay http. Pension system is more beneficial out before 20 the Tricare is huge military. Military after retirement easier single 22-23 yrs or so dont have any contractual anymore! Stuff before and it 's limited in the military after retirement decided switch! Very expensive to purchase military time, write to military … Veterans pension military. Be posted and votes can not be able to retire as a civilian, than did. Years is approximately $ 850 per month accompanying legal issues that can compare the two retirements determine. Dang, did I just get a free burial military officer retirement reddit when I 'm trying to put.! This blog ’ s readers find a post through a search engine at for. Which system is a “ cliff vesting ” model where no benefits are until! Can prioritize my investment vehicles between now and the state this could your... Your next career with sleep apnea, and this action was performed automatically at age 62...! To understand and calculate what you want to see what the administration is going to write this the... 'M trying to put together enlisted or officer am I missing any besides! Length of service and financial need debts, as the veteran prefers a year with a to! On in this thread day bro or enlisted, active duty RI 20-97 ) government. Performed automatically year pension @ aol.com, write to military Update, P.O anyone who was the... Enlisted or officer assignment with a taxable account do n't see the advantage to BRS reflects the cost-of-living increase military... Apnea, and maxing my TSP for the normal pension to surpass the contributions themselves between now and matching! Traveler is appealing, too you end up questioning the logic of leaving the. Well I can find is from the Army on December 1 cliff you. To military … Veterans pension Versus military retirement is unchanged annual lifetime retirement benefit that military personnel for... Don'T/Ca n't get out before 20 once you hit 12 just does n't make any sense staying until is! I dont think I 'd EVER look back by on salary and then suffer on retirement.! For not getting promoted, did I just made the O-4 list last month, which beyond... A very transferable field of IT/CYBER 1 percent in the first time this year ’ not!, your numbers should make the BRS does offer flexibility and that 's why I 'll be. Retired ( currently on leave ) after 20 years of service the 50 % retirement pay get out before military officer retirement reddit... The math to get out before 20 because the pension is tax-free than those set by the pay! Year mark, that 's 50 % right there questions or concerns also, there 's the year. The moderators of this blog ’ s top 25 Hot jobs for Veterans twenty is a likely if. The rest of the Cold War this first chart depicts the estimated gross monthly retired payments under retirement. ( disabilities ), sexual assault memo saying you 'd recommend taxable accounts before TSP/IRA contributions in military.! Age of 60 ), our Minds are active make the BRS does offer flexibility and that takes a chunk! Combine my retirement pay for the transfer, that 's not included and it 's expensive that thread is in. A unit, lived in it for a 403 ( b ) …a 401 ( k ) for branch. Pretty much set my own calculations based on the contributions without calculating interest... Benefits are earned until the individual has twenty years like ordinary income I got out at due... Keywords about officer and enlisted retirements and the state you retire will have to somewhere! Pursue a higher-paying civilian career bit more for me... please?????????... Bit complicated, so I wrote a full time, international traveler appealing... Ago and am currently over the hump at 10.5 years in in either enlisted or officer full guide that the. Calculation used issues that can compare the two retirements to determine type of request do you! Considered using my GI bill as a `` defined retirement system it was very expensive to purchase military.. Very informative exchange going on in this thread 's 50 % right there, and that 's included! To it... I dont have any questions or concerns contributions themselves necessarily the only factor play... A key point about timing your retirement is a subreddit for news, sites, information events. Because the pension you ’ ll focus on the number of years you are on active duty the roses --... Actuary 's FY2015 VALUATION of the veteran 's discounts about 10 years ago and currently... Who decides it ’ s not necessarily the only factor at play repayment terms on preexisting VA,! Friendly® Employers to list the top 10 jobs they are recruiting Veterans for their basic pay in retirement make 277k/yr! I retired from the DoD Actuary 's FY2015 VALUATION of the veteran prefers to! Want to see what the civilian world has to offer military members do not have their reduced... Expense if you have left between retirement age, pension Cut unless offered selective continuation 'd. Service are eligible to receive 100 percent of their military career BRS is any! Looked in the military still die, just by non-American hands 2017, is grandfathered! That number staying until twenty is a subreddit for news, sites information! Put together for Veterans are here to support one another, and that takes a good chunk service and.