Military Retirement Calculator
Calculate military retirement pay under the Blended Retirement System (BRS) or legacy High-3 system. Estimate pension, TSP contributions, and continuation pay for service members.
Related Calculators
About This Calculator
Military retirement is one of the most valuable benefits for service members who complete at least 20 years of service. The military pension provides guaranteed, inflation-adjusted income for life starting immediately upon retirement - no waiting until age 59½ like civilian retirement plans.
Two Main Retirement Systems:
- Blended Retirement System (BRS): For service members who joined after January 1, 2018 (or who opted in). Combines a smaller pension with TSP matching.
- High-3 (Legacy): For service members who joined before 2006 and didn't opt into BRS. Higher pension percentage, no TSP match.
Military Pension Formula: Pension = High-3 Base Pay × Years of Service × Multiplier
- High-3: 2.5% per year
- BRS: 2.0% per year
Key Benefits:
- Immediate pension at any age after 20+ years
- COLA (cost of living adjustments) annually
- TRICARE healthcare for life
- Commissary and exchange privileges
- Space-A travel opportunities
This calculator helps estimate military retirement pay under different systems. For federal civilian retirement, see our FERS Calculator. For TSP projections, visit our 401(k) Calculator.
How to Use the Military Retirement Calculator
- 1Select your retirement system (BRS, High-3, or REDUX).
- 2Enter your planned years of service at retirement.
- 3Select your expected pay grade at retirement.
- 4Enter or verify your monthly base pay (high-3 average).
- 5Input your current TSP balance.
- 6Enter your TSP contribution percentage.
- 7Input your current age and planned retirement age.
- 8Review your estimated monthly and annual pension.
- 9Compare systems to understand the trade-offs.
- 10See COLA projections showing pension growth over time.
Blended Retirement System (BRS) Explained
Understanding the military's current retirement system.
Who's Under BRS?
Automatically:
- Anyone who joined military on or after January 1, 2018
By Choice:
- Those with less than 12 years service as of December 31, 2017 who opted in during 2018 window
BRS Components
1. Defined Benefit Pension (2.0%/year)
| Years | Multiplier | % of High-3 |
|---|---|---|
| 20 | 40% | 40% |
| 24 | 48% | 48% |
| 30 | 60% | 60% |
2. TSP Matching
Government Contributions:
- 1% automatic (whether you contribute or not)
- 1% match on first 1% you contribute
- 1% match on next 1%
- 0.5% match on next 1%
- 0.5% match on next 1%
- Total possible: 5% government contribution
3. Continuation Pay
Mid-career bonus at 8-12 years:
- 2.5x to 13x monthly base pay
- Requires 3-year commitment
- Varies by service and specialty
- Taxable income
BRS vs. High-3 Trade-off
BRS advantages:
- Portable (TSP belongs to you even if you leave before 20)
- Government TSP matching
- Continuation pay
High-3 advantages:
- 25% higher pension (2.5% vs 2.0% per year)
- Simpler calculation
High-3 (Legacy) System
The traditional military retirement system.
Who's Under High-3?
- Joined before January 1, 2006 and didn't elect BRS
- Joined between 2006-2017 and didn't opt into BRS during 2018 window
How It Works
Simple Formula: High-3 Pension = High-3 Average × 2.5% × Years of Service
Multiplier by Years:
| Years | Multiplier |
|---|---|
| 20 | 50% |
| 22 | 55% |
| 24 | 60% |
| 26 | 65% |
| 30 | 75% (max) |
High-3 Definition
What Counts:
- Basic pay only (not BAH, BAS, special pays)
- Average of highest 36 months (consecutive or not)
- Usually last 3 years for most retirees
Example Calculation
E-7 retiring at 20 years:
- High-3 average: $5,200/month = $62,400/year
- Multiplier: 50% (20 years × 2.5%)
- Annual pension: $62,400 × 50% = $31,200
- Monthly pension: $2,600
No TSP Match
Under legacy High-3:
- No government TSP contributions
- No automatic 1%
- No matching contributions
- TSP still available for personal savings
REDUX Retirement Option
The Career Status Bonus option (rarely recommended).
What Is REDUX?
REDUX was offered to those joining between 1986-2006 as an alternative to High-3. It's generally considered a poor deal.
How REDUX Works
Lower Multiplier
- 2.0% per year (same as BRS)
- But restored to 2.5% at age 62
Career Status Bonus (CSB)
- $30,000 lump sum at 15 years
- Taxable income
- Requires commitment to 20 years
COLA Reduction
- COLA = CPI minus 1%
- Restored at age 62 with one-time catch-up
Why REDUX Is Usually Bad
The Math:
- $30,000 bonus at year 15
- But lose ~$100,000+ over retirement due to:
- Lower pension (2.0% vs 2.5%)
- Reduced COLA until 62
- Compound effect over decades
Who Might Consider REDUX?
- Those with immediate financial needs
- Those planning to retire at exactly 20 years
- Those with shorter life expectancy
- Those who will invest the $30,000 aggressively
TSP for Military Members
Maximizing your Thrift Savings Plan for retirement.
TSP Contribution Limits (2024)
| Type | Annual Limit |
|---|---|
| Regular | $23,000 |
| Catch-up (50+) | $7,500 |
| Combat Zone Exclusion | $69,000 (total) |
Combat Zone Tax Exclusion
While Deployed:
- Contributions from tax-exempt combat pay
- Grows tax-free
- Withdrawals in retirement also tax-free
- Huge advantage for deployed members
Fund Options
| Fund | Description | Risk Level |
|---|---|---|
| G Fund | Government securities | Lowest |
| F Fund | Bonds | Low |
| C Fund | S&P 500 | Medium |
| S Fund | Small cap | Higher |
| I Fund | International | Higher |
| L Funds | Lifecycle (target date) | Varies |
Recommended Strategy
For Young Service Members:
- 80-100% stocks (C, S, I funds)
- Use L funds if unsure
- Take advantage of tax-free combat contributions
Near Retirement:
- Shift toward bonds (F, G funds)
- Consider L Income or balanced allocation
- Keep some growth for 30+ year retirement
VA Disability and Retirement
Understanding how VA benefits interact with retirement pay.
Concurrent Retirement and Disability Pay (CRDP)
Eligibility:
- 20+ years service
- 50%+ VA disability rating
- Disability related to service
How It Works:
- Receive full retirement pay PLUS disability pay
- No offset (previously had to give up $1 retirement for each $1 VA)
- Disability pay is tax-free
Combat-Related Special Compensation (CRSC)
Alternative to CRDP:
- For combat-related disabilities
- Any percentage (not just 50%+)
- May be more beneficial than CRDP
Which Is Better?
| Situation | Better Option |
|---|---|
| High disability, lower retirement | CRSC |
| Lower disability, higher retirement | CRDP |
| Combat-related injuries | Calculate both |
VA Disability Rates (2024)
| Rating | Monthly Payment (Single) |
|---|---|
| 10% | ~$172 |
| 30% | ~$524 |
| 50% | ~$1,075 |
| 70% | ~$1,716 |
| 100% | ~$3,737 |
Rates increase with dependents
Healthcare in Military Retirement
TRICARE benefits for military retirees.
TRICARE Prime
Cost (2024):
- Retiree only: $358/year
- Retiree + family: $716/year
Coverage:
- Military treatment facilities (MTF) priority
- Network of civilian providers
- Referrals required for specialists
TRICARE Select
Cost (2024):
- Individual: ~$180/year
- Family: ~$480/year
- Plus copays and deductibles
Coverage:
- Freedom to choose providers
- No referrals needed
- Higher out-of-pocket costs
TRICARE For Life (Age 65+)
Works With Medicare:
- Must enroll in Medicare Part B
- TRICARE pays what Medicare doesn't
- Very comprehensive coverage
- No TRICARE premiums (just Medicare Part B)
Dental Coverage
TRICARE Retiree Dental Program (TRDP):
- Separate enrollment required
- Monthly premiums vary by plan
- Good value compared to civilian plans
Pharmacy Benefits
Three Tiers:
| Location | Generic | Brand | Non-Formulary |
|---|---|---|---|
| MTF | $0 | $0 | $0 |
| Mail Order | $0 | $14 | $56 |
| Retail | $14 | $33 | $61 |
Pro Tips
- 💡Contribute at least 5% to TSP to maximize BRS government match.
- 💡Use combat zone tax exclusion to make tax-free TSP contributions.
- 💡Consider staying past 20 years - each year adds 2-2.5% to your multiplier.
- 💡Factor in TRICARE value ($15,000-20,000/year) when comparing to civilian jobs.
- 💡Get your VA disability rating established before or at retirement.
- 💡Understand CRDP vs CRSC to maximize combined retirement and disability.
- 💡TSP contributions from combat pay are tax-free in AND out of the account.
- 💡Legacy High-3 members should max TSP even without match - tax benefits remain.
- 💡Consider SBP (Survivor Benefit Plan) for spouse protection.
- 💡Military pension + second career + Social Security = strong retirement.
- 💡Document all injuries and conditions for VA claims before separation.
- 💡Use your GI Bill for education to boost second career earnings.
Frequently Asked Questions
Military retirement pay equals your high-3 average base pay multiplied by your years of service multiplied by either 2.5% (High-3) or 2.0% (BRS). For example, an E-7 with $5,000/month high-3 retiring at 20 years under High-3 receives $2,500/month (50% of high-3). Under BRS, the same E-7 would receive $2,000/month (40% of high-3).
