Military Retirement Pay Guide
Retiring from the military is a major financial milestone — and the rules behind your pension, Thrift Savings Plan, and survivor benefits are easy to get wrong. Here is how the pieces fit together.
How the Pension Is Calculated
Military retired pay is a percentage of your base pay — not your total compensation. Under the legacy High-36 system, you earn 2.5% of your highest 36 months of average base pay for every year of service: 50% at 20 years, 75% at 30. Under the Blended Retirement System (BRS), which applies to anyone who joined in 2018 or later (and those who opted in), the multiplier is 2.0% per year — 40% at 20 years — but the government contributes to your TSP along the way.
High-36 vs. the Blended Retirement System
High-36
Simple and generous at 20+ years, but all-or-nothing: leave at 19 years, 11 months and you receive no pension at all. Your retirement wealth is entirely in the monthly check.
Blended Retirement System
BRS adds an automatic 1% of base pay to your TSP plus matching contributions up to an additional 4%, is portable if you separate before 20, and includes a one-time continuation pay mid-career. For members who invest their TSP matches, BRS often produces more total retirement wealth than High-36 — the pension is smaller, but the invested account can more than make up the difference.
TSP, SBP, and Other Pieces
Your Thrift Savings Plan is the tax-advantaged investment account that turns a good pension into a comfortable retirement — contribute at least enough to capture the full match under BRS. The Survivor Benefit Plan (SBP) lets you pass a portion of your retired pay to a spouse after you die, at the cost of a monthly premium; weigh it carefully against life insurance. VA disability compensation is tax-free and can significantly change your effective income: under Concurrent Retirement and Disability Pay, most retirees with a 20% or higher service-connected rating keep both checks. Finally, remember that retired pay receives annual cost-of-living adjustments, and states treat military retirement pay differently for taxes — some exempt it entirely.
Model Your Retirement in Mission Ready
The Retirement & Separations center in Mission Ready lets you model your pension under either system, adjust for inflation and COLA, simulate leaving earlier or later, and plan the transition timeline around your target date. Create a free account to save your projections, or run the numbers as a guest.
Frequently Asked Questions
How much is a military retirement pension?
Under the legacy High-36 system, you receive 2.5% of your average highest-36-months base pay per year of service — 50% at 20 years, 75% at 30. Under the Blended Retirement System, the multiplier drops to 2.0% per year, but you receive government TSP contributions of up to 5% of your base pay.
What is the difference between High-36 and BRS?
High-36 pays a larger pension multiplier (2.5% per year) but nothing extra toward your Thrift Savings Plan. BRS pays 2.0% per year plus automatic 1% and matching TSP contributions up to 5% — which can leave BRS retirees ahead, especially if they leave before 20 years.
Can I receive both military retired pay and VA disability?
Retired pay is normally offset dollar-for-dollar by VA disability pay, but most retirees with a 20%+ service-connected rating recover it through Concurrent Retirement and Disability Pay (CRDP), and those with a 50%+ rating and other criteria may qualify for Combat-Related Special Compensation.
Educational information only — official retired pay calculations come from your service's finance office and DFAS.