Also called High-36 or “military retired pay,” this is a defined benefit plan. You'll need to serve 20 years or more to qualify for the lifetime monthly annuity. Your retirement benefit is determined by your years of service. It's calculated at 2.5% times your highest 36 months of basic pay.
For example, an enlisted member who retired after 20 years at the pay level of E-7 could expect to receive about $2,400 a month for retirement, or $28,800 a year. An officer retiring after 20 years at the pay grade of O-5 would receive about $4,700 a month, or $56,400 per year.
Bellevue, WA beats the national average by $9,506 (18.9%), and Richmond, CA furthers that trend with another $11,258 (22.4%) above the $50,358 average.
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Top 10 Highest Paying Cities for Retired Military Jobs.
| City | Glendale, CA |
|---|---|
| Annual Salary | $56,260 |
| Monthly Pay | $4,688 |
| Weekly Pay | $1,082 |
| Hourly Wage | $27.05 |
For example, the retirement of an E-8 with 20 years is roughly $22,000 a year for just waking up in the morning. However, if you spread that out for another 40 years of living, retirement pay has reached a $1 million retirement package.
If you retire at 30 years you get 75% of your final base pay. If you entered between September 8th, 1980 and August 1986 you are eligible for the High 36 system. Under this system your retirement pay is the average of your highest 36 months of base pay times 2.5% for every year of active duty.
Can You Live Off Military Retirement Pay? The short answer is, yes, absolutely. But it takes a lot of planning to make this work. A good friend of mine, Doug Nordman, wrote the book, The Military Guide to Financial Independence and Early Retirement, and founded the website, The Military Guide.
Your veterans pension will terminate on day 61 of your incarceration–regardless of whether you are serving time for a misdemeanor or a felony. Upon your release, you may continue to receive your pension if you still meet the eligibility criteria.
Military Retirement Pay/Pension
In order for the military to provide direct retirement payments to an ex-spouse, the couple must have been married 10 years overlapping with 10 years of service. ... The maximum amount of pension income an ex-spouse can receive is 50% of the military retirement pay.
If you are a commissioned officer or an enlisted with prior commissioned service, you must have at least 10 years of commissioned service to retire at your commissioned rank.
As of 2020 Military Retirement Calculator projections an E7 retiring with exactly 20 years of service would receive $27,827 per year. It's important to note the present value of $838,551 for a 40 year old receiving this pension indefinitely.
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