20 years to retirement

[Messerschmitt]

Is it still accurate that in US military you can still retire after 20 years and draw your pension? Must be nice...

 

[SeaKingTacco]

You have to be careful about comparing the US and Canadian military retirement and pension systems.

Yes, you can retire from the US military after 20 years and draw a half pension. They also have very much an “up or out“ promotion policy. There is no such thing as a career Cpl or Captain in US Service. You don’t make the grade for the next rank- you get told to retire.

 

[mariomike]

I'm not a pension expert. But, from what I read, they have an accrual rate of 2.5%.

 

[tomahawk6]

Here is a current Basic pay chart. In our system in addition to basic pay there is also BAH basic housing allowance. If you retire the BAH stops. The BAH rate also depends on where you are assigned. Its higher in DC than most places as it it is tied to cost of living if you are assigned government housing BAH stops. There is also additional allowances such as Food,hazard pay ect.

2021 Military Pay Charts (Proposed)

Here are the proposed 2021 military pay charts based on the DOD Fiscal Year 2021 Budget Proposal.

militarybenefits.info

BAS rates 2021

2021 Basic Allowance for Subsistence Rates (BAS)

The Basic Allowance for Subsistence pay allowance is for Enlisted Soldiers and Officers to offset the cost of grocery and food-related expenses.

militarybenefits.info

 

[tomahawk6]

Hazard Pay Chart

Everything You Need to Know About Hazardous Duty Incentive Pay

Learn about hazardous duty incentive pay, the special stipend allotted to military personnel performing hazardous duties.

www.thebalancecareers.com

 

[dapaterson]

Interesting article on US military pensions, how they vest, and that officers are significantly more likely to receive one.

Only one in five people take up this incredibly generous pension to retire at 40

It pays out 50% of final salary after 20 years of service. Guaranteed. For life.

qz.com

 

[tomahawk6]

Correct. The longer you stay the higher the pension. One other fact is that allowances are not taxable like base pay is. Canadian pay is very generous by comparison.