🎖Military Retirement Guide

(Eligibility, Process, Pension, and Civilian Transition)

🧭 1. Understanding Military Retirement

Military retirement isn’t just the end of your service — it’s a lifetime benefit that includes a pension, healthcare, and ongoing privileges.
It rewards years of service with a stable income and access to programs designed to help you transition into civilian life.

📜 2. Who is Eligible?

⏳ Active Duty Retirement

• 20+ Years of Active Duty Service → Eligible for full retirement pay.

• Retirement can be immediate after 20 years, no age requirement.

🪖 Reserve/National Guard Retirement

• 20+ Qualifying Years (Good Years) → Retirement benefits begin at age 60 (sometimes earlier for certain active duty deployments).

🛠 3. How to Start the Retirement Process

🗓 Timeline

• 12–24 Months Before Retirement: Start planning, attend transition assistance programs (TAP).

• 6 Months Before Retirement: Submit retirement application to your branch’s personnel office.

• Final 90 Days: Complete medical exams, final paperwork, and attend separation briefings.

🏢 Steps

1. 📑 Notify Your Chain of Command of your retirement intent.

2. 🩺 Schedule Medical & Dental Exams to document your health status for VA claims.

3. 🧾 Complete Your DD Form 2656 (Data for Payment of Retired Personnel).

4. 🎓 Attend TAP (Transition Assistance Program) — mandatory for all retirees.

5. 🪪 Get Your Retirement ID Card for ongoing military privileges.

📦 4. What Retirement Includes

• 💵 Lifetime Monthly Pension — based on years of service and base pay.

• 🏥 TRICARE Health Coverage — for you and eligible dependents.

• 🎖 Commissary & Exchange Access — worldwide.

• 🏦 Survivor Benefit Plan (SBP) — provides income to your spouse/children if you pass away.

• 🪪 Retired Military ID Card — proof of your retiree status and benefits access.

📊 5. How Pension is Calculated

📌 Active Duty

• Final Pay System (Entered service before Sep 8, 1980):
  Pension = 2.5% × Years of Service × Final Base Pay.

• High-3 System (Entered after Sep 8, 1980):
  Pension = 2.5% × Years of Service × Average of Highest 36 Months Base Pay.

• BRS (Blended Retirement System) (Joined after 2018):
  Pension = 2.0% × Years of Service × High-3 Average + Thrift Savings Plan (TSP) contributions.

📌 Reserve/National Guard

• Points-based system → Pension = 2.5% × Equivalent Active Duty Years × High-3 Average.

• Most begin receiving payments at age 60.

🕰 6. How Long It Takes to Receive Pension After Retirement

• ⏱ Active Duty: First payment usually arrives within 30–60 days after your final out-processing.

• ⏱ Reserves/Guard: Begins on your eligibility date (usually age 60).

🎯 7. What to Expect After Retirement

• 📆 Monthly Pension Payments for life, with annual COLA (Cost of Living Adjustment).

• 🏥 Healthcare Costs: TRICARE Prime or Select (low-cost compared to civilian plans).

• 🏛 Veteran Benefits Access: VA disability, home loans, education benefits may still apply.

• 🌍 Lifestyle Changes: More personal control over time, but loss of daily military structure.

🔄 8. Transitioning to Civilian Life Successfully

🧑‍🏫 Leverage TAP Resources

• Resume writing, interview prep, job search strategies.

💼 Find New Purpose

• Consider federal employment (veterans preference applies).

• Explore entrepreneurship or side income streams (like the Active Discount & Referral Guide).

📚 Continue Education

• Use the Post-9/11 GI Bill for school or vocational training.

🧑‍🤝‍🧑 Stay Connected

• Join veteran service organizations (VFW, American Legion, DAV).

🧮 Example Pension Calculation (High-3)

• Years of Service: 22

• High-3 Average Base Pay: $6,000/month

• Formula: 2.5% × 22 × $6,000 = $3,300/month for life (before taxes/adjustments).

🛡 Pro Tips for Retiring Service Members

• ✅ File VA disability claims before you retire to speed processing.

• ✅ Consider the Survivor Benefit Plan carefully — it’s optional but valuable.

• ✅ Use military-to-civilian skills translators when job hunting.

• ✅ Budget for the transition — your income will change.