Reader Question: Can I Get Partial Retirement Pay?

Can you receive a partial military pension?

The military retirement benefits is one of the best retirement plans around – with a pension starting after serving 20 years, and extremely low cast medical benefits for life. These benefits are well deserved and the least we can do to thank our veterans for their years of dedication and service. Though a military retirement may or may not pay enough to live on without taking another job, it is easy to value a military pension at over one million dollars over the average duration of a retirement.

In addition to the honor of serving our country, these generous military retirement benefits entice many military members to forgo possible higher pay in the civilian world and remain in military service long enough to earn a military retirement.

But what happens if you don’t stick around long enough to earn the standard retirement? can you earn a partial military retirement?

Can I Get Partial Military Retirement Pay?

I received a reader question this week:

Hi Ryan,

Let’s say an Individual put in 15 years active duty, then separated from the Army at his own request with a less than Honorable Discharge.  What would his entitlements be for the time he served in on Active Duty? Is he entitled to Partial Retirement Pay?  Or does he have to put in the 20 years to receive retirement pay?

Thanks,

A.T.
Veteran, US Army

Hello A.T. – Thanks for your service to our country.

In most cases one needs to serve 20 years to qualify for military retirement pay and benefits, except in some cases such as disability. If you are looking to get paid, here are your options:

Join the Guard or Reserves. Your 15 years will count toward retirement through the Guard or Reserves. You would then need to complete 5 more years of service before you would be eligible for retirement pay. Keep in mind that you will not be eligible to receive retirement pay until age 60. Here is more information about the Army Reserves.

File a disability claim. Assuming you have a qualifying disability and it gets approved, you may receive a monthly disability compensation check and possibly health care benefits as a result of your disability. Keep in mind you need to file your claim shortly after leaving military service and you will need your medical records. I highly recommend visiting your local VA representative for assistance with completing the paperwork for your claim. Here are the current disability rates. The rates receive an annual increase for cost of living.

You should still be eligible for other veteran benefits such as the VA Loan, GI Bill, or other veteran benefits (check with your state or the VA for more information.

Good luck.

Search GI Bill Schools: You can use this GI Bill School search tool to help find available programs where you can use your GI Bill.

Should You Pay a Debt Consolidation Company?

I recently received a reader question regarding debt consolidation services:

Hi Ryan,

Do you have any recommendations or advice for someone looking to consolidate their debt? I’ve got too much debt right now and I’m struggling to meet my monthly payments.

Thanks,

Shawn

Hello Shawn,

Thank you for your question. Several months ago I answered a similar question on Cash Money Lifewhich debt to get rid of first? I pointed her to Dave Ramsey’s Baby Steps. Both of these articles cover the same topics, but the second one is the introduction to a series written by several bloggers.

Dave Ramsey’s Baby Steps calls for you to:

  • assess your situation
  • make the commitment to get out of debt
  • get current on all debts
  • focus on repaying what you have using the snowball method

As for consolidating your debt, that may or may not be necessary. Most debt consolidators just charge you to do something you can do on your own. I recommend investigating these steps first to see if you can make a plan that will get you out of debt without going to someone else. Here is how to do your own debt consolidation plan.

If you determine you still need a debt consolidation, then there are many options. But be sure to read the small print concerning how much you will be paying – not only per month, but in total interest. Sometimes the debt consolidation loans will lower your payments to an easy payment, but stretch your payments out several years. Also make sure you understand which fees you are paying them. Here are more reasons you should not pay for debt consolidation.

Personal loans may be another option to paying a debt consolidator. You can always try talking to your creditors to try and lower your payments or the interest rates you pay, or you can look into taking a personal loan through your bank, or from a peer to peer lending company such as Prosper, Lending Club, or Loanio. These companies allow borrowers to borrow money from other individuals at rates that are generally lower than the rates they can get from a bank. Again, read the terms and conditions, and do what is best for your situation.

Without details, it is tough to give anyone real advice, but the principles outlined in the articles I linked to may be helpful. Just remember, the most important thing for you to do is change your current lifestyle to get away from adding more debt – and focus on repaying the debt you have now.

Good luck, Shawn.

Happy Veteran’s Day

I would like to extend a sincere “thank you” to everyone who has served in the armed forces. Without the service and dedication of those like you, our nation would be a much different place, if it even existed at all.

Hopefully most of you get today off so you can enjoy this well earned rest with your families’ and loved ones. There are many others out there who are thankful, and many of them are offering military veteransfree meals and discounts for Veteran’s Day. Hopefully you are able to take advantage of that.

Again, thank you for your service, and doing what you do.

McCormick and Schmick’s Veterans Appreciation Day

Last year, my wife and I enjoyed a free Veteran’s Day meal at McCormick and Schmick’s, a nice seafood restaurant near our home. McCormick and Schmick’s is just one of many companies offering free meals and discounts for Veteran’s Day, and it was awesome to be able to visit their restaurant and enjoy a meal. McCormick and Schmick’s sponsors and annual Veterans Appreciation Event, and I recommend going if you have the opportunity.

McCormick and Schmick’s Veterans Appreciation Day details. This has been an ongoing tradition and McCormick and Schmick’s for the last few years. Veterans are offered a choice of a meal from a special menu. The offer is usually available at all locations, and the event happens on the Sunday of Veterans Day. Please call ahead to verify participation.

Proof of service is required, and it is always a good idea to make reservations in advance. Proof of service can include a military ID card, ID card with veterans designation, DD 214, or membership card from a military service organization.

This was our experience at McCormick and Schmick’s:

McCormick and Schmick's Veterans Appreciation DayMcCormick and Schmick’s offers a special Veterans Day menu for their Veterans Appreciation Event. When I visited the McCormick and Schmick’s website to verify the offer for a free meal, I noticed the fine print mentioned a special menu offering one of five free meals for military veterans. I thought they might be doing this to keep people from ordering the most expensive meals on the menu. But after arriving and looking at the menu, I realized they must have limited the menu to make it easier on the cooks, waitstaff, and the person who orders the food for the restaurant. By limiting the number of dishes, they could better prepare their food order. The meal selection was wonderful.

At our local McCormick and Schmick’s there were actually about 10 different meals to choose from, including top sirloin, salmon, trout, mahi-mahi, catfish, talapia, and a couple other dishes. My wife had a plank roasted salmon and I opted for the top sirloin. Both meals came with potatoes and vegetables. The combined prices for these meals was $40, so this is no small expense on the part of McCormick and Schmick’s. I also had two beers and my wife and I split and upside down apple cobbler with cinnamon ice cream. It was delicious! The meals were large enough that we even took home leftovers.

The total price of the meal with tax and tip came out to $31.00 – $10 for the two beers, $8 for the desert, $2 for tax, and $11 for the tip. When I leave a tip, I always leave the tip based on the price of the full meal, not the price of the discounted meal. The waiter does the same amount of work either way and you are tipping the waiter, not the restaurant. (To quickly calculate a tip, I divide the total bill by 6, which comes out to roughly 15%).

My wife and I both had a wonderful and inexpensive date night, and we have McCormick and Schmick’s to thank for that. I’d like to give a sincere thank you to McCormick and Schmick’s for supporting military veterans!

Be sure to check out these other military deals and discounts.