Comments on: A Military Retirement is Worth Millions of Dollars

By: Eugene T.

Eugene T. — Tue, 22 Feb 2011 22:27:44 +0000

Another way you might look at it is to establish a capital value of your retirement, i.e., determine what sum of money you would need invested to yield your annual retirement figure.

Using the 1/2 pay MSgt figures above: E-7 Annually: $23,972.40… and figuring a 2% return (well above bank interest, at this time), you would need a principal sum of $1,198,620 to yield the stated annual retirement…

By: Bill

Bill — Fri, 08 Oct 2010 13:31:34 +0000

You need to check your #’s again if you think the reserve will be the same as Active Duty.. not even close

By: Ryan

Ryan — Wed, 23 Jun 2010 12:36:35 +0000

Cliff, it is a great deal for those who are able to complete the 20 year service requirement. I thought long and hard about joining the Reserves after I separated from Active Duty, but it didn’t work out for several reasons. The Reserves is no longer an option I am considering, but I have a lot of respect for those who choose to continue their service.

By: Cliff

Cliff — Wed, 23 Jun 2010 07:56:03 +0000

Ryan,

Continue to serve in the reserves for 20 years and at age 60 your benefits will be almost identical to someone who served on active duty for 20 years! Now that’s really a great deal!

By: Eric Forrest

Eric Forrest — Fri, 07 May 2010 00:36:05 +0000

In numerous articles I keep noticing the following: “Most retirees at 20 years will receive 50% of their base pay, which would equal the following amounts:” Then it continues to show an amount equal to 50% of the base base upon retirement. The it also states the medical benefits.
1. For “most of us”, the real amount is the average of the prior 36 months of basic pay, which is less than 50% of the final basic pay upon retirement. Accuracy is important. Plus, we received no increase for 2010 due to the COLA calculations, even though our real cost of living rose.
2. Second, medical coverage must be paid for (although a great rate), and fewer doctors on installations is forcing more to go downtown and pay the co-pay amount.