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Military Retirement Pay — A Benefit Worth Serving For

Military retirement pay is one of the most powerful benefits a Soldier can earn—providing lifelong income, inflation protection, and, with the Blended Retirement System (BRS), a flexible savings plan that works for every career path. Whether serving four years or thirty, Soldiers now walk away with real retirement savings through the Thrift Savings Plan, government matching, and the option for a pension after 20 years. It’s more than a paycheck—it’s financial security, freedom, and a well-earned reward for a lifetime of service.

When you think of the top benefits of military service, military retirement pay is right up there—and for good reason! It’s a powerful reward for years of dedication, and it’s protected from inflation through annual Cost of Living Adjustments (COLAs). This isn’t just a paycheck—it’s a lifelong financial foundation. Let’s break down how it works, why it matters, and how you can maximize it if you’re aiming for a career in the Army.

From the Old System to the New — How Retirement Evolved

In 2018, the military launched a major upgrade to retirement benefits with the Blended Retirement System (BRS). This change moved away from the “all-or-nothing” 20-year pension and opened the door for more service members to walk away with real retirement savings—even if they don’t stay for two full decades. It’s more flexible, more inclusive, and designed to fit the modern Soldier’s career path.

The Blended Retirement System — What You Get

Defined Benefit: Serve 20 years, and you’ll earn 40% of your highest 36 months of base pay for life, with a 2% bump for every year you serve beyond that.
Thrift Savings Plan (TSP): Think of it as your military 401(k) with government matching up to 5%—a huge head start for your future.
Continuation Pay: Around your 12-year mark, you could earn a big one-time bonus for committing to more service.
Portability: If you leave early, you take your TSP (and the matching funds) with you—your savings, your future.
Financial Literacy Training: Mandatory training ensures you know how to make your money work for you.

Why This Matters for Your Future

The BRS isn’t just about retirement—it’s about empowerment. You’re not only earning a pension but also building an investment portfolio that can grow for decades. Whether you serve four years or 30, you’ll have a tangible benefit to show for your time in uniform.

Making the Most of Your Retirement Benefits

Learn the System: Dive into the details of BRS and know how each benefit works.
Set Clear Goals: Decide early—are you aiming for 20 years or leveraging portability?
Use the Tools: Online calculators can help you visualize your future paycheck.
Ask the Experts: Financial counselors and seasoned Soldiers can help guide your strategy.

The Bottom Line

Military retirement pay is one of the most secure and generous benefits in America. The BRS gives today’s Soldiers the flexibility to tailor their path—whether that means a full career or a shorter stint with a solid retirement account. By understanding your options and making smart moves now, you’re not just preparing for retirement—you’re setting yourself up for a financially confident future.

I’ll be back next week with more tips and guidance. Until then, Hooah!

SGM Kris Broadus, U.S. Army (Retired)