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The Three Military Retirement Systems
Final Pay
For members who entered before September 8, 1980. Retirement pay equals 2.5% × years of service × final month's basic pay. A 20-year retiree receives 50% of final pay.
High-36
For members who entered between September 8, 1980 and December 31, 2017 (and did not opt into BRS). Uses 2.5% × years × average of the highest 36 months of basic pay. A 20-year retiree gets 50% of their average.
Blended Retirement System (BRS)
For members who entered on or after January 1, 2018, or who opted in. Uses 2.0% × years × average of highest 36 months. The lower multiplier is offset by government TSP matching (up to 5% of basic pay) and continuation pay.
Retirement System Quick Comparison
| Feature | Final Pay | High-36 | BRS |
|---|---|---|---|
| Multiplier per year | 2.5% | 2.5% | 2.0% |
| Base for calculation | Final month pay | Avg high-36 months | Avg high-36 months |
| TSP matching | None | None | Up to 5% |
| 20-year payout | 50% final pay | 50% avg pay | 40% avg pay |
| Continuation pay bonus | No | No | Yes (12 yrs) |
Frequently Asked Questions
Is military retirement pay taxable?
Federal income tax applies to military retirement pay. However, many states fully or partially exempt military retirement from state income tax. Some states like Texas, Florida, and Nevada have no income tax at all. Disability retirement pay may be partially or fully tax-free depending on the percentage.
When does military retirement pay start?
Retirement pay begins the first day of the month after your retirement date. There is typically no gap — DFAS (Defense Finance and Accounting Service) begins payments automatically once your retirement is processed. You can manage your pay and tax withholding at myPay.
Does military retirement affect VA disability compensation?
Traditionally, VA compensation was offset dollar-for-dollar from retirement pay. However, Concurrent Retirement and Disability Pay (CRDP) allows veterans rated 50%+ to receive both in full. Combat-related disabilities may qualify for CRSC instead. Learn about concurrent receipt →
What is the Survivor Benefit Plan (SBP)?
The Survivor Benefit Plan is an annuity program that continues a portion of your retirement pay to your surviving spouse or dependents after your death. The standard SBP costs 6.5% of your covered base amount and pays 55% of that amount to survivors. SBP and VA Dependency and Indemnity Compensation (DIC) can now be received concurrently.
Can I retire with less than 20 years?
Generally, regular military retirement requires at least 20 years of active service. However, medical/disability retirement (Chapter 61) is available regardless of years served if you are medically unfit for duty. Reserve/Guard retirement works differently, using a points system, and typically begins at age 60.
Which retirement system am I under: BRS, High-3, Final Pay, or REDUX?
Your entry date into service decides which system applies. Anyone who joined before September 8, 1980 falls under Final Pay retirement. Anyone who joined between that date and December 31, 2017 falls under High-36 retirement, unless they opted into the Career Status Bonus/REDUX trade at their 15-year mark. Anyone who joined on or after January 1, 2018, or who opted in during 2018, falls under the Blended Retirement System (BRS). The calculator above uses the system you select to apply the correct multiplier and base-pay method automatically.
How is military retirement pay actually calculated?
Retired base pay is multiplied by a service multiplier, then multiplied again by years of service, to produce the monthly payment. Final Pay and High-36 use a 2.5% multiplier per year of service, while BRS uses 2.0% per year alongside its own TSP matching. The base pay figure itself differs by system: Final Pay uses your last month of base pay, High-36 and BRS use the average of your highest 36 months. The calculator above runs this formula for you once you enter your grade, years of service, and system.
How much more does retiring at 30 years pay compared to 20 years?
Ten extra years of service raises the payout in two ways at once, not just one. The service multiplier applies to ten more years, and the retiree typically separates at a higher grade, so the High-36 or final base-pay figure it multiplies against is also higher. Because both factors move together, the increase from 20 to 30 years is larger than doubling the years alone would suggest. Enter both scenarios into the calculator above with your projected grade at each point to compare the actual numbers for your career.
Is the number this calculator shows my actual take-home pay?
No. The estimate above is gross monthly retired pay before any deductions. Federal income tax applies to that gross amount, and possibly state tax depending on where you live: see the military retirement taxes guide for the state-by-state breakdown. Take-home pay is also reduced by an SBP premium if you elect survivor coverage, and increased or restored by CRDP or CRSC if you separately draw VA disability: see the CRSC and CRDP guide for how that offset works.