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Do you get a pension after 4 years in the military?
No, you do cannot get a pension after 4 years in the military, but you’ll get retirement benefits after 4 years
- Thrift Savings Plan (TSP): You’ve likely been contributing to the TSP throughout your service, which is similar to a 401(k) plan. Upon separation, you can access these funds and utilize them for retirement or other purposes. The government also contributes matching funds to your TSP, adding to your savings.
- GI Bill: You’re eligible for the GI Bill after serving at least 4 years with an honorable discharge. This benefit offers assistance with education, housing, and starting a business. You can use it for college tuition, vocational training, or a down payment on a house.
- Veterans’ disability: If you become disabled during your service, you may be eligible for disability benefits from the Department of Veterans Affairs (VA).
While you won’t receive a traditional pension, these benefits can still provide valuable support for your future.
To qualify for a pension after serving in the military, you generally need to serve for at least 20 years. There are two pension plans for active duty service members: the Legacy or High 36 Retirement System and the Blended Retirement System. Both plans require 20 or more years of service. The amount of the pension is based on the average of the highest 36 months of basic pay, and it can be received at any age after completing 20 years of service.
For Army Reserve and Army National Guard Soldiers, the pension can be claimed after turning 60 years old.
The military offers a few retirement plans, including the Final Pay and High-36 plans. The Final Pay plan is for military members who began their years of active duty or reserve service before September 8, 1980, and the High-36 plan is for those who began service after that date. Both plans require at least 20 years of service to receive full retirement pay.
What is the difference between final pay and high-3 retirement plans?
Final Pay Plan:
- Retired Pay Base: Equal to the final basic pay.
- Multiplier: 2.5% times the years of creditable service.
- Eligibility: For military members who began their years of active duty or reserve service before September 8, 1980.
High-3 Plan:
- Retired Pay Base: The average of the highest 36 months of basic pay divided by 36.
- Multiplier: 2.5% times the years of creditable service.
- Eligibility: For military members who began their years of active duty or reserve service after September 8, 1980.
In both plans, each year of service is worth 2.5% toward the retirement multiplier, and the retired pay can be received after completing 20 years of service. The High-3 plan uses a 36-month average of basic pay, while the Final Pay plan uses the final basic pay to calculate the retired pay base. The Final Pay plan is more beneficial for those who entered service before September 8, 1980, while the High-3 plan is for those who entered service after that date.