My husband is active duty and eligible to retire in 2018 (he'll be 40yrs old). We're 99% sure we're going to keep going until 2028 (E9 with 30 yrs in) BUT we'll go with the worse case scenario of retiring in 4 years time...
So, assuming he retires in 2018, with 20yrs in and an E-8, using this calculator (highest 3):
http://militarypay.defense.gov/mpcalcs/Calculators/FinalPayHigh3.aspx he'll start receiving around $2400/mo the first year and then it'll go up with inflation. Here's a summary pasted from the website:
Summary Results Table
The following table displays: 1) the before-tax monthly, annual, and cumulative retired pay and 2) the after-tax annual and cumulative retired pay for selected milestones in your retired career.
Before Taxes After Taxes
Years Out Year Monthly Pay Annual Pay Cumulative Annual Pay Cumulative
1 2018 $2,478 $29,741 $29,741 $21,414 $21,414
10 2027 $3,378 $40,534 $348,904 $29,184 $251,211
20 2037 $4,765 $57,177 $841,067 $41,168 $605,568
30 2047 $6,721 $80,654 $1,535,312 $58,071 $1,105,425
40 2057 $9,481 $113,771 $2,514,613 $81,915 $1,810,522
These results were based on your choices and assumptions. The future will differ from these assumptions and actual results will differ correspondingly. Remember these comparisons are not guaranteed; they are merely estimates.
I used to work for the State of Missouri and was 5-6 years vested. I'm not sure how much I'll get but I'll get a little something HR said. I am not working now because we're overseas but in 2018 when we return, I plan on working again. IF my husband decides to quit the military it's only because there's a really good offer. So either way, he'll be working still after 2018.
Hubby only gets taxed and claim social security on a bit over half his income since we don't get taxed on housing, utilities, COLA etc. I think last tax he was taxed on around $45k and before we left the US, I was taxed at around that rate also. I looked up the social security site and I think we'll get around $1700/ea? Our financial advisor, who we just split up from, believes that we'll still be getting SS. But who knows...
So, based on the numbers above, how much do we need to put into our investments? We have around $100-110k in investments and $30-40k in cash. I was messing with Fidelity's retirement tool (retiring at 55yrs of age -- although I'll probably work until I die, I LOVE having a career) and after putting in around $5000 in monthly spending (this is with a mortgage, insurance etc), and $800/mo of savings, we'll have LOTS of leftovers, in the low millions, 1-2 mil I think. If he does retire from the military in 2028, it'll be in the 5 mil after we die at age 100 (don't want to live that long but I put in max age :D)
We're frugal and want to be comfy but we're not aiming to die with millions in our account either. Anybody with a pension know the formula for supplementing the pension?