Military Retirement Anxiety

[DollarBill]

So after 22yrs in the Military I finally decided to push the eject button. As "Nords" said it's time when it stops being fun. I'm trying to feel good about the decision and I know I'll be fine but there is a lot of unknowns in my future.

I've set myself up good so I have time to figure it out but I'm lacking a direction. I wish I had a significant other for their input but I'm single and no kids. No debt, house paid and good amount in savings (enough to cover 4-8 yrs of living expense). I'm not happy where I'm at (Kansas, nice place but I like more outdoor opportunities).

Could any retired vet share some encouragement/knowledge and/or could others share a "What would you do scenario"?   

[DollarBill]

I shouldn't say savings would cover 4-8 yrs of living expense...it's more like barely making it expense. My retirement pay would cover the basics and the savings would cover discretionary. 

[mxer54]

Hmm....I cannot relate to your feelings!  I am at 20, I retire soon as well...I don't feel like you do though.  I'm excited to retire.  I, like you, have no debt, I have savings and we both have a great pension (if you're active duty). Personally I've chosen to not join the rat race of the govt/contractor job thing like 99% of us do, for some reason that boggles my mind...Maybe because everyone else buys energy drinks every day and blows their money? Who knows.  Anyway, I'm going to live off of my savings/pension and other residual income sources.  I'm going to further my education (post 911) for the fun of it.  I feel like I have a very solid plan with a great back up plan (20+ years of experience and a degree, possibly two, I can work if I need...but I won't need to...;)...).

So get excited!....If you dont enjoy living there and you can get at least 1%, rent the house and move!  Or sell it and relocate!  One of my largest concerns in retirement is moving where I will LOVE my life...Where I am currently does NOT meet my requirements!  Congrats!

[AllChoptUp]

Sell the house. Live and do, almost literally, anywhere and anything you want!! 

You have no worries, my friend.  Find a place/people/community/climate you enjoy and start enjoying the fruits of your service.  Congrats!

[MrsPete]

I don't know if I agree with the "leave when it's no longer fun" idea.  I like parts of my job, but some parts of it have never been fun and never will be fun. 

I'm in a job with a pension, and my husband and I have picked out my retirement date.  I can tell you how we reached that simple decision:  I'm aiming for the 30 year mark; that's the magic number.  Once I reach that date, I can start collecting my pension regardless of age (I'll be mid-50s) and will have my basic medical paid for life.  After that point, if I stay longer, my retirement benefits will never increase significantly.  Every month after 30 years will increase my pension by something like $5, my health benefits will never increase -- not worthwhile. 

So my question to you would be, at what point will you have maximized your benefits? 

[Nords]

So after 22yrs in the Military I finally decided to push the eject button. As "Nords" said it's time when it stops being fun. I'm trying to feel good about the decision and I know I'll be fine but there is a lot of unknowns in my future.
I've set myself up good so I have time to figure it out but I'm lacking a direction. I wish I had a significant other for their input but I'm single and no kids. No debt, house paid and good amount in savings (enough to cover 4-8 yrs of living expense). I'm not happy where I'm at (Kansas, nice place but I like more outdoor opportunities).
Could any retired vet share some encouragement/knowledge and/or could others share a "What would you do scenario"?   

Congratulations!  Now you can redesign your life for v2.0! 

If you haven't already done so, get yourself to TAP as soon as you can.  You don't have a lot of transition planning to do, but it's essential to sit through the process as soon as you can in case something piques your interest.

While you're at TAP, make the most of their self-assessment and discovery software & workbooks.  Again you might not learn anything new, but then something may pop up in a new context.

After TAP you could sit through a Ruehlin seminar or a MOAA "Marketing Yourself For a Second Career" talk to see how you feel.  If you're jazzed then maybe you're ready for a bridge career.  If it just makes you feel tired & overwhelmed then maybe you need a few months of liberty before you make any critical decisions.

You could also read Ernie Zelinski's "The Joy of Not Working" or "How To Retire Happy, Wild, and Free".  At a minimum take a look at his Get-A-Life Tree:
http://bestretirementquotes.blogspot.com/2009/10/get-life-tree-great-retirement-planning.html

Kansas, which is about as far away as you can get from any surfing at all?  Yeah, sell the house.  Learn to surf, or maybe find some mountains.

I don't know if I agree with the "leave when it's no longer fun" idea.  I like parts of my job, but some parts of it have never been fun and never will be fun.

It's a highly individual and subjective decision.  Hundreds of satisfied readers so far, and only one guy has ever told me "Damn, military retirement was a bad idea!  I should've stayed on active duty for a few more years!!"  He was a retired Marine and an electrical engineer at a utility company.  He was enticed back into uniform by a general who wanted his special skills at running an electrical grid:  he was tasked to drop all the power in Fallujah so that the Marines could start retaking the city.  Then he just had to stay alive long enough to selectively restart the system.  As soon as that battle wound down, he was retired again-- and loving it. 

I won't drag out a dramatic explanation of the military lifestyle, but I'll point out that only 17% of all servicemembers stay for the minimum 20 years required to vest in the pension.  That 17% figure includes Reserve & National Guard servicemembers (whose pensions generally start at age 60) as well as active duty (whose pensions start as soon as they retire). 

20 years (of either active duty or the Reserve/Guard "good years") earns an inflation-adjusted pension with cheap healthcare.  For active duty servicemembers at 20 years, the pension base is 50% of the highest three years of earnings.  For Reserve/Guard it's a much wider bell curve, but roughly 20%-35% of the high three (and nothing until age 60).  Every year of active duty past 20 earns 2.5% more money.  Every year of Reserve/Guard duty past 20 earns a few bucks extra per month.  Some face mandatory retirement at 20, 22, 24, or 28 years of service but the vast majority are retired by 30 years.  Anyone on active duty past 30 years is a senior leader who's not about the money or the retirement, although they have to retire at age 62.

I think military (and their families) may be all too good at obstinately persisting past the point of diminishing returns.  It's important to give them permission to stand down when they feel ready instead of the default of "clench your jaw and soldier on".

[MrFancypants]

I don't know if I agree with the "leave when it's no longer fun" idea.  I like parts of my job, but some parts of it have never been fun and never will be fun. 

So my question to you would be, at what point will you have maximized your benefits?

This is one of those military culture things, and it's basically the nice way of putting it.  The less polite way of stating it would be "I'm sick of this shit..." followed by a string of expletives.  When you're at the point in your military career that he has reached, there's a strong chance that there are people who depend on you for direction, guidance, and basically...  leadership.

If you're a leader who is overwhelmingly negative in front of your subordinates, that breeds overwhelmingly negative subordinates, which basically means nothing gets done.

As far as maximizing benefits go....  depending on his rank he may basically be there.  20 years is basically considered the "finish line", but for every extra year you spend beyond that you get slight incremental increases.  At 20 you get 50% of the average of your final three years' base pay (which is roughly 2/3s of your actual pay, the other 1/3 is for housing and subsistence and is not factored into your pension), for every year beyond that you get an additional 2.5% on top of that.

So essentially, the difference in an E-7 retiring at 20 years versus 24 years might be worth a few hundred bucks a month for the rest of your life.  No other benefits mature, health insurance stays the same, access to resources like the commissary and BX/PX stays the same.

[goatmom]

You have received lots of good advice here.  My only tidbit of retirement planning is if travel is your thing, use your terminal leave to fly space A while still on "active" status.  We took our whole family on a "vacation of a lifetime."  We were lucky to be stationed at one of the busiest air terminals.  I have friends that retired on friday and started back on Monday in the same job.  Ughh. But their lifestyle needed the double dipping or so they said.  Best of luck!

[AllChoptUp]

You have received lots of good advice here.  My only tidbit of retirement planning is if travel is your thing, use your terminal leave to fly space A while still on "active" status.  We took our whole family on a "vacation of a lifetime."  We were lucky to be stationed at one of the busiest air terminals.  I have friends that retired on friday and started back on Monday in the same job.  Ughh. But their lifestyle needed the double dipping or so they said.  Best of luck!

This is farking brilliant!  Thanks!

[DollarBill]

Hmm....I cannot relate to your feelings!  I am at 20, I retire soon as well...I don't feel like you do though.  I'm excited to retire.  I, like you, have no debt, I have savings and we both have a great pension (if you're active duty). Personally I've chosen to not join the rat race of the govt/contractor job thing like 99% of us do, for some reason that boggles my mind...Maybe because everyone else buys energy drinks every day and blows their money? Who knows.  Anyway, I'm going to live off of my savings/pension and other residual income sources.  I'm going to further my education (post 911) for the fun of it.  I feel like I have a very solid plan with a great back up plan (20+ years of experience and a degree, possibly two, I can work if I need...but I won't need to...;)...).

So get excited!....If you dont enjoy living there and you can get at least 1%, rent the house and move!  Or sell it and relocate!  One of my largest concerns in retirement is moving where I will LOVE my life...Where I am currently does NOT meet my requirements!  Congrats!

Don't get me wrong, I am excited. The only difference is you have a spouse with a pension which will be a better cushion. I would feel better if I had a bit more in investments. I think I will sell the house and invest everything. The first year will be tight until the VA side of things happen. My largest concern is also "moving where I will LOVE my life". I'd like to travel in a RV for a year or so trying out different places until it just feels right.

I hear ya with the "rat race of the govt/contractor job"...I'm not feeling it either but I already know I could score a job on Andrews. It would help me sock away more and might help me feel better about my FIRE.

Congratulations!  Now you can redesign your life for v2.0! 

If you haven't already done so, get yourself to TAP as soon as you can.  You don't have a lot of transition planning to do, but it's essential to sit through the process as soon as you can in case something piques your interest.

While you're at TAP, make the most of their self-assessment and discovery software & workbooks.  Again you might not learn anything new, but then something may pop up in a new context.

After TAP you could sit through a Ruehlin seminar or a MOAA "Marketing Yourself For a Second Career" talk to see how you feel.  If you're jazzed then maybe you're ready for a bridge career.  If it just makes you feel tired & overwhelmed then maybe you need a few months of liberty before you make any critical decisions.

You could also read Ernie Zelinski's "The Joy of Not Working" or "How To Retire Happy, Wild, and Free".  At a minimum take a look at his Get-A-Life Tree:
http://bestretirementquotes.blogspot.com/2009/10/get-life-tree-great-retirement-planning.html

Kansas, which is about as far away as you can get from any surfing at all?  Yeah, sell the house.  Learn to surf, or maybe find some mountains.

Thanks NORDS...I've been to TAPS once when I was close to my 20 yr mark and will go through it again shortly. I'll have everything in order if I decide to seek employment. I'll be out in Nov and plan to spend the Holidays with my Family and go visit some friends. Then reassess my plans in the spring. I might try to sell my house during terminal, along with all other belongings. I want to be light and nimble. I'll head to the library and check out those books. Thanks!

You have received lots of good advice here.  My only tidbit of retirement planning is if travel is your thing, use your terminal leave to fly space A while still on "active" status.  We took our whole family on a "vacation of a lifetime."  We were lucky to be stationed at one of the busiest air terminals.  I have friends that retired on friday and started back on Monday in the same job.  Ughh. But their lifestyle needed the double dipping or so they said.  Best of luck!

That does sound like a good idea. I have a couple of older dogs (love them to death but dang do they hold me back from doing things) and I hate leaving them at the kennels (plus expensive). I did look into continuing my position as a civilian but thank goodness they said it's not possible.   

[2527]

Like you, I retired from active duty in good financial shape.  One difference is I have a wife and kids. 

As I see it, the most basic questions you have to ask yourself are what you want to make your priority:

1.  Do you want a professional career and high income, and you are willing to move where that job offer comes from?
OR
2.  Do you want to live in a certain place (near family, Colorado, Florida, etc)?

Personally I moved near family and to good schools.  After a few years, I found a job with the federal government, and I like it.  Pay and professionalism is high enough to satisfy me, but I have low job stress, predictable hours, weekends off, etc.

I used to daydream of more adventurous things:  sailing the Mediterranean, hiking the Alps, extended backpack traveling, but for now I have two kids in school and I am satisfied.  I did take a hop to Spain and Morocco.   

Good luck.  Tell us what you decide.

[2527]

Mrs. Pete: 

Part of "leave when it isn't fun anymore" is the backstory:

Military service can be pretty demanding, so you can't just autopilot it into the sunset.  Also, usually at this point, you have kids who are sick of moving and a wife who wants to start a career of her own.  And after 20 years, you can't stay forever anyhow.  The services start to push you out formally or informally. 

[sly]

thank you for your service.

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

[DollarBill]

Like you, I retired from active duty in good financial shape.  One difference is I have a wife and kids. 

As I see it, the most basic questions you have to ask yourself are what you want to make your priority:

1.  Do you want a professional career and high income, and you are willing to move where that job offer comes from?
OR
2.  Do you want to live in a certain place (near family, Colorado, Florida, etc)?

Personally I moved near family and to good schools.  After a few years, I found a job with the federal government, and I like it.  Pay and professionalism is high enough to satisfy me, but I have low job stress, predictable hours, weekends off, etc.

I used to daydream of more adventurous things:  sailing the Mediterranean, hiking the Alps, extended backpack traveling, but for now I have two kids in school and I am satisfied.  I did take a hop to Spain and Morocco.   

Good luck.  Tell us what you decide.

I'm narrowing down some of my options that sound like this:
- I'll be out of Military in Nov, terminal starts around Aug
- Sell house and as many belongings as I can (Either this year or wait till the spring)
- Visit Family and Friends over the winter
- Opt #1: In the spring buy a KLR 650 with luggage racks to take an epic cross country adventure tour. Camp, stay at hotels or visit friends along the way. Cheap way to see the world.
- Opt #2: Buy a Toy hauler travel trailer, probably a bigger truck (have an 05 Explorer so I would be pushing the envelope on towing), buy KLR 650 for the hauler. I'll also carry my bikes, fishing gear, scuba diving gear and maybe a canoe or something. My Dad has a place I can park the trailer with electric and water hookups or just store it when I go somewhere else. I can also find a local storage if I decide to leave an area. It would be fun to have some friends join me on the road for a week or two when they need to get away. 
- Opt #3: I've done a lot of traveling during the years with the Military so I don't have much of an urge to make overseas my home. I would like to go back and visit some of those places or try new Islands for a month or two.
- Opt #4: Go back to work. The first year should be some of the options above but if I decide to go back to work I won't mind moving or I'll just get something local (Where ever I end up). I do know I'll need some time to heal before going back to work.

I'm sure it will be a combination of things. Eventually end up in a place I enjoy, buy small house with cheap taxes. Probably somewhere warm so I don't have to worry about pipes freezing when I'm away. I have Mom in Maryland, Dad in Virginia, Sister in Austin, friends in Tucson, Phoenix, Utah, Wichita Falls TX, Wichita KS...So I was thinking I could eventually buy a house somewhere between (Austin, Houston, San Antonio, Corpus Christi) I figured this way I would have options in every direction but half the travel. Other places that tug at me are Tucson, Flag Staff, Colorado, West Virginia, Key West.

thank you for your service.

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

Thanks...I agree that a Military pension/benefits are worth their weight in gold but it's no gold mine...lol. I am enlisted and I wish it was 4K...if it was I would have no worries (After taxes it should be about half that) and retirees do pay for health care (for a low cost). Congress keeps trying to attack all benefits for Military so I don't know what will change in the future.

After a lot of thinking about my Anxiety I think it's because my income will drop 56% going into my transition. Yes, I've planned well but this is a big hit. It's always been nice to see a very positive savings rate and from now on my savings rate will be zero. Good news is that I have options. Opt #1: I can continue to live below my "new means" or Opt #2: go back to work.

[Stash Me!]

I still have a couple of PT tests to go, but have certainly put a lot of thought into v2.0. I have a spouse and two kids and we are leaning to relocating back closer to family when we call it quits. Being all over the world for the past 20 years has left me "envious" of my brothers and the time that they share together and with our parents. I do expect to find some sort of employment for maybe 10 years? I figure that I could invest my pension and work on paying off our new house/ kids college with our civilian income. I am anticipating a lower stress job with regular hours and the ability to call in sick to feel somewhat criminal. Another main reason that I will be seeking employment is that it gives my wife a peace of mind. I have been slowly showing her the math that we will be fine but she doesn't seem to have a lot of faith in it. Maybe over time I can convince her otherwise.

Anyway, congratulations DollarBill! Enjoy the fruits of your labor and take it all in stride.

[Villanelle]

thank you for your service.

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

An E-9 with 20+ years has a base pay of ~$5670.  Military retirement at 22 years is about 55% of that, so he's not getting anything close to "at least 4k a month". 

Congratulations, DB.  My DH is at about 15 years, so he's got a way to go and thus far is still excited about his work, though I see the wear and strain showing, lately.  I hope you find a path that works for you.  Enjoy!

[Nords]

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

The missing factor is that a military pension is calculated from military base pay, which is only about 70% of an active-duty servicemember's total compensation.  The other 30% of military income (housing allowance, food allowance, uniform allowance, special pays, cost of living allowance, bonuses...) is not part of the pension calculation.  The pension is also calculated from the average of the highest three years of base pay, which effectively reduces the result by a few percent.

In addition, most military retirees fund a Survivor Benefits Plan policy that costs 6.5% off the top of the pension.

So when you hear the cliché "Retire after 20 at half of your base pay", it's really more like 30% of your annual income.

Here's the process in all its gory detail:
http://the-military-guide.com/2012/07/05/the-regulation-for-calculating-an-active-duty-pension/

And if you're in the Reserves or National Guard it's even worse.  This has been the blog's most popular post for over two years:
http://the-military-guide.com/2012/02/27/calculating-a-reserve-retirement/

[DollarBill]

I still have a couple of PT tests to go, but have certainly put a lot of thought into v2.0. I have a spouse and two kids and we are leaning to relocating back closer to family when we call it quits. Being all over the world for the past 20 years has left me "envious" of my brothers and the time that they share together and with our parents. I do expect to find some sort of employment for maybe 10 years? I figure that I could invest my pension and work on paying off our new house/ kids college with our civilian income. I am anticipating a lower stress job with regular hours and the ability to call in sick to feel somewhat criminal. Another main reason that I will be seeking employment is that it gives my wife a peace of mind. I have been slowly showing her the math that we will be fine but she doesn't seem to have a lot of faith in it. Maybe over time I can convince her otherwise.

Anyway, congratulations DollarBill! Enjoy the fruits of your labor and take it all in stride.

I hear ya on the couple of PT test to go. I always seem to be 1 yr from being in the next bracket on the PT test. I passed my last one with a 90.5% (I will say I've neglected to push myself on fitness, don't do the same) so I won't have to test again. I wish I could be closer to Family especially since they are getting older. When I go home I have to re-learn them again. I plan on catching up on loss time, luckily they are still around.

Keep plugging away at the house it makes a big difference when you retire.

thank you for your service.

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

An E-9 with 20+ years has a base pay of ~$5670.  Military retirement at 22 years is about 55% of that, so he's not getting anything close to "at least 4k a month". 

Congratulations, DB.  My DH is at about 15 years, so he's got a way to go and thus far is still excited about his work, though I see the wear and strain showing, lately.  I hope you find a path that works for you.  Enjoy!

   

Thanks...5 yrs goes fast just keep up the support and it will pay off in the long run for the both of you. It makes a world of difference when you have s supporting spouse.

Maybe I am missing something here but if you are retiring after 22 years of active duty you should have something resembling a final salary pension. Even as an enlisted that would be at least 4k a month I would think. On top of that you have savings, paid house, no dependent, paid health insurance and other military benefits, you are sitting on an absolute gold mine! Not only can you fund your retirement but you can probably save and accumulate more wealth. Follow the Mustachian principles and enjoy!

The missing factor is that a military pension is calculated from military base pay, which is only about 70% of an active-duty servicemember's total compensation.  The other 30% of military income (housing allowance, food allowance, uniform allowance, special pays, cost of living allowance, bonuses...) is not part of the pension calculation.  The pension is also calculated from the average of the highest three years of base pay, which effectively reduces the result by a few percent.

In addition, most military retirees fund a Survivor Benefits Plan policy that costs 6.5% off the top of the pension.

So when you hear the cliché "Retire after 20 at half of your base pay", it's really more like 30% of your annual income.

Here's the process in all its gory detail:
http://the-military-guide.com/2012/07/05/the-regulation-for-calculating-an-active-duty-pension/

And if you're in the Reserves or National Guard it's even worse.  This has been the blog's most popular post for over two years:
http://the-military-guide.com/2012/02/27/calculating-a-reserve-retirement/

I know nobody goes into/stays in the Military for the money. There is a misrepresentation when it come to Military retirement and I like the way you point out the facts. I think everyone should receive some sort of pension for working (I guess that's what SS is for) and sometimes I feel guilty but if I added up all the sacrifices...I think all the veterans would see things clearly. It makes me chuckle when I look back on my career. I can laugh about it now because it makes a good camp fire story...lol.

[mxer54]

I've thought about the travel idea as well...When I retire it will be during the school year that my kids are with their mother.  My wife and I don't have kids.  So I proposed the "Lets liquidate most of our things, get a small RV and travel for a few months before settling down!!!"...I got a big fat "No" haha....The wife is a little nervous about our plans too but we will be just fine.

[Villanelle]

I've thought about the travel idea as well...When I retire it will be during the school year that my kids are with their mother.  My wife and I don't have kids.  So I proposed the "Lets liquidate most of our things, get a small RV and travel for a few months before settling down!!!"...I got a big fat "No" haha....The wife is a little nervous about our plans too but we will be just fine.

Perhaps renting a Pod (or similar) and storing the stuff for a few months might be a decent compromise.  Usually I think that paying for storage is a stupid waste, but in this case, it might make sense.  It might give her the reassurance she needs to take the new life out for a test drive, literally, without committing.  And if you plan to (or end up) doing the RV thing for a few months only and then settling down, it might be cheaper to pay for storage for a few months rather than having to repurchase an house worth of furniture. 

[DollarBill]

I've thought about the travel idea as well...When I retire it will be during the school year that my kids are with their mother.  My wife and I don't have kids.  So I proposed the "Lets liquidate most of our things, get a small RV and travel for a few months before settling down!!!"...I got a big fat "No" haha....The wife is a little nervous about our plans too but we will be just fine.

Perhaps renting a Pod (or similar) and storing the stuff for a few months might be a decent compromise.  Usually I think that paying for storage is a stupid waste, but in this case, it might make sense.  It might give her the reassurance she needs to take the new life out for a test drive, literally, without committing.  And if you plan to (or end up) doing the RV thing for a few months only and then settling down, it might be cheaper to pay for storage for a few months rather than having to repurchase an house worth of furniture.

Definitely try a few rentals on a few vacations to warm her up to the idea.

[2527]

One thing I would suggest is to not do anything drastic that is irreversible.  A friend of mine always dreamt of retiring at exactly twenty years and moving to the UK.  When he hit 20 years, he sold everything he owned in the US and set himself up in the UK.  I met him about two years later, and he frankly said it was a big mistake.  The reality didn't match the dreams, and he regretted that he sold everything.  His comment was that he should have hedged his bets and put it in storage in the US for a year or two.  He also said he really missed active duty, and his attitude of focusing on everything that was negative and dreaming to hit 20 and bolting was immature. 

[sly]

dang I didn't realize retired service men took such a pay cut. I think you are still fine as long as you either save your cash or use it to get some sort of additional income either through rental/investment income or buying a retirement annuity.

[mxer54]

dang I didn't realize retired service men took such a pay cut. I think you are still fine as long as you either save your cash or use it to get some sort of additional income either through rental/investment income or buying a retirement annuity.

It's not too bad.  The pension equals about the same as if you had about 500k-600k in investments (living off the 4% rule), you get cheap health insurance for you and your family. Plus if you have a disability, sleep apnea for example, you will make a little (or a lot more if over 50%).  About $900 a month on top of retirement if you have 50%, more for a higher rating.

Along with that you get money from the Post 911 Gi Bill.  Pays for school plus you get about 1k a year for books and a monthly housing payment, amount differs from place to place.  For instance, Washington DC is about 2400 a month.  you get 36 months of that. 

So all the perks along with investments, you can do pretty well.  Now, if you spend all your money on lattes, monsters, etc you can do pretty poorly as well!

[sly]

thanks I actually think the military can be a great gig for a Mustachian

[TomTX]

thanks I actually think the military can be a great gig for a Mustachian

Retire at 38 with a pretty decent pension (2.5% per year is up there) - and you have the ability to stash a LOT of your pay during your service time. I seriously considered it - but there are some really obvious drawbacks.

[Nords]

thanks I actually think the military can be a great gig for a Mustachian

This question came up on Jacob's ERE blog a few years ago, so I wrote a couple of posts on it:
http://earlyretirementextreme.com/guest-post-join-the-military-to-retire-early.html
http://the-military-guide.com/2011/08/03/join-the-military-to-retire-early-the-rest-of-the-story/

And of course Mustachianism can be a great gig for any servicemember, because they're constantly pushing the envelope between frugality and deprivation...

[DollarBill]

thanks I actually think the military can be a great gig for a Mustachian

The Military can be great for a Mustachian. In the big picture of things I’m very pleased how things turned out. I joined after high school when I was still 17 (Parents had to sign for me). There wasn’t a collage fund waiting for me and if there was it probably would have been wasted. I liked the structure and discipline; it made me a better person.

Being in the Military you get put into a lot of situations where you have to do without the niceties of life.  It’s been better over the years but I remember on a few deployments it was pretty bad. First deployment I remember traveling 36 hours straight then dropped off and they said build you tent. Had to walk 10 mins to go to the bathroom; cold showers and the toilets faced outward with no closure (made for some interesting moments).  On other deployments I stayed in a warehouse with about 200 people; bunk beds and people trying to sleep at different times. I think it’s funny when I hear stories about Sheriff Joe Arpaio and how bad tent city is for inmates. I would consider that guy a saint!! I also give a "Salute" to the other branches because I know they've had worst.

The Military has all kinds of people. People that will live pay check to pay check and some that will save for their future. If you’re the saver things should be good. Over all I know I should be good going into my transition to retirement (or semi-retirement). It’s just a big change and it will take some time to figure everything out. It’s great to hear all the inputs from you guys; it does help to claim the thoughts. Cheers!   

[sly]

did you contribute to a Thrift Savings Plans?