- Military Retirement Pay – The military offers many retirement plans, so you have to check which ones are suitable for you and how it works. In order to receive full retirement pay, you need to have served at least 20 years. Final Pay, for example, is made for those military members who began their years of active duty or reserve service before Sept. 8, 1980. They are eligible for a retirement pension based on their final basic pay. There is also a Disability Retirement Pay, which applies for those military members who are medically unable to continue serving and have a rating of disability of at least 30% approved by the Department of Defense. Another type of Military Retirement Pay, CBS/REDUX, applies to those who entered the military around Aug.1, 1986, and chose to receive the Career Status Bonus. The monthly payment will be based on the average of the highest 36 months of basic pay, but the numbers become lower if members didn’t complete 30 years of service.
- Average Military Retirement Pay – As mentioned before, the amount you should expect to receive every month is based on the chosen plan and military status. For example, the pension of a typical enlisted person can round up to $30,000 to $35,000 per year, while the pension of a typical officer will round up to $60,000 to $70,000 a year. Of course, these estimates apply to those who have served full-time active duty for their entire career. Those members that will retire from the reserve can expect the retirement pay to be based on grade, tenure, and the total number of points they have for the time they worked.
Medicare doesn’t cover prescription drugs – Although Medicare doesn’t provide any coverage for outpatient prescription drugs, there