Service members who have served for at least 20 years are eligible for a military retirement pension.
Pensions are becoming more and more rare in the American workplace, but you can take advantage of a great opportunity in this regard if you are in the armed forces. Service members who have served for at least 20 years are eligible for a military retirement pension. The longer that you serve before you announce your retirement, the larger your retirement benefit will be. If you retire after 40 years of service, you would receive 100 percent of your base pay for the rest of your life. This is a retirement benefit that is pretty hard to match.
There is another retirement strategy that can be utilized in light of the military pension that veterans can receive after 20 years of service. To provide an example, let’s say that you join the Army right after high school when you are 18 years of age. You sign up to become an Information Technology Specialist. After basic training, you attend a school to learn what you need to know, and you move on to a duty station.
You work in this capacity for 20 years, and you advance along the way due to your fine performance. At this point, you are an authentic expert in your field, and you have a fantastic resume for someone that is just 38 years of age. While it would be possible to remain in the military, you could decide to retire and accept a higher paying job in the private sector.
As you utilize your salary to maintain your standard of living, your monthly pension benefits can accumulate in the bank, or in an investment account. You also paid into a 401(k) that was offered by your employer throughout your civilian career. Between the two, your savings are considerable.
When you reach the age of 67, you will qualify your full Social Security benefit. You would receive a monthly Social Security direct deposit along with your military pension for the rest of your life. Financially speaking, you would be perfectly positioned to enjoy a fantastic retirement.