• Home
  • Military Discounts
    • Military & Veteran Discount List
    • Local Military and Veterans Discounts
    • Apple Military Discount
    • Veteran & Military Cell Phone Discounts
    • Gym and Health Club Discounts
  • Benefits
    • 10 Veterans Benefits You May Not Know About
    • Top Military Spouse Benefits
    • Medal of Honor: Benefits, History and Facts
    • Purple Heart Benefits
    • Veterans Health A to Z
  • Housing & Home Ownership
    • VA Loan Calculator
    • VA Loan Limits by County
    • VA Home Loan Guide
    • 5 Benefits of a VA Loan
    • 2022 BAH Rates
    • BAH Calculator
  • Money & Finance
    • 2022 Military Pay Charts
    • 2022 Defense Budget
    • 2022 Military Pay
    • COLA Watch 2022-2023
    • Military Pay Calculator
    • Military Pay Dates
    • VA Disability Rates
  • Jobs
    • Veteran Friendly Employers
    • Military Spouse Employment Preference
    • Veterans Employment and Training Service (VETS)
    • Security Clearance Jobs After the Military
  • Education
    • Veteran Friendly Colleges
    • Online Colleges with Military Discounts
    • Veteran Friendly Colleges Guide
    • Military Spouse Career Advancement Accounts (MyCAA)
    • Monthly Housing Allowance (MHA) for the GI Bill
    • Forever GI Bill
  • Resources
    • How to Get a Veterans ID Card
    • Veterans ID on Driver’s License or ID Card by State
    • Military ID Cards
    • Military Calendar
    • State Veteran’s Benefits
Home » Which Retirement System Should I Choose?

Which Retirement System Should I Choose?

by MilitaryBenefits

When the Department of Defense (DoD) announced the Blended Retirement System (BRS), there were assurances that no member of the U.S. military would be automatically transferred to BRS from the legacy “High-3” retirement plan.

Service members are required to opt-in from High-3 to BRS if they qualify to do so, and were given the entire year of 2018 to choose. But which retirement plan is the best?

Like any retirement option, the answer depends greatly on a person’s financial needs and goals. The DoD has stated that there is no “official” preference for which retirement plan eligible one may choose, and with that philosophy in mind those affected are required to get mandatory training on options related to the Blended Retirement System including the procedures for opting in and what it takes to make a fully informed decision between High-3 and BRS.

There is an official benefits comparison calculator offered by the DoD that can help users see the options for both retirement plans side-by-side. The BRS calculator is intended for both active duty and reserve components.

To use this calculator, you will need to know your Pay Entry Base Date, which is described on the BRS calculator site as, “The date that denotes how much of an individual’s service is creditable towards longevity for pay purposes. This date can be adjusted based on breaks in service.” Your Pay Entry Base Date can be found on your Leave and Earnings Statement.


The BRS comparison calculator will also require you to estimate your life expectancy, your Thrift Savings Plan withdrawal age and contribution percentage as well as the TSP rate of return. There is also a question about your lump sum payment options.

Using all this information combined with estimated career progression data for time in grade and time in service, you’ll be given a comparison that breaks down total retirement benefit dollar amounts (based on the data you provide about life expectancy, contributions, etc.) as well as the “present value” of these plans.

This calculator can be quite helpful, but it is also important to keep in mind that the calculations are made using the current pay chart available at the time the calculations are made and that a baseline set of assumptions (including the pay chart) including COLA increases will affect the numbers you get at the end of the calculation process.


About The AuthorJoe Wallace is a 13-year veteran of the United States Air Force and a former reporter for Air Force Television News


Related Articles
Blended Retirement System Blended Retirement System FAQ
Blended Retirement System: Guard, Reserves Which Retirement System Should I Choose?
Military Retirement Calculators Thrift Savings Plan

Filed Under: Money

Comments

Military + Veteran Discounts

Want 30+ Mil/Vet discounts to use today? Enter your email for updates and we'll send it!
Name(Required)

Popular Articles

2022 VA Disability Rates

2022 Military Pay

Military Pay Calculator

VA Loan Calculator

2022 BAH Rates

Search Veteran.com

Military Benefits Logo

Company

  • About
  • Contact Us
  • Add a Discount
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Unsubscribe

Quick Links

  • Home
  • Military Discounts
  • Benefits
  • Housing & Ownership
  • Money & Finance
  • Employment
  • Education
  • Resources

Connect With Us

  • facebook
  • instagram
  • pinterest
  • twitter
  • youtube
Copyright © 2022 Three Creeks Media, LLC

Veteran.com is a property of Three Creeks Media. Neither Veteran.com nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on Veteran.com is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on Veteran.com should not be attributed to the Dept. of Veterans Affairs , the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on Veteran.com is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertising Notice: Veteran.com and Three Creeks Media, its parent and affiliate companies, may receive compensation through advertising placements on Veteran.com; For any rankings or lists on this site, Veteran.com may receive compensation from the companies being ranked and this compensation may affect how, where and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner” the indicated company is a corporate affiliate of Veteran.com. No tables, rankings or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on Veteran.com may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of Veteran.com.