From Our Blog

Should You Choose the New Military Retirement System?

by guest blogger Kimberly Lankford, author of Kiplinger’s Financial Field Manual: A Personal Finance Guide for Military Families

If you joined the military from 2006 through 2017, you have from January 1 to December 31, 2018, to decide whether to switch to the new “blended retirement system.” If you don’t do anything, you’ll continue to be covered under the old plan. (People who join the military after January 1, 2018, will automatically be enrolled in the new system, and those who entered the military before 2006 remain in the old system.)

The current military retirement system provides a generous pension – starting at 50% of your base pay every year for life if you stay in the service for 20 years, or up to 75% if you remain for 30 years. But if you leave the military before 20 years, you get nothing – and about eight out of 10 service members don’t stay long enough to collect a pension.

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