In this article, we’ll reveal and explain each military retirement pay plan to help you understand what to expect from your 2025 military retiree pay chart and how it’s calculated.
It’s essential to understand the different military retirement plans and how each one affects your pay and benefits.
The military offers various retirement options depending on when you entered service, your length of service, and other factors like disability.
To calculate your military retirement pay the easy way, check out the different military retirement pay calculators available through the Department of Defense (DoD).
Table of Contents
Summary of Key Points
- Military Retirement Plans Vary by Date of Service: The type of retirement plan a military member qualifies for depends on when they entered service. There are four primary retirement plans: Final Pay, High-36, REDUX, and the Blended Retirement System (BRS), each with different benefit calculations based on years of service and date of entry.
- Final Pay and High-36 Provide Defined Benefits: The Final Pay plan offers 2.5% of the member’s final basic pay per year of service, while the High-36 plan calculates retirement pay using the average of the highest 36 months of pay. Both plans reward longevity with retirement income up to 75% for 30 years of service.
- Blended Retirement System (BRS) Combines Defined Benefits and Contributions: The Blended Retirement System (BRS) provides a defined benefit of 2.0% per year of service, plus contributions to a Thrift Savings Plan (TSP), including government matching up to 4%. This system applies to members who joined after January 1, 2018, or opted in earlier.
- Disability Retirement is Based on Service or Disability Percentage: Members medically unfit for service with a DoD disability rating of at least 30% qualify for Disability Retirement, calculated using either their disability percentage or years of service. The multiplier is capped at 75%, ensuring fair compensation for disabled veterans.
How Military Retiree Pay Works: Detailed Comparison Chart
| Military Retirement Plan Name | Type of Military Retirement Plan | Eligibility Criteria |
|---|---|---|
| Final Pay | Defined Benefit that equals 2.5% times the number of years of service times the member’s final basic pay on the day of retirement. | Primary retirement plan for Reserve members with initial date of entry into service prior to September 8, 1980. |
| High-36 | Defined Benefit that equals 2.5% times the number of years of service times the average of the member’s highest 36 months of basic pay. | Primary retirement plan for members with initial date of entry into service on or after September 8, 1980, but before January 1, 2018. |
| REDUX | Career Status Bonus $30,000 lump sum payment at 15th year of service with obligation to serve through 20 years + defined benefit. Defined Benefit is: >> (a) Prior to age 62: 2.5% times the number of years of service minus 1.0% for each year of service less than 30, times the average of the member’s highest 36 months of basic pay. >> (b) At age 62 and after: 2.5% times the number of years of service times the average of the member’s highest 36 months of basic pay. | Optional retirement plan for active duty members with an initial date of entry into service after July 31, 1986, but before January 1, 2018. Eligibility to elect the Career Status Bonus ended as of December 31, 2017. |
| Blended Retirement System (BRS) | Blended defined benefit and defined contribution plan. Defined Contribution: All covered members receive a Government contribution that equals 1% of basic or inactive duty pay to a tax-advantaged retirement account (Thrift Savings Plan (TSP)) after 60 days following the entry into Uniformed Service. Additionally, covered members have the ability to receive up to an additional 4% matching contribution from the Government to TSP beginning after 2nd year of service through 26th year of service. Defined Benefit: Members who qualify for a retirement based on longevity of service receive a defined benefit that is 2.0% times the number of years of service times the member’s highest 36 months of basic pay. | Only retirement plan for members with initial date of entry into service on or after January 1, 2018. Optional for members with an initial date of entry into service on or before December 31, 2017, who: >> (a) while on active duty, had fewer than 12 years of service as of December 31, 2017, and who elected to opt into BRS during the opt-in period; or, >> (b) while in a Reserve Component, had fewer than 4,320 retirement points as of December 31, 2017, and who elected to opt into BRS during the opt-in period. |
| Disability | Retirement plan that equals Retired Pay Base* times Multiplier %** *Retired Pay Base – determined under Final Pay, High-36, or BRS depending on military service date of entry. **Multiplier Percentage can be: >> Member’s percentage of disability determined by the military service. >> Years of creditable service times 2.5% or 2.0% (Based on participation in a legacy retirement program or the Blended Retirement System). >> The multiplier is limited to 75% by law. | Determined medically unfit for continued service with a DoD disability rating of at least 30%. |
1. Final Pay Retirement Plan
The Final Pay retirement plan is a defined benefit plan that equals 2.5% of your final basic pay for each year of service.
This plan applies to service members who entered the military before September 8, 1980.
If you served for 20 years, you would receive 50% of your final basic pay as retirement income.
The longer you serve, the higher the percentage, up to a maximum of 75% for 30 years of service.
2. High-36 Retirement Plan
The High-36 or High-3 retirement plan is similar to the Final Pay plan but calculates retirement pay based on the average of your highest 36 months of basic pay, not your final pay.
This plan applies to members who entered service on or after September 8, 1980, but before January 1, 2018.
Like the Final Pay plan, your retirement pay equals 2.5% per year of service, but instead of your last paycheck, it uses an average of your highest 36 months of pay.
3. REDUX Retirement Plan
The REDUX retirement plan offers a Career Status Bonus of $30,000 for 15 years of service but requires you to stay until 20 years.
REDUX retirement pay is reduced—calculated at 2.5% minus 1% for every year of service under 30 years. Before age 62, retirement pay is lower, but at age 62, REDUX provides a one-time bump to match what you would have received under the High-36 plan.
This plan applied to those entering between August 1, 1986, and January 1, 2018, who elected to take the bonus.
4. Blended Retirement System (BRS)
The Blended Retirement System (BRS) combines a defined benefit and a defined contribution to the Thrift Savings Plan (TSP).
This system applies to members who joined after January 1, 2018, or those who opted in before that deadline.
The BRS formula for the defined benefit is 2.0% per year of service, and members receive a government contribution of 1% to their TSP, with matching up to 4%.
5. Disability Retirement
For service members determined medically unfit for service, the Disability Retirement plan offers retirement pay based on either your percentage of disability or years of service, whichever provides a higher benefit.
The multiplier is capped at 75% by law, and the pay is determined based on the Final Pay, High-36, or BRS formula, depending on when you entered service.
A DoD disability rating of at least 30% is required.
Retired Pay Base Calculation
There are two methods for determining your retired pay base:
- Final Pay Method: Your final basic pay at the time of retirement.
- High-36 Method: The average of your highest 36 months of basic pay.
The method used depends on your Date of Initial Entry into Military Service (DIEMS), which does not change even if you leave and rejoin the military.
The longer you serve, the higher the multiplier for your retired pay.
Retired Pay Multiplier
For each year of service, your retired pay multiplier increases by 2.5% (or 2.0% under BRS).
For example:
- 20 years of service: 50% multiplier (40% under BRS)
- 30 years of service: 75% multiplier (60% under BRS)
The REDUX plan reduces this multiplier by 1% per year under 30 years of service, but at age 62, it is adjusted to the full amount.
Cost-of-Living Adjustment (COLA)
All retirement plans include an annual Cost-of-Living Adjustment (COLA), based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The 2025 COLA estimate is currently 2.5%.
Under the Final Pay, High-36, and BRS plans, COLA matches the CPI-W increase year over year.
However, under the REDUX plan, COLA is reduced by 1%, though members receive a one-time adjustment at age 62 to align with the High-36 plan.
Conclusion & Wrap-Up: Know Your Retirement Plan
Understanding which retirement plan you fall under is crucial for maximizing your benefits.
Whether you’re on Final Pay, High-36, REDUX, or BRS, your military service will be rewarded with a defined benefit plan, plus additional contributions if you are under BRS.
Keep an eye on COLA adjustments to ensure your pay keeps up with inflation, and always plan ahead to make the most of your retirement.
For more detailed information on your specific plan, consult the DoD guidelines or reach out for personal guidance on navigating your military retiree benefits.
Military OneSource also offers valuable information and includes a useful military retirement pay calculator.
About the Author
Brian Reese
Brian Reese is a world-renowned VA disability benefits expert and the #1 bestselling author of VA Claim Secrets and You Deserve It. Motivated by his own frustration with the VA claim process, Brian founded VA Claims Insider to help disabled veterans secure their VA disability compensation faster, regardless of their past struggles with the VA. Since 2013, he has positively impacted the lives of over 10 million military, veterans, and their families.
A former active-duty Air Force officer, Brian has extensive experience leading diverse teams in challenging international environments, including a combat tour in Afghanistan in 2011 supporting Operation ENDURING FREEDOM.
Brian is a Distinguished Graduate of Management from the United States Air Force Academy and earned his MBA from Oklahoma State University’s Spears School of Business, where he was a National Honor Scholar, ranking in the top 1% of his class.
