Military Retirement Calculator: Estimate Your Pension in 2026

Quick Answer: How Much Will Your Military Retirement Pay Be?

Your military retirement pay depends on three things: your retirement plan (BRS or High-3), your years of service, and your highest 36 months of base pay. Under the High-3 legacy plan, you receive 2.5% of your high-36 average base pay multiplied by years of service. Under the Blended Retirement System (BRS), the multiplier drops to 2.0% per year — but you get TSP matching and a continuation bonus. Use our military pay calculator to run the numbers for your specific rank and years of service, then apply the retirement formula below.

How Military Retirement Pay Works in 2026

Military retirement is not a single number — it is a formula-driven pension that rewards longevity. The Department of Defense operates two parallel retirement systems, and which one you are in determines your monthly check for life.

High-3 (Legacy) Retirement System

If you entered service before January 1, 2018 and did not opt into BRS, you are under High-3. The formula is straightforward:

Monthly Pension = (High-36 Average Base Pay) x (2.5% x Years of Service)

For example, an E-7 retiring at 20 years with a high-36 average of $5,200/month receives: $5,200 x 50% = $2,600/month for life. An O-5 retiring at 24 years with a high-36 average of $9,800/month receives: $9,800 x 60% = $5,880/month.

The High-3 multiplier caps at 75% (30 years of service). After 30 years, additional service does not increase the percentage — though your high-36 average may still rise with promotions and annual pay increases.

Blended Retirement System (BRS)

BRS applies to everyone who joined on or after January 1, 2018, plus legacy members who opted in during the 2018 window. The pension formula uses a 2.0% multiplier instead of 2.5%:

Monthly Pension = (High-36 Average Base Pay) x (2.0% x Years of Service)

That same E-7 at 20 years under BRS receives: $5,200 x 40% = $2,080/month — $520 less per month than High-3. But BRS includes three compensation elements that High-3 does not:

• TSP Matching: The government matches up to 5% of your base pay into the Thrift Savings Plan. Over a 20-year career, this can accumulate $100,000-$300,000+ depending on contributions and market returns.
• Continuation Pay: A one-time bonus at 12 years of service, typically 2.5x to 13x monthly base pay depending on your branch and critical skill.
• Lump Sum Option: At retirement, you can elect to receive a discounted lump sum of either 25% or 50% of your pension payments until age 67, in exchange for reduced monthly checks.

For most service members, BRS is the better deal if you contribute enough to TSP to capture the full 5% match and stay invested for the long term. Use our military pay calculator to see your current base pay and project your high-36 average.

Military Retirement Pay by Rank: 2026 Estimates

Below are estimated monthly retirement pensions at 20 years of service under the High-3 formula, using 2026 base pay tables. These are gross amounts before taxes and SBP deductions.

These are 20-year estimates. Every additional year beyond 20 adds 2.5% (High-3) or 2.0% (BRS) to the multiplier. An O-5 who stays to 24 years receives 60% under High-3 — roughly $5,880/month. At 30 years, the 75% cap kicks in: that same O-5 would receive approximately $7,350/month.

For rank-specific breakdowns, see our guides on O-5 officer compensation, O-6 salary, and E-5 pay at 8 years.

Reserve and National Guard Retirement

Reserve retirement works differently from active duty. Instead of receiving a pension immediately upon retiring, reservists must wait until age 60 (reduced in some cases by qualifying active duty time under the NDAA). The formula uses retirement points rather than years of service:

Monthly Reserve Pension = (Points / 360) x (2.5% or 2.0%) x High-36 Average

A typical drilling reservist earns roughly 75 points per year (48 drill periods + 15 membership points + 12 active duty days). At 20 qualifying years, that is approximately 1,500 points. Under High-3: (1,500 / 360) x 50% = 2.08 x the high-36 average. For an E-7 with a $5,200 high-36, that is roughly $1,083/month — significantly less than the active duty $2,600/month because the points-based formula prorates the pension.

Reservists who deploy or serve on active orders accumulate points faster. Every day of active duty earns one point. A reservist with 5 years of active duty time plus 15 years of drilling could have 2,500+ points, substantially increasing the pension. Use our military pay calculator to estimate your base pay, then apply the points formula.

Medical Retirement (Chapter 61)

Service members medically retired under Chapter 61 receive either their calculated longevity pension or a disability-based pension — whichever is higher. The disability percentage is assigned by the Physical Evaluation Board (PEB) and capped at 75% for retirement purposes.

There are two paths:

• Temporary Disability Retirement List (TDRL): You receive a minimum of 50% of your base pay while on TDRL, with periodic re-evaluations. After 5 years maximum, you are either returned to duty, permanently retired, or separated with severance.
• Permanent Disability Retirement (PDRL): Your disability is stable and rated at 30% or higher. You receive the higher of your disability percentage (capped at 75%) or your longevity calculation (2.5% x years of service).

For example, an E-5 with 6 years of service and a 60% disability rating: Longevity = 2.5% x 6 = 15% of high-36. Disability = 60% of high-36. The disability pension wins at 60%, so they receive 60% of their high-36 base pay. If the same member had 30 years of service, longevity would be 75% — higher than the 60% disability rating — so they would receive the 75% longevity pension instead.

Medical retirement pay may also be offset by VA disability compensation. Under Concurrent Retirement and Disability Pay (CRDP), retirees with 20+ years and a 50%+ VA rating can receive both military retirement and VA disability without offset. Those with less than 20 years or below 50% VA rating face a dollar-for-dollar offset.

Survivor Benefit Plan (SBP): What It Costs and What It Pays

The Survivor Benefit Plan is an annuity that pays your surviving spouse 55% of your elected coverage amount. It is not automatic — you must enroll at retirement and pay premiums. The default is full coverage (your full pension amount), but you can elect a reduced base amount or decline entirely with spousal concurrence.

SBP premiums are 6.5% of your elected base amount, deducted from your monthly pension pre-tax. For a retiree receiving $3,000/month with full SBP coverage:

• Monthly premium: $3,000 x 6.5% = $195
• Net pension after SBP: $2,805
• Survivor benefit: $3,000 x 55% = $1,650/month for life

After 30 years of premium payments (360 months) and reaching age 70, SBP premiums stop — the coverage becomes paid-up. The total cost over 30 years for this example: $195 x 360 = $70,200. The survivor benefit of $1,650/month would recoup that in about 3.5 years.

SBP is widely considered a good value compared to private life insurance for military retirees, especially those with health conditions that make commercial policies expensive. For more on how base pay and allowances factor into your total compensation, see our guide to military base pay and allowances.

Taxes on Military Retirement Pay

Military retirement pay is taxable as ordinary federal income. Most states also tax it — but not all. As of 2026, the following states fully exempt military retirement pay from state income tax:

• Alabama, Alaska, Arizona, Arkansas, Connecticut, Florida, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Washington, West Virginia, Wisconsin, Wyoming

Several other states offer partial exemptions (e.g., first $10,000-$35,000 exempt). California and Virginia fully tax military retirement pay with no special exemption. If you are planning where to settle after service, state tax treatment can mean thousands of dollars per year in savings. See our state tax guides for detailed breakdowns by state.

VA disability compensation, on the other hand, is completely tax-free at both the federal and state level. This is one reason why maximizing your VA rating at separation is so important — every dollar shifted from taxable retirement pay to tax-free disability compensation is a dollar you keep.

How to Use the Military Retirement Calculator

Our military pay calculator gives you your current base pay by rank and years of service using the official 2026 DFAS pay tables. To estimate your retirement pension:

1. Select your rank and years of service in the calculator to see your current monthly base pay.
2. Estimate your high-36 average: If you are close to retirement, use your actual last 36 months of LES data. If you are mid-career, project forward using the 2026 pay table and assume 2-3% annual pay increases plus any expected promotions.
3. Apply the multiplier: 2.5% per year for High-3, 2.0% per year for BRS.
4. Subtract SBP premiums (6.5% of elected coverage) if you plan to enroll.
5. Factor in state taxes based on your intended retirement state.

For a more detailed projection, you can also use the DoD's official Retirement Calculator on the Office of the Secretary of Defense website, which factors in TSP projections, COLA adjustments, and SBP scenarios.

Cost of Living Adjustments (COLA)

Military retirement pay receives an annual Cost of Living Adjustment tied to the Consumer Price Index (CPI-W). For 2026, the COLA increase was 2.5%, matching the Social Security COLA. This means a retiree receiving $3,000/month in 2025 now receives $3,075/month in 2026.

COLA compounds over time. A retiree who left service in 2006 at $2,000/month would, after 20 years of average 2% COLAs, be receiving approximately $2,970/month — a 48.5% increase. This inflation protection is one of the most valuable features of the military pension and is not guaranteed in most private-sector retirement plans.

Disabled retirees receiving VA compensation also receive annual COLA increases at the same rate. For the latest VA disability rates, see our 2026 VA disability pay rates guide.

Frequently Asked Questions

Can I receive both military retirement pay and VA disability?

Yes, under Concurrent Retirement and Disability Pay (CRDP) if you have 20+ years of service and a VA disability rating of 50% or higher. If you have less than 20 years or a rating below 50%, your retirement pay is reduced dollar-for-dollar by your VA disability compensation (though the VA portion is tax-free, so you still come out ahead).

What happens to my retirement if I separate before 20 years?

If you separate before 20 years, you do not receive a monthly pension under either High-3 or BRS. However, under BRS, you keep your TSP account with all government contributions and matching — that money is yours regardless of how long you serve. Under High-3, you only keep your own TSP contributions (no government match existed).

Is the lump sum option under BRS worth it?

The BRS lump sum lets you take 25% or 50% of your pension payments from retirement until age 67 as a discounted lump sum. The discount rate is roughly 6-7%, meaning you receive less in present value than the stream of payments is worth. For most retirees, the monthly pension is the better deal — the lump sum is primarily useful if you have a specific need for immediate capital (paying off a mortgage, starting a business) or a shortened life expectancy.

How does a military pension compare to a civilian 401(k)?

A military pension at 20 years is roughly equivalent to having $800,000-$1,500,000 in a 401(k), depending on rank, using the 4% safe withdrawal rule. An E-7 pension of $2,600/month ($31,200/year) is equivalent to $780,000 in retirement savings. An O-5 pension of $4,900/month ($58,800/year) is equivalent to $1,470,000. And unlike a 401(k), the military pension is guaranteed for life with COLA protection and carries zero market risk.

Do I pay Social Security tax on military retirement?

No. Military retirement pay is not subject to Social Security (FICA) tax. You do pay federal income tax and, in most states, state income tax — but the 6.2% Social Security tax and 1.45% Medicare tax are not withheld from your pension. This effectively gives you a 7.65% raise compared to equivalent W-2 income.

Ready to run your numbers? Use our military pay calculator to get your current base pay, then apply the retirement formula above. For more on how your pay changes over a career, see our 2026 military pay raise guide and military vs civilian pay comparison.