Guest Post on The Military Guide: Blended Retirement System

Hello everyone,

I’m proud to announce the publication of my guest post over at The Military Guide.

Doug Nordman was kind enough to feature my thoughts on the new military Blended Retirement System. In my guest post I also provide a spreadsheet which you can use to calculate what you stand to gain – or lose – if you chose to opt into the BRS.

Many service members have a choice coming up in 2018. Either stay with the old “cliff vested” pension system, or jump to the new been BRS, which reduces the pension by 10% but provides a TSP (401k) match of up to 5%, retainable even if the member leaves the service before 20 years. New recruits won’t have an option.

Like everything we discuss here, I can’t tell you what to do. Only you know your plans and financial situation. In addition, your service may have other policies which may make reaching full retirement easier or harder than the 17% statistic quoted by the DoD. For example, the USMC makes a policy of NOT retaining a good chunk of its troops, has had the lowest average age of any service. On the other hand, USCG Officers can reach “tenure” as an O-4 and are allowed to stay in service until 20.

If you haven’t been over to The Military Guide, Nords has done some great work. In addition to being a great Financial Independence example, he provides rational advice on a number of topics, from investing, deciding when its time to leave active duty, and how to get the best bang for your buck with USAA.

I hope you use my spreadsheet to shine some light on the BRS. Let me know what you think!

See my Guest Post HERE.

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