Current Retirement System
- Thread starter SVT4ME
- Start date
Yup. But I would not count on it staying the same. Since TA has been cut I would encourage your son to school it up first. After a few years of stabilization there may be better opportunities for him. With the draw downs happening I don't think this is a good time to get in.
They have been mulling over turning it into a 401k style system of late from what I recall. No clue what's gonna happen with it with all these budget cuts.
50%
Although this will be like any other "cut" or benefit loss. You will be grandfathered once your in Active Duty service.
If he is worried about school, also look into the Guard/Reserve, that money is in a different pool aka GI Bill.
Although this will be like any other "cut" or benefit loss. You will be grandfathered once your in Active Duty service.
If he is worried about school, also look into the Guard/Reserve, that money is in a different pool aka GI Bill.
I'm unless you joined before 31 July 1986 you fall into CSB/Redux. Which is a choice system.
Choice one, You can take Redux Bonus of $30k to invest or blow at 14.5 years of service and receive reduced benefits at 20 years of service, 40% to be exact. Once you hit age 62 they bump your retirement back up to 50%.
Choice two, You take 50% at 20 years and walk. This is actually high-3 which is an average of your highest 3 years base pay salary. Staying longer than 20 years with this plan increase your rate 2.5% per year.
One of the benefits of Redux is the possibility of receiving it in a tax free zone. You can also continue service even though you received the Redux bonus and have your retirement pay increased back up to the 50.5% at 23 years of service. Staying longer than 20 years increases your retirement rate at 3.5% per year.
Both systems peak at 30 years of service at retirement rate of 75% base pay.
I'll be in the choice zone next year when I hit 14.5 years. My issue is with the draw down I don't see my promotion rates staying the way they have been for the past 10 years. I'll probably take my 50% and walk at 20.
Choice one, You can take Redux Bonus of $30k to invest or blow at 14.5 years of service and receive reduced benefits at 20 years of service, 40% to be exact. Once you hit age 62 they bump your retirement back up to 50%.
Choice two, You take 50% at 20 years and walk. This is actually high-3 which is an average of your highest 3 years base pay salary. Staying longer than 20 years with this plan increase your rate 2.5% per year.
One of the benefits of Redux is the possibility of receiving it in a tax free zone. You can also continue service even though you received the Redux bonus and have your retirement pay increased back up to the 50.5% at 23 years of service. Staying longer than 20 years increases your retirement rate at 3.5% per year.
Both systems peak at 30 years of service at retirement rate of 75% base pay.
I'll be in the choice zone next year when I hit 14.5 years. My issue is with the draw down I don't see my promotion rates staying the way they have been for the past 10 years. I'll probably take my 50% and walk at 20.
The Guard has a crap load of different retirement possiblities. You can do the weekend warrior thing and after 20 good years get your pennies/month at age 59 or whatever it is. You can get a Technician slot (Civil Service) and do 20 years of that while still attending UTAs and what not to maintain "good" years, thereby retiring with 2 different incomes at whatever the retirement age is then. Or you can do what I am doing and either get long term Title 10 orders and/or an AGR slot and do your 20 that way. That is the same as 20 years Active Duty. I currently have a mixture: 7 Technician years, 10 DSG (weekend warrior) years, and 7 Active Duty years. I am activated Title 10 and LWOP Technician at the same time right now, extremely confusing as far as retirement is concerned but I have another 13 years to figure it out.
Oh and education benefits are awesome in the Guard (depends on state benefits too). I'm almost finished with my Bachelors of Science in Aeronautics using strictly Federal Tuition Assistance since I've been activated for 5 years. I haven't even touched my Post 9/11 GI Bill benefits (100% rate) or my Hazelwood Act (benefit for Texas veterans, 160 free semester hours at any state College/University). Both the Post 9/11 and Hazelwood Act can be transferred to dependents, which is what I'm planning on doing if they aren't taken away first.
Oh and education benefits are awesome in the Guard (depends on state benefits too). I'm almost finished with my Bachelors of Science in Aeronautics using strictly Federal Tuition Assistance since I've been activated for 5 years. I haven't even touched my Post 9/11 GI Bill benefits (100% rate) or my Hazelwood Act (benefit for Texas veterans, 160 free semester hours at any state College/University). Both the Post 9/11 and Hazelwood Act can be transferred to dependents, which is what I'm planning on doing if they aren't taken away first.
I still think that doing 20yrs active duty is the best option out there, if you can get in.
16 years Active Duty in. Taking my 50% @ 20 yrs and rolling out while I can.
Gifted my Post 9/11 GI Bill to my daughter 2 years ago (Free ride for 3 years + TA & Living Expenses). I have about 8 classes left for my Bachelors via Embry Riddle.
I think TA will come back quicker than most think for Active Duty Branches, lots & lots of Universities get their mouths fed by federally funded TA programs, and as of now that isnt happening.
Gifted my Post 9/11 GI Bill to my daughter 2 years ago (Free ride for 3 years + TA & Living Expenses). I have about 8 classes left for my Bachelors via Embry Riddle.
I think TA will come back quicker than most think for Active Duty Branches, lots & lots of Universities get their mouths fed by federally funded TA programs, and as of now that isnt happening.
After 29 years in, I am trying to get out! :lol: I retire next year.
Fixed for accuracy
That shit is not welcome here. I don't care if you are trying to be sarcastic, funny or serious.
How do you want me to sugar coat it then? Because you should know that it's no walk in the park to just say ''ill do 20 years'' and get out. I didn't say it in a bad manner. On contrary I wish him the best.
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OP...50% for 20 yrs and up to 75% for 30 yrs. Just retired after 30 and I 100% believe the system will stay the same for several years to come. Active Duty AF is about the best out there IMHO...but after 30 years would I say anything else?
School all the way up to Masters Degree is as close to free as you can get. Funds will be there....sometimes you just have to have faith. Tell him to not hesitate and push as hard as he can to get as much education as possible. Congrats...and good luck!
Peace
Bob
School all the way up to Masters Degree is as close to free as you can get. Funds will be there....sometimes you just have to have faith. Tell him to not hesitate and push as hard as he can to get as much education as possible. Congrats...and good luck!
Peace
Bob
When I enlisted in the USAF 1981 I was told if I did 20 years I'd get 50% of my pay as retirement and free medical & dental for life... LOL! I did 21 years and am now finding out what a joke those promises turned out to be...
U.M.
U.M.
I retire in 5 months....20 was a long enough ride for me active Army
I took the redux and invested it mostly in the quality of life of my rather large family. Wife is using the GIB to go to school. I hit 19 this year. Oldest son wants to join the Army and be a Combat Engineer. He's in the AF JROTC. I don't get it. He's going to do what he wants either way. I'm almost done with my Bachelor's degree through AMU. I plan to at least get my 10% + back and exit at 23 unless I get picked up on the next list. If I do then I will stay a little longer to see how it's going to pan out. I will be self-employed when I retire and the wife will be supporting me in the way I've been accustomed. Plus I will have at least 2 of the kids gone by then. I fully enforce the rule of 1872 in my house. Once you are 18 and graduated from HS you have 72 full hours get your stuff and yourself out into the world and work the plan you should've had.
This man knows!!!! I retired after 21 yrs Air Force, and found NO dental with my retirement... Thank goodness my post AF job has good bennies...:bs:
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