How do I plan to retire military?

Someone who plans a military pension faces several challenges and tasks. The most urgent, which could be solved several years before retirement, is to decide on measures to receive a military pension. The staff will also have to prepare to find new accommodation, check the potential restrictions of new jobs and consider advice and advice to help you with the transition.

The foundations of military pensions are simple. Someone who has been in the armed forces for less than 20 years will not receive any military pension. Someone who has been in the armed forces for 40 years or more years will receive a pension equal to his army. Someone who is in the armed forces for 20 to 40 years will receive a pension worth the percentage of their army payouts based on the length of service. Since 1986, however, military staff must make an important decision on their military pension to achieve 15 years of service.

the key to planning military retirement - and know what military pensionTe - is an understanding of the three systems in your case. Someone who entered service before September 1980 falls into the final reward system. Someone who entered between September 1980 and August 1986 falls under the High 36 system. Someone who entered August 1986 is under 36, but instead it can opt for a system known as a career or Redux bonus. There are several key differences between systems that affect how much pension pension is paid.

The final remuneration system is the easiest to understand. It sets a pension at the level of payment to a person received in the last month of the service. The person receives 50% of this amount as a pension if he has completed 20 years of service, plus 2.5% for each additional year. This pension then increases every year in accordance with the consumer price index.

HIGH 36 System Find an average wage during the highest paid 36 months of militarya person's career. In addition, it works in the same way as the final payment. This means that the initial amount of pension is 2.5% for each year of service, the amount increasing in accordance with inflation.

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Redux system uses the same 36 -month average base as 36 high, but has certain key differences. The Redux Redux ratio starts at 40% for 20 years of service and increases by 3.5% for each additional year. The initial pension is increased by only 1 percent point below the consumer price index. These differences apply only to this until the person is 62, at this point receives the same pension as he would receive under the high 36.

6 If he chooses Redux, he will receive a $ 30,000 tax bonus (USD). Of course, under Redux, his starting retirement will be lower and up to the age of 62 are growing slower. A better choice depends on several factors, including age, salary and service length after retirement, so the person will have to carefully crush the numbers. It is also important to take into account the potential yield that wouldIt could be carried out by investing a cash bonus for providing additional pension income.

The financial provision is not the only problem for the person who plans to retire. Deciding where to live can include several factors. One of them is whether to choose private housing or - if appropriate or necessary - a pension community or a nursing home. Some former military staff may be more comfortable to live with other military personnel or near it, while others prefer a clean break. The selection of locations may also include control of tax laws: some states tax income from military pension programs, others not.

Someone who leaves the army may decide to accept the work, and this is subject to some restrictions. Most remarkably, a former military member will be forfeited to all retirement remuneration that is due while working for a foreign government, whether as an employee or a supplier if he does not receive the prechantszi permits from the army. In principle, the former military member may not work for the Ministry of Defense in any capacity within six months of retirement, although the person should check whether this rule is currently valid or temporarily abandoned.

The person who leaves the army can also experience a significant cultural shock in adapting to civilian life. To alleviate this, each of the different branches of the army has a department to help with modification. This includes the Office for Retirement of the Army, the Air Force Retirement, a branch of navy retirement activities.