U.S. Military Retirement - Pros and Cons

Military personnel are eligible for retirement after a minimum of 20 years of active-duty service. (In select times in history, 15-year military retirements have been offered, but that is not the norm.)

Military retirement is one of the main reasons people elect to join the military and it carries with it several benefits. However, there are also difficulties associated with military retirement.

Below are the pros and cons associated with military retirement.

Retirement Pay for Military Retirees

Military retirees receive monthly retirement pay. The amount of pay is dependent on rank and time in service at the time of retirement.

A military retiree who was active duty for 20 years receives 50% of his base pay. A pay increase of 2.5% is given for each additional year of service beyond 20 years, up to a maximum of 100% of base pay. For example, a retiree who was active duty for 23 years receives 57.5% of his base pay.

Though military retirement pay is a great benefit for military retirees, it is not enough to pay all living expenses, so retirees generally have to seek additional employment after retiring.

Civilian Employment for Military Retirees

Dependent on the type of job one did in the military, it may be difficult to find employment that matches the skills and experience gained during the time in the military. Some military retirees find it necessary to go back to school or to obtain additional job training in order to be employable in the civilian world. In some cases, military retirees may find it necessary to accept entry level jobs due to their lack of civilian employment experience.

Health Care Benefits for Military Retirees

Health care benefits are one of the biggest plusses of military retirement. Military retirees and their dependents have free medical insurance regardless of whether they are unemployed, self employed, or are employed by a civilian company. Since health insurance costs are high, this is an excellent benefit.

In most cases, military medical insurance known as TRICARE covers 80% of the allowable charges of surgeries, medical tests and hospitalization. Retirees and their dependents must pay a co-pay for doctor visits and also must meet an annual deductible (generally $300 - $400 per family).

Some civilian doctors are unwilling to accept TRICARE, but with a small amount of searching it is generally quite easy to find a good doctor that accepts TRICARE. All hospitals accept TRICARE so you will never be denied care at any hospital if you are covered by military insurance.

Care received in military clinics and hospitals is offered free of charge to military retirees and their dependents.

Shopping Benefits for Military Retirees

Military retirees and their dependents are eligible to shop at base exchanges which are like department stores and commissaries, the military version of grocery stores. Some bases also have other stores such as furniture stores and toy stores.

Generally speaking, prices are cheaper at stores on base than they are at their civilian counterparts, but you may find better deals on sale at civilian stores.

In order to shop at stores on base you must have a valid military ID card.

Military Discounts

Numerous companies of different types offer discounts for those with military ID cards. Whether you are active duty, retired, or a military dependent, it never hurts to ask if a place of business has a military discount. Discounts generally range from 10% - 20%.

All in all, military retirement carries with it tremendous benefits that far outweigh negative aspects.