Retirement is a welcome milestone for those who have dedicated many years of their lives to their chosen profession. Unfortunately, before leaving the world of employment, upcoming retirees must first prepare for life without a steady working income. For those in the military looking to retire in the near future, a military retirement calculator can provide some foresight into what to financially expect.
What is a U.S. Military Retirement Calculator?
A military retirement calculator, like all other types of retirement calculators, is a method of organizing the retiree’s financial benefits. The process of organizing and filing the documents needed for a military retirement calculator can be time consuming and thus it must be done over a lengthy period of time, so patience as well as financial know-how are must-haves for military retirees. If done correctly, a military retirement calculator provides the retiree with the welcome knowledge that they and their family can be assured of an income that will support them long after life in the military.
There is no specific type of military retirement calculator -- rather, there are several types. Each military retirement calculator depends on several factors. The most important factors to consider before choosing a military retirement calculator applicable to the retiree’s situation are the actual number of years the retiree spent in the military, the age at which the military retiree chooses to retire, and of course the rank that the retiree reached within their chosen branch of the military.
The Final Pay calculator is only applicable to those who entered the military before September 8, 1980. This military retirement calculator takes rank, age, and years spent in the military into consideration to formulate a system of retirement that also includes room to incorporate the rate of inflation. This calculator is quite personalized, and allows the retiree to input specific financial information into tables and/or charts to create the retirement plan that is best for them.
The High-3 calculator takes all of the necessary factors into consideration as well, but this military retirement calculator has more specific guidelines as to which retirees can use it. If a military retiree entered the military on or after August 1, 1986, this plan is only for those military retirees that choose not to accept a bonus (the amount of which is dependent on the rank that they attained). Otherwise, this plan is applicable for those who entered the military between September 8, 1980 and July 31, 1986.
There are other methods besides the Final Pay and the High-3 to choose from, and each have guidelines that are sure to fit many different levels or areas of retirees. Although the task of finding the right military retirement calculator can certainly be a daunting one, there are always retirement councilors ready to help military retirees with their choice. Those who take the time to evaluate each option will not only be rewarded with the military retirement calculator that is best for them, but also with the finances that will allow them to enjoy their retirement without worry.