Twenty years is the classic military retirement milestone — the point at which you can retire with an immediate, lifelong pension. But exactly how much? It comes down to one formula and which retirement system you're in.
Military retired pay at 20 years is:
Multiplier × Years of Service × High-3 average basic pay
So at 20 years, High-3 retirees get 50% of their High-3 average (2.5% × 20), and BRS retirees get 40% (2.0% × 20).
Using illustrative High-3 averages (your actual figure depends on rank and pay at retirement):
| High-3 average | High-3 pension (50%) | BRS pension (40%) |
|---|---|---|
| $60,000/yr | $30,000/yr ($2,500/mo) | $24,000/yr ($2,000/mo) |
| $72,000/yr | $36,000/yr ($3,000/mo) | $28,800/yr ($2,400/mo) |
| $90,000/yr | $45,000/yr ($3,750/mo) | $36,000/yr ($3,000/mo) |
The pension is only half the picture. If you're under BRS, you've also been getting up to a 5% government TSP match for your whole career. That balance — plus your own contributions and decades of growth — is yours on top of the pension. Under High-3 there's no match, but your own TSP savings still add up.
Each additional year adds to the multiplier: at 24 years, High-3 pays 60% and BRS 48%; at 30 years, 75% and 60%. Staying longer also tends to raise your High-3 average as your pay grows.
"High-3" is the average of your highest 36 months of basic pay — almost always your final three years, when pay is highest. Only basic pay counts; allowances such as BAH and BAS and special pays are excluded. For example, if your basic pay over your last three years averaged $6,000, $6,200, and $6,400 a month, your High-3 monthly average is about $6,200 — and that figure, annualized, is what the multiplier is applied to.
Military retired pay is subject to federal income tax. State taxation varies widely: a large and growing number of states now fully exempt military retirement pay from state income tax, while others tax it partially or fully. Where you choose to live in retirement can meaningfully change your take-home pension, so it's worth checking your intended state's rules before you settle.
Military retired pay receives an annual cost-of-living adjustment (COLA) tied to inflation. This is one of the pension's most valuable features: unlike a fixed annuity, its purchasing power is protected over a retirement that may last 30 to 40 years. A $3,000/month pension that rises with inflation is worth far more over time than the raw number suggests.
At retirement you'll decide whether to enroll in the Survivor Benefit Plan (SBP), which continues a portion of your pension to a beneficiary after your death in exchange for a monthly premium. Separately, a medical or disability retirement uses a different calculation and can apply before 20 years of service — those cases don't follow the standard 20-year formula above.
Calculate your exact pension + TSP →Yes. Active-duty members who complete 20 years generally begin receiving retired pay immediately upon retirement. (Reserve and Guard retirement typically begins at age 60, based on a points system.)
On your pay. The formula uses your High-3 average basic pay, which reflects your rank and years of service at the end of your career — not a flat rank-based amount.
No — it supplements it. BRS trades a slightly smaller pension multiplier (2.0% vs 2.5%) for government TSP matching throughout your career, so BRS retirees receive both a pension and a matched TSP balance.
Yes. Military retired pay receives annual cost-of-living adjustments, protecting its purchasing power over a long retirement.
Related reading: BRS vs. High-3 explained · 2027 military pay raise · Your TSP after you separate