How do people use military Retirement Calculator?   by Elliot Clark

Military Retirement Calculator is an online tool that helps military personnel to calculate how much will they receive after they retire based on number of years they spent on active duty and the Retirement Plan that are applicable to them.

Military Retirement Calculators differ based on military retirement plan that is applicable to certain individual. There are three different plans that are assigned to military personnel based on date, when he/she joined the army. These plans are not much different from each other. The difference between them is way of calculation and amount of initial premium given to the retirees. These plans are Final Pay, High-3 Year Average and Redux.

Final Pay plan is applicable to individuals that joined the army before September 8, 1980 and served at an active duty for at least twenty years. The basic variables that you need to enter into the military retirement calculator are age of an individual, number of active years at the army and base pay. As a result the calculator displays the amount that you will receive after retirement. The calculator may also take into consideration tax rate, inflation and dozens of other variables, however generally number of variables is limited to those three that are listed above.

High-3 Year Average plan is applicable to individuals that joined the army after September 8, 1980 and served at an active duty for at least twenty years as in the case of Final Pay plan. The basic variables that you need to enter into the military retirement calculator are age of an individual, number of active years at the army and base pay as in the case of Final Pay plan, but with the difference that in case of High-3 Year Average plan as base pay the average base pay for those 36 months in individuals career that paid the highest base pay is used.

Redux plan is applicable to individuals that joined the army after August 1, 1986 and served at an active duty for at least twenty years as in previous two plans. Under this plan one time fixed premium of $30,000 is also input into the military retirement calculator.

About the Author

Elliot Clark,

Owner of blogs on Military Retirement Plans and Military Retirement Calculator
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