When Is The Right Time To Retire?
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- Опубликовано: 18 окт 2024
- One way to understand the best time for you to make your retirement decisions is to look at how others have made the decision. Judging from the data, a remarkable number of people would say that the best time to retire is at exactly 20 years.
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Note: The views expressed in this video are the presenter's and do not represent the policy or guidance of the Department of Defense or its subordinate elements.
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I got out at 20 on the dot. The sooner I get out the sooner I start the whole “starting over” process. Peel the bandaid so to speak.
Brilliant. Especially if part of starting over involves getting a new job
I can only speak for myself, I will likely retire as an E8 at 20 years, maybe will go to 21 to ensure I get my 3 years as an E8. That is about the only factor for me in determining whether I go over 20 or not. For me, I would never be able to fully retire and live the life my family has become accustomed to. I absolutely need to start another career and have my military retirement supplement my income. Staying in the military longer just makes it harder for me to start the next chapter in my life. Thank you for the great video.
You're INDEF, they may not " let" you out.....
@@kurtrussell5228 that’s always true, and they may just recall retired service members en mass. Likelihood is very low.. and I’m in an over strength MOS thanks to the new ARSTRUC
@jasonbourne1119, you know what they say the difference between an E8 and an E9 is at retirement? The E8 worked his whole career.
Retired at +/- 21 years as a 1SG. The Battalion Commander had me in for his required Hooah speech before he signed my retirement packet. He asked why I was retiring when I would very likely be a CSM in two years. "Sir, I'm just not having fun anymore.". He laughed, mentioned that I had just destroyed the rest of his interview, signed off on the packet. At some point you just know.
I see those illusive Warrants on the chart, so evidently they do actually exist and can be found : )
Important to note that you may not be allowed to retire at 30, or may be asked to stay longer. This does not add to the vested part of your retirement, but many of the SMAs have been over 30 years, and Warrants can stay quite a lot longer. Not sure if O6s can stay longer, but it wouldn't surprise me if the need was there.
You make a great point about "just not having fun any more". Personally, I was getting one of those "closed door counseling sessions" about how I needed to work harder to keep other COLs informed and I thought..."You know, if I'm the problem...I'd be happy to get out of the way."
@@the_bureaucrat I hear you. I've seen something similar, and it normally gets down to the boss not actually understanding or doing the job. Sometimes folks don't understand specialization. Generalization (no pun intended) is kind of a norm - but a problematic norm. We need both.
I am in a fantastic position in a clear state of mind, but it is time to do something else. I will have 20 yrs and 2 days in the very near future. Been loving the informative content!
Will do...let me know if there's anything specific you are looking for. chuck.weko@gmail.com
Great analysis. High year tenure (HYT) likely comes into play concerning getting out on the enlisted side. E-7 is about 24, E-8 is about 26, and E-9 is about 30 when they are forced to retire if they can can’t promote or get a waiver.
I think you are right. I need to look more carefully at that enlisted angle.
My mentor gave me what I think is the best advice ever regarding when to retire upon reaching 20 years active service . He asked me this question, “do you have any unfinished business in the US Army?” If so, stay longer, if not, punch out.
That is pretty good advice. After 20 years, the fiscal compensation isn't enough to make up for the BS. But if you have a particular windmill that you still want to tilt at...that can make a difference.
Chuck. WRT you chart, you seem to have forgotten that the years 26-30+ of the 2010 black line were retiring under the either the final pay or high 1 retirement calculation. Their DIEMS dates were 3-4 years prior to the first day on active duty. My branch (FAO) had some challenges managing the O6 population during the end of service transition from Final pay to high three, as O6s were staying 2+ years longer to get the full value of the O6 high 3. IIRC we were sitting at up at 149% strength in O6 when the FY 2011 board met (not a great situation for the O5s trying to make the jump that year).
The 20 year exit point IMHO is driven by two realities. 1.) Prior service MAJs (think 3-4 years enlisted), who will go to the board at ~20 TIS or shortly after. Many of them and their families understand that it is either retire at 20 as a MAJ, or they will likely have to stick around for 4-5 years to account for the board, waiting to pin, then the three years to lock in rank and high 3.
2.) Non prior service O5s, know at the KD selection point (year 18-19) if they are competitive for O6 or not. If not, every day one stays after 20 is a day eating up time you could be doing something else.
For all of us.....one day we come to the realization that the cost of staying exceeds the cost of leaving.
@l4c390, you make some damn good points.
The reason why they stayed longer in FY10 is because the RCP dates allowed for you to serve longer. I personally stayed till 24 years because i had 3 years Reserve time which allowed me to cap out at E7 pay which meant my retirement pay was higher than an E8 that got out at 20 or 21 years and higher than that of a CW3 with 20 years. The extra four years put about an extra grand in my retirement plus I had a cush job for my last 4 years which allowed me to work on my medical ensuring a 100% P/T VA rating so it was sooooo worth it.
That "extra grand" you mention is a curious effect of how the retirement calculation works. Folks can seriously boost their pension by adding a couple more years on.
A wise man told me once that if you stay past 20, you're paying to play Soldier. It's an over simplification, but very true. If you can make the same or more on the outside, then why put up with all the extraneous crap on the inside on top of the lower pay? I'm at the point where I can retire in a year. I decided to skip ILE because even if I get selected for O5, I'm not pinning for a year and then it's 3 more years to get the max retirement. That's a lot of stupid stuff to put up with - online training, HIV tests, random vaccines, toxic commanders, etc to simply earn an extra $300 a month in retirement. The civilian equivalent for my job pays around $160k with an upper level of about $200k if you want to work hard. An O4 at 20 gets about $173k if you adjust for untaxed BAH/BAS. O4 retirement would be about $55k before taxes. Even with no VA benefits, you're well ahead of the game even if you get the average pay. Like the 1SG said, it's just not fun anymore.
I tend to agree. Especially if you are planning to work a job after the military. Some folks can eek out enough of a pension and VA disability to not have to work again. That? I think that's worth a couple more years.
BRS guys should go before 20 - that’s the only group it makes sense for. Also, retirement decisions are not always decisions. If you’re not an O6 or E9 you hit high year of tenure before 30. Warrants are a different case. They’re technical SMEs, so most can significantly increase their income by going at 20. Not to mention how few W4 and W5 positions there are
Even for BRS it makes sense to stay to at least 20. They get a 2.0% multiplier instead of a 2.5%.
The blended system was interduced specifically to help people leaving before hitting 20
"help", yes...but not necessarily enourage.
Chuck...you put so much good and relevant information into easy digesting and thoughtful short clips...please consider adding a JOIN button...it will keep your coffee cup full...
Retirement starts with a 'request'?...If they will allow you to retire is a factor too, right? Or is that only when the NDM is handed out? We are always one boom away from a huge spin up...melon on the edge of a knife (no, not Meatloaf) Thanks!
I get off topic so easily...thanks for bearing/baring(?) with me!
Good advice. I just got back from my travels to meet grandbaby #2 and will give it some serious consideration. BTW, there are lots of things they can do to mess with your retirement packet (I've experienced a couple nasty tactics dressed up in fine clothes). But my impression is that if a service member is serious enough about it, the brass really doesn't want them around.
The best career advice came from my CAS3 instructor. The LTC told us to stay long enough to get our company command time in. Then resign, move to Florida, buy a Harley, and join a motorcycle gang. We all laughed. But he explained we’d all have to endure years of pointless staff work after company command and at the end most of us wouldn’t know real leadership from a duck. He was right.
My criteria was “Was I contributing?” and “Did the Army think I could contribute?” The answer to both was “no” so I bailed.
I do wish I could stop seeing the types the Army thought could contribute (like the Colonel in the dog mask). We all know promotion is a zero sum game - not everyone can be a colonel or general - but please don’t insult me.
I'm with you on the dog mask type stuff. I knew a COL who got picked up for solicitation of prostitution...play stupid games, win stupid prizes.
16b years air force here. 8 active 8 reserve (10 total active).
I am an air reserve tech and I just found a retirement calculator. Turns out I'll need to be an art all the way to my retirement age, 57. That's about 25 years away from me. Full disclosure, I never wanted to get out of active. I have severe test anxiety, and I had high year of tenured out. I'm always asking if there are positions in my career field for me to go back to. All slots are full for my rank, and rank below.
You have a unique position that lots of people would kill for. Wanna hit me up at chuck.weko@gmail.com to dig into the details of how to get the most out of it?
Reccommend that when analyzing the impact of BRS you review the numbers of people leaving before retirement.
The first reason is that no one who has served 20 years in 2022 could be on the BRS, it was introduced too recently and had a cutoff date based on how many years you already served.
Second the argument of impact is if the BRS will encourage leaving prior to retirement because of the 401k (TSP) incentives.
It may be intresting to explore if DoD believes that BRS will increase the number of people leaving prior to 20 and that is why they eliminated HYT to intice lower ranked NCOs to stay in to 20 or longer
@sunruler2000 Great idea. I have looked around, but I can't find the data...do you know where it would be? chuck.weko@gmail.com
During the 'surge years' in the Iraq War there was an increase in the number of OCS officers. If the OCS grads are retiring at 20 years, it could reflect in a change in the number of O-4 retires from previous years. More O-4 retirees will then make O-5 command boards less competitive because the pond gets smaller but the same number of fish get collected.
@226michaelsmith, you bring up a good point. There are a couple of large personnel policies that are probably lurking under the hood of all this data.
I retired at high year tenure @20 years, even if I had put on another rocker I still could have only stayed 22.
Sounds like you jumped at the right time!
@@the_bureaucrat Yes, then transitioned that slow promoting aviation maintenance MOS into a nice 6 figure civilian job, almost civilian it’s still with a govt alphabet agency.
ASAP
That seems to be the consensus.