Basic Military Compensation: $85,047.96 Special Pay and Bonuses: $2,472 Total Direct Compensation: $87,519.96 Added value of Service-estimated indirect compensation: $3,275.21
How much are military retiree medical benefits worth?
It would not be unreasonable to place a value of $10,000 per year on military retiree medical benefits, even for a healthy individual.
What are the financial benefits of service in the military?
Service in the military can bring with it quite a lot of financial benefits that are often underappreciated or not considered when evaluating total compensation. In fact, most servicemembers earn more in total compensation than their civilian counterparts when you consider similar levels of education and experience.
How much is an active duty military pension worth?
Still, it is critical to understand just how incredibly valuable an active duty military pension can be as an E-7 pension can be worth around $1.4 million at the time of retirement and an O-5 pension could be worth as much as $2 million!
Is your military compensation worth more than you think?
Your military compensation is worth more than you think it is when you consider your base pay, tax-free income, healthcare, retirement benefits, and access to other benefits. Advertising Disclosure.
Are the military benefits worth it?
Military Retirement Benefits are Worth Millions. Military members receive a lifetime pension based on the average of their highest three years of base pay. Military retirees who are in the High-3 Retirement System receive 2.5% of their base pay for each year of service.
How much is a 20 year military pension?
Most retirees at 20 years will receive 50% of their base pay, which would equal the following amounts: E-7 Monthly: $1,997.20. E-7 Annually: $23,972.40. O-5 Monthly: $3,848.70.
How much are military pensions?
Your retirement benefit is determined by your years of service. It's calculated at 2.5% times your highest 36 months of basic pay.
How much compensation do soldiers families get?
The Department of Veterans Affairs pays a tax-free monthly amount to an unremarried surviving spouse of a service member who dies on active duty or from a service-connected disability. This is a flat-rate annuity of $948 per month, and an additional $237 is paid per dependent child.
Do veterans get paid for life?
The SSA evaluates military records when claimants apply for benefits, and qualifying veterans can get a lifetime earnings credit for wages during service. Eligibility is based on length of service.
Can you live off military retirement?
Can You Live Off Military Retirement Pay? The short answer is, yes, absolutely. But it takes a lot of planning to make this work. A good friend of mine, Doug Nordman, wrote the book, The Military Guide to Financial Independence and Early Retirement, and founded the website, The Military Guide.
Is 20 years in the military worth it?
The total expected value of retiring at 20 years is worth nearly a million dollars, which means that the last two years of work in uniform are worth roughly half a million each to a typical officer (annual base pay plus half of their retirement stream).
What benefits do you get after 4 years in the military?
Education and SalaryJob Training. Everyone in the Military is trained in a job specialty. ... Money for College. During and after your time in service, the Military encourages you to advance your education. ... Pay, Allowances and Promotions. ... Vacation. ... Retirement. ... VA Benefits. ... Other Lifestyle Benefits.
How much does a retired e8 with 20 years make?
roughly $22,000 a yearHow much retirement pay a member receives is based on years of service and rank. Every member's retirement pay differs to some degree based on length of service and rank. For example, the retirement of an E-8 with 20 years is roughly $22,000 a year for just waking up in the morning.
How much do military wives get paid?
There is no military spouse pay or stipend, but the military offers a number of benefits to help service members and their families. Your first stop after the wedding should be the nearest military ID card issuing facility to enroll in DEERS, the Defense Enrollment Eligibility Reporting System.
How much is a soldier's life worth?
In substituting heavily armored combat vehicles at a cost of $170,000 each for lighter, $50,000 vehicles during the 2000s, the U.S. Army reduced infantry deaths by 0.04-0.43 per month at an estimated cost per life saved that is below the $7.5 million commonly accepted “value of a statistical life,” say Chris Rohlfs of ...
What benefits does a military wife get?
8 Awesome Military Marriage Benefits You Have as a SpouseBeing able to stand next to your hero. Yes! ... Healthcare is Included. ... You Can Get Marriage Counseling and Family Support. ... Free education. ... Military Discounts All Year Round. ... Housing & BAH. ... World Travel. ... Joining a community.
How Much Is Military Retirement Really Worth?
Let’s look at an example of retirement pay for an average military career. Since military members are eligible for retirement benefits at 20 years,...
Example Monthly and Annual Military Retirement Pay
As we mentioned, we will look at a military retiree with 20 years service at the ranks of E-7 for enlisted and O-5 for officers. The base pay for t...
How Much Is Military Retirement Pay Worth Over A Lifetime?
The next factor to consider is that military retirement pay will be there day in and day out. There are few places in the world that someone can re...
Value of Military Retirement Medical Benefits
OK, there is a minimal TriCare payment, but compared to what civilians pay, it is basically a non-issue. Benefits for retired military members are...
Commissary, Base Exchange, and Other Base Benefits
I won’t even try to assign a value to these benefits because they don’t apply to all military retirees equally. Some people may practically live on...
Your Military Retirement Is Worth Millions
Thousands of dollars coming in on a regular basis quickly add up over the years. Add in increases for inflation, essentially free health care, and...
Salary and Pay
- Pay and benefits in the military are quite competitive. Active duty is full-time work that includes guaranteed pay, cost-of-living adjustments, housing allowances, and unmatched opportunities and bonuses. Although part-time, the Reserves provide many of the same perks. The more you earn, the longer you serve, and the higher your rank. Other monetar...
Health and Dental-Care
- Healthcare is currently one of the most contentious issues. Whatever your viewpoint on the subject, one thing is certain: going to the doctor is costly! The military provides its personnel and families with free, comprehensive health care. Hospitals, clinics, and dental services are available to active-duty military soldiers and their families on or near most military sites. Active-duty servi…
Housing
- If you live off base, the military provides a tax-free housing allowance. If you’re living off base, the Basic Allowance for Housing (BAH) rates can help you find a place to live. BAH is intended to give housing compensation to uniformed military members based on housing expenses in each local market. This is only paid when a military member does not have access to government quarters…
Veterans’ Benefits
- Home loan guarantees, small business loans, health care, and other benefits are available to veterans through the federal government and most states. The Veterans Affairs (VA)guaranteed house loan program is one of the most popular veteran programs. It allows qualified purchasers to obtain zero-down financing, making it easier for veterans to own their dream homes.
Spousal Benefits
- Being married to an active or former military soldier can also be beneficial since the U.S. government actively supports the spouse’s needs. Some of which include the following: