Should I take the BRS lump sum?

The lump-sum option is generally a poor financial deal — you give up significant lifetime pension value for a discounted cash payment. Run the numbers carefully.

The Survivor Benefit Plan converts your pension into a survivor annuity. Couples should treat it as life insurance and compare it to private-market term policies.

How does VA disability compensation affect my plan?

VA disability is tax-free and indexed to inflation — extremely valuable income. Yearfold's calculator can model it as a separate fixed income source.

By profession · Military service member

Retirement planning for active-duty and veteran service members

A profession-specific look at the retirement levers a military service member actually has — pension rules, tax-advantaged accounts, and the Social Security wrinkles unique to your job.

Last reviewed May 4, 2026

Editorial review pending — see editorial process

The retirement landscape for a military service member

Pension

Service members under the Blended Retirement System (BRS, post-2018) get a 40% pension at 20 years plus a TSP match. Legacy High-3 pension is 50% at 20 years with no match.

Tax-advantaged accounts

The Thrift Savings Plan (TSP) is a 401(k)-equivalent with very low fees. Roth TSP is available. The Combat Zone Tax Exclusion can let you contribute Roth dollars that have never been taxed.

Social Security

All service since 1957 has been covered by Social Security. Disability ratings from the VA are separate income.

Run the calculator with a typical military service member starting point

Pre-filled: age 35, savings $95,000. Adjust to your actual numbers from there.

Run my numbers →

Frequently asked

Should I take the BRS lump sum?
The lump-sum option is generally a poor financial deal — you give up significant lifetime pension value for a discounted cash payment. Run the numbers carefully.
What about the SBP?
The Survivor Benefit Plan converts your pension into a survivor annuity. Couples should treat it as life insurance and compare it to private-market term policies.
How does VA disability compensation affect my plan?
VA disability is tax-free and indexed to inflation — extremely valuable income. Yearfold's calculator can model it as a separate fixed income source.

Primary sources

Every profession-specific rule above traces to one of these primary sources. We re-verify each link annually; current as of the last-reviewed date below.