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The current retirement method enables us to retire at 20 years, and is named a defined benefit retirement method. If we serve significantly less than 20 years, we get practically nothing. The value of the current retirement is abstract. It is calculated at 50% of base pay, with an extra two.5% a year, up to 75%. We can also contribute to the Thrift Savings Strategy (TSP) up to the maximum contribution limit ($17,500 in 2016). Verify out my blog post right here where I clarify how a lot a military retirement is worth. I evaluate it to a 30-year bond. Right now, the interest rates (and inflation) are low, generating the present value of a military retirement valuable. When inflation rises, our retirement loses worth, or in economic terms, we are exposed to inflation threat. The main cause for a alter is to escape the all or nothing” …