Wed. Apr 17th, 2024

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How to Calculate Your Military Retirement Pay

If you are leaving the military after serving for many years, you may be wondering what your retirement pay will be. Military retirement pay is based on a formula that takes into account a number of factors, including your rank, years of service, and the “high 3” average of your basic pay. In this article, we will explain how to calculate high 3 military retirement so that you can get a good estimate of your future earnings.

First, let’s define what high 3 means. High 3 is your highest 36 months of basic pay divided by 36. Basic pay is your base salary and does not include any allowances or bonuses.

To calculate your high 3 retirement pay, you need to follow these steps:

  1. Determine your base pay for your highest 36 months of service.
  2. Add up these salaries and divide them by 36 to get your average monthly high 3 pay.
  3. Multiply your high 3 average monthly pay by the number of years and months of service. This number is capped at 75% of your high 3 average.

For example, if your highest 36 months of basic pay total $100, 000 and you served for 20 years and 6 months, your high 3 retirement pay would be $50, 625 per year $4, 218. 75 per month because 20 years and 6 months is 246 months, which is 82% of 300 months. 75% of $4, 218. 75 is $3, 164. 06, which is the maximum amount you would receive.

Calculating your high 3 military retirement is a bit complicated, but it is an important part of