What is better, retire from military at age 38 or retire as a civilian at age 60+?

Question

If I retire at age 38, I'll be getting roughly $3500 a month, tax free for the rest of my life if I stay military. If I get out, I have a chance of getting an almost 6 figure income, but will not have that military pension to fall back on, and will not have retirement pay until around age 65. Which would be better, stay military and get that pension, or get out and get a 6 figure income?

Answer 1

Well I am retired Army, 22 years active, and now retired from career number 2. I don't make 6 figures but never tried to. I'm doing just fine though and have no regrets at all. Its you who has to make the decision.
And by the way, who told you military retirement was tax free? They lied.

Answer 2

If you can tolerate the military, stay in. $3500 a month is more income than some families with both parents working, are making.

You also have at least 40 more years of life. Which means you can begin a second career. You did not mention getting a good job after military retirement. Many folks getting out of the military after 20+ years find good top paying jobs.

Don't forget you basic college education will be paid for. Maybe there is something you'd really like to do, but it requires a degree.

I'd say you are in a win - win situation. I know a lot of people are gonna wonder about combat and the chance of getting killed or injured. What a lot of civilians don't know is that the majority of military people are not involved in front lines conflict. The last stat I saw, there were like 6 people behind every soldier in the field. So, if you are one of the six, more reason to stay.

Answer 3

Most people, regardless of income live paycheck to paycheck.

Since leaving corporate life in 2000 I have been driving my own truck doing delivery work. I have been to both of Nancy Pelosi's SF residences, inside Gordan Getty's home and to more financial advisers homes than I can count. While they were in no danger they have neighbors that buy the house and cannot furnish it. Drive old cars. I delivered a painting to an empty house once. The owner was using a cardboard box for a table.

My POINT?

The big paychecks can go just as fast. Since you have not mentioned how far from 38 you are I will suggest you do what I did. I bank the retirement check. Live off the other incomes sources I have and look forward to very comfortable full retirement.

If you do 20 and bank just $20,000 a year while still getting a 6 figure salary from a 2nd career you can retire well before 67.

The choice is yours.

Save. Invest. Learn how the market works.

Answer 4

Either retire at 38 and you have a 22 year opportunity to retire from another career. You did not mention what MOS your in but the job market is wide open for older experienced persons. The youth of today are not as responsible as you should be after retiring and that makes you very employable. If you invest part of your monthly retirement check (401) and live to the means your used to, you will be better off than what most civilian retirements offer at age 60. If you enjoy your military job, consider staying for 30, but still create a 401 for the last 10 years. If you should enter into the Federal job market, you could actually double dip for seniority and vacation and possible retirement, depending on the agency.If you should enter into the Municipal Job market {IE City/County/State} your eligible to retire in 10 years, age 60, in most places. with fully paid benefits. If the 100,000 income is your goal it should be quite easy if you retire and pursue the second career as long as its not a greeter at Wall Mart. Also check out the tax status for what state your planning on retiring to. All states are not the same when it comes to income taxes, believe me.As for Federal taxes, ahem, I think your miss- informed. You also did not mention kids or spouse. That is all a consideration when retiring . If your MOS allows to move into a good paying, secure, civilian job market, go for it.

Answer 5

Retire from the US Military at 38 years of age, then go to work for Civil Service for 20 years and retire from that, if you want to. BTW, Military Retired Pay IS NOT TAX FREE. Whoever told you that lied to you!!
US ARMY(RETIRED) 1958 - 1979

Answer 6

There are several questions that should be considered with making a life in the military, especially if you are considering the military mainly as a retirement policy rather that as a way of life. Also, you must understand that you don't automatically retire at 20 or 30 years. You APPLY for it. Normally the army will grant it, but they do not have to. When Vietnam was cranking up I saw a 30 year vet who saw field action in WWII and Korea apply for his retirement - turned down and given orders to go to Vietnam. He felt he had served his country and that the army was sending old time vets to Nam to reduce their pension payouts and tried every way he could to get out but couldn't. The day before his plane was to leave to Nam he came down with a broken leg.

Questions:

1. Do I take orders and follow well or do I like to create my own way?

2. While travel around the world is exciting and adventursome at first, will not having a permenant home be a good thing for me and a family?

3. Am I willing to risk loosing my life or becoming disabled and having to seek outside medical care (Health care for the military is nortoriously bad)

4. Am I willing to raise a family with the above possibility?

If you go remember this:
The army will promise almost anything, education, select duty, great job, etc etc etc. Unless they are willing to put it in WRITING it is just air. I have talked with several vets who were promised much but got little. GET ALL PROMISES IN WRITING, SIGNED BY AN OFFICER WITH THE AUTHORITY TO DO SO **BEFORE** YOU SIGN ANYTHING.

Good luck!

Answer 7

I can tell you from personal experience, it is better to get the Military retirement at age 38 THEN start your second career and at age 65 you have 3 incomes (Military, Social Security and your 401K)

Answer 8

The military is not for everyone, but if it is for you, I would strongly recommend staying in. I'm retired USAF, my retirement too is not nearly $3500 a month, and it is taxed, but there are also medical benefits to be considered, as well as travel in military aircraft, and use of military facilities on the post/base you are closest to. You can always pursue a civilian career after your military service. Good Luck!

Answer 9

my husbands little three year comitment to the army , turned into a 12 year stay now. We have the safety of the income, insurance housing... you know the military wont go broke .and unless you totally scerw up the wont fire you either
My husband will retire from the army . so we are looking at another 10 years in. Since he is in recruiting we live out in the civilian world and get BAH. We move mext year and we will be buying a house and the goverment pays it(with the BAH), beat that

stay in

Answer 10

Best thing to do. Retire!
When you get out, get another job for the Fedral Government.
Retire from that in 20 years.
Pull in dual retirement.
And you still wouldnt hit 60 yet.