Are you considering retirement from the military? If so, you’ll want to know how to calculate your high 3 military retirement. This calculation is based on your highest average salary earned over any three-year period in your career.
To start, determine your base pay for each year in your three-year period. Base pay is your basic salary before any bonus or allowances. Add up these salaries and divide by three to get your high 3 average salary.
Next, consult the Defense Finance and Accounting Service website to determine your length of service multiplier. This multiplier is based on your years of service and determines the percentage of your high 3 salary that you will receive as a retirement annuity.
Multiply your high 3 average salary by your length of service multiplier to determine your annual retirement pay. If you served for 20 years or more, your multiplier will be 2. 5%. Thus, if your high 3 average salary is $50, 000, your annual retirement pay would be $31, 250.
It’s important to note that there are other factors that can impact your military retirement pay, such as cost-of-living adjustments and disability benefits. Additionally, you may choose to opt into the Survivor Benefit Plan to ensure that your spouse or children receive a portion of your retirement pay in the event of your death.
How to calculate High 3 military retirement: This is the method to calculate your retirement income based on the highest average salary earned over any three-year period in your career. Add up your salaries for the three-year period, and then divide by three to get your high 3 average salary. After that, use the Defense Finance and Accounting Service website to determine your length of service multiplier. Multiply your high 3 average salary by your length of service multiplier, and you will find your annual retirement pay.
Calculating your high 3 military retirement can seem daunting, but by following these simple steps, you’ll have a good estimate of what to expect in retirement.