Calculating your high 3 military retirement can be daunting, but it is essential to know how much retirement income you could receive once you decide to retire. Your high 3 retirement pay is calculated based on the average of the highest three years of basic pay in your military service.
To calculate your high 3 retirement pay, start by identifying the pay amount for each of your highest three years of basic pay. Add the three amounts together, then divide the total by three. This will give you your average basic pay for the high 3 years.
Once you have your average basic pay for the high 3 years, you can use a percentage based on your length of service to determine your retirement pay. If you retire before completing 20 years of service, you will receive 50% of your average basic pay for the high 3 years. If you retire after completing 20 years of service, your retirement pay is calculated by multiplying your average basic pay for the high 3 years by a percentage based on your years of service.
It’s important to note that military retirement pay is subject to taxes. However, some states do not tax military retirement pay. Be sure to check with your state tax department for further information.
How to calculate high 3 military retirement can seem tricky, but it’s important to figure out to know how much retirement income you’ll receive. To find your high 3 retirement pay, you need to average the highest three years of basic pay during your military service.
Calculating your high 3 military retirement requires determining your average basic pay for the highest three years of service and understanding the percentage based on your years of service. By doing so, you can properly plan for your retirement income.