| A military retirement calculator is a special online tool | | | | High-3 Year Calculator |
| designed to help people in the military plan for their | | | | The High-3 year average retirement system applies |
| retirement. | | | | to personnel who entered service on or after |
| Retiring military personnel are eligible to join one of | | | | September 8, 1980 and before August 1, 1986 or to |
| three retirement systems which are available to | | | | personnel who entered service on or after August 1, |
| those who have been on active duty for 20 years or | | | | 1986 and chose this plan without accepting a 'career |
| more. | | | | status bonus'. |
| It is the start date of service, when joining the | | | | The same kinds of information and variation options |
| military, which determines which retirement system | | | | used in the Final Pay calculator can be entered into |
| applies to an individual. The start date also determines | | | | this calculator |
| whether a choice can be made or not on which | | | | REDUX Calculator |
| retirement system applies. | | | | This system applies only to personnel who join the |
| The three retirement systems, all of which use a | | | | service after July 31, 1986 and offers a lump sum |
| different military retirement calculator, are:- | | | | career status bonus in exchange for a reduced |
| * Final Pay | | | | pension. |
| * High-3 Year Average | | | | Eligible personnel are able to make a choice between |
| * REDUX | | | | this system and the High-3 year system and a |
| Each military retirement calculator estimates eligible | | | | military retirement calculator is available to help make |
| pay during retirement years. Information input can be | | | | the choice between the two systems. |
| varied according to different retirement expectations | | | | Expected income payable under the Final Pay and |
| and current economic information. | | | | High 3 systems are annually increased according to |
| Final Pay Calculator | | | | the value of the consumer price index. The Redux |
| The final pay retirement system applies to personnel | | | | system is also cost of living protected but at a |
| who entered service before September 8, 1980. | | | | percentage slightly lower than that available with the |
| The calculator works by entering - expected | | | | other two systems. |
| retirement grade, years of service and age, which | | | | Each online military retirement calculator has the ability |
| then estimates retirement pay. Some variation of the | | | | to print or save information that is generated during |
| results can be achieved by applying different | | | | an online session. This is useful when reviewing the |
| economic assumptions such as inflation, annual active | | | | information at a later date. |
| duty pay raise and tax rate. | | | | |