DoD retirement benefits for enlisted personnel have gotten complicated with all the system changes, TSP options, and benefit variations flying around. As someone who retired as an E-7 after 22 years and watched dozens of fellow NCOs navigate their retirement planning—some successfully, others making costly mistakes—I learned everything there is to know about what enlisted retirees actually receive. Today, I will share it all with you.
### Understanding Eligibility as Enlisted
Twenty years of active duty makes you eligible for immediate retirement with full benefits. It doesn’t matter if you’re an E-4 or E-9—hit 20 years, and you qualify.
Reserve and Guard enlisted follow different rules. You need 20 qualifying years based on points, not calendar years. I’ve known National Guard soldiers who served 23 years but only had 17 qualifying years because they didn’t accumulate enough points annually.
Medical retirement ignores the 20-year requirement. A medical evaluation board can retire you earlier if service-connected conditions make you unfit for continued duty. The process is lengthy and often frustrating, but it provides retirement benefits you wouldn’t otherwise receive.
### Retirement Pay Across Different Systems
Your entry date determines which retirement system covers you, and the differences affect your lifetime income substantially.
**Final Pay** (pre-September 1980 entry) calculates retirement at 2.5% of your final base pay per year of service. An E-7 retiring with 20 years receives 50% of final base pay—about $2,100 monthly based on 2025 pay scales.
**High-36** (September 1980 through December 2017) averages your highest 36 months of base pay. Most current enlisted retirees fall under this system. Same E-7 with 20 years gets 50% of their High-36 average—roughly $2,000-2,200 monthly depending on when they made E-7.
**REDUX** is the system nobody wanted. If you took the Career Status Bonus at year 15, you’re stuck with REDUX—a reduced 2% multiplier up to 20 years. Almost everyone I know who took the CSB regrets it because the reduced pension over 30+ years of retirement costs far more than the $30,000 bonus.
**Blended Retirement System** applies if you entered after January 1, 2018, or opted in from the legacy system. The pension multiplier drops to 2%, but you get TSP matching. An E-7 retiring with 20 years under BRS receives 40% of High-36—about $1,600-1,800 monthly—but should have substantial TSP savings.
That’s what makes military retirement endearing to us enlisted veterans—the pension starts immediately upon retirement, regardless of age. I retired at 44 and started collecting my pension that same month.
Probably should have led with this section, honestly.
### TSP: The Benefit Too Many Enlisted Skip
Under BRS, the government automatically contributes 1% of your base pay to TSP, then matches up to 4% of additional contributions you make. Contribute 5%, and you get 10% total going into your TSP.
Over 20 years, that matching adds up enormously. A junior enlisted soldier contributing 5% from E-3 through E-7 retirement could accumulate $150,000-250,000 in TSP, depending on investment performance.
The problem? Too many junior enlisted skip TSP contributions because money is tight. I counseled countless young soldiers who needed every dollar for rent, car payments, and family expenses. But skipping TSP under BRS leaves free money on the table.
Even under the legacy system (no matching), TSP provides tax-advantaged retirement savings. I maxed my TSP contributions for my final 10 years of service, accumulating about $180,000 by retirement. That supplements my pension nicely.
### Healthcare Through TRICARE
TRICARE coverage for retirees is genuinely exceptional compared to civilian health insurance costs.
**TRICARE Prime** costs about $300 annually for individuals, $600 for families under age 60. It’s managed care—you need referrals for specialists—but out-of-pocket costs are minimal.
**TRICARE Select** offers more provider flexibility but higher costs. You pay annual enrollment fees plus 20% cost shares on services.
I use Prime. As an E-7 retiree, the $600 annual family premium saves me roughly $12,000-15,000 compared to what civilian health insurance would cost. Over 30 years of retirement, that’s $360,000-450,000 in savings.
**TRICARE For Life** at age 65 works with Medicare to provide comprehensive coverage at almost zero out-of-pocket cost. My father-in-law is an enlisted retiree on TFL, and his annual healthcare expenses are under $200 despite multiple chronic conditions.
### SBP: Protecting Your Spouse
Survivor Benefit Plan coverage ensures your spouse continues receiving income after you die. Without SBP, your pension stops when you pass away, leaving your spouse with nothing.
SBP costs 6.5% of gross retirement pay. For an E-7 receiving $2,200 monthly, that’s about $143 deducted each month. Your spouse receives 55% of your pension—$1,210 monthly—for the rest of their life if you die first.
I elected full SBP coverage. My wife doesn’t have substantial retirement income from her own career, and that guaranteed monthly payment protects her financially. Some retirees decline SBP to maximize their monthly check, which can make sense if your spouse has their own retirement income, but for most enlisted families, SBP is critical protection.
### VA Benefits Run Parallel to DoD Retirement
VA disability compensation is separate from DoD retirement pay. You can receive both through concurrent receipt (CRDP) or Combat-Related Special Compensation (CRSC), depending on your disability rating and how you acquired the disabilities.
I have a 50% VA disability rating for knee and back issues from years of airborne operations. I receive both my full military pension and my full VA disability compensation—about $1,050 monthly from VA on top of my $2,400 retirement pension.
Before concurrent receipt was implemented, VA disability offset retirement pay dollar-for-dollar. That offset was eliminated for most retirees with 20+ years and disability ratings of 50% or higher.
GI Bill benefits remain available post-retirement if you haven’t used them. Many enlisted retirees go back to school in their 40s using GI Bill benefits, earning degrees they couldn’t complete during service.
VA home loans offer zero down payment and competitive interest rates. I used my VA loan benefit twice post-retirement, saving about $20,000 in down payments and avoiding PMI.
### Commissary and Exchange Access for Life
Shopping privileges at commissaries and exchanges save enlisted retirees substantial money. Groceries at the commissary run 20-30% cheaper than civilian supermarkets.
I save about $200 monthly on groceries shopping at the commissary. That’s $2,400 annually, $72,000 over 30 years of retirement. Exchange purchases for electronics, appliances, and clothing add more savings.
These benefits seem small compared to pension and healthcare, but they compound significantly over decades of retirement.
### Space-A Travel: Underrated Benefit
Space-Available travel lets retirees fly on military aircraft at little to no cost. It requires flexibility—you’re flying standby on military logistics flights—but it enables incredibly cheap travel.
My wife and I flew Space-A to Hawaii for under $100 round trip. Germany for similar costs. You need time flexibility and patience, but for retirees with control over their schedules, it’s a fantastic benefit.
### MWR Facilities and Programs
Access to gyms, pools, recreational facilities, and MWR programs continues post-retirement. Base gym memberships cost a fraction of civilian gym fees—often $20-30 monthly versus $80-100 civilian.
My base gym has better equipment than most civilian facilities, costs $25 monthly, and provides a place where I run into fellow retirees regularly. That connection to the military community matters more than I expected.
### Legal Assistance and Employment Help
Free legal assistance for personal legal matters—wills, powers of attorney, consumer issues—saves hundreds or thousands in attorney fees.
Employment assistance programs help with resume writing, job searches, and career transition. I used these services extensively during my retirement transition. They connected me with companies specifically hiring veterans and helped translate my military experience into civilian terms.
### Real-World Retirement Numbers for Enlisted
Let me break down actual monthly income for a typical E-7 retiring with 20 years under High-36:
– Retirement pension: $2,200
– VA disability (if 50% rated): $1,050
– Total guaranteed income: $3,250 monthly
That’s $39,000 annually, for life, inflation-adjusted. Add Social Security at 62-70 (another $1,500-2,500 monthly), and you’re looking at $50,000-70,000 in guaranteed annual income from pensions and Social Security alone.
Most enlisted retirees start second careers immediately, adding $30,000-60,000 annually from civilian employment. Combined income often exceeds what they made on active duty when you factor in pension, disability, and civilian salary.
### Planning Your Enlisted Retirement
Start planning years before retirement. Maximize your High-36 by timing promotions strategically. Contribute to TSP, especially under BRS. Document every medical condition before you leave service—VA disability claims require service connection.
Understand which retirement system you’re under and how it calculates your pension. Make informed SBP decisions based on your spouse’s situation and other income sources.
Research where you’ll retire—state taxes on military pensions vary enormously. Consider proximity to military installations for commissary, medical care, and continued connection to the military community.
Line up civilian employment or educational plans before retirement. The transition from structured military life to civilian autonomy is jarring. Having a plan helps enormously.
### The Enlisted Retirement Reality
DoD retirement benefits for enlisted personnel provide comprehensive, lifetime support—pension, healthcare, survivor protection, shopping privileges, and access to numerous VA benefits.
The pension might seem modest compared to officer retirement pay, but combined with VA disability, Social Security, and second career income, most enlisted retirees achieve comfortable financial security.
Understanding your benefits, maximizing your High-36 calculation, contributing to TSP, and planning your transition determine whether your retirement is stressful or comfortable. The system provides the framework—your decisions during service build your actual retirement.
