Choosing a Retirement Plan: What Most Service Members Get Wrong
Retirement plan selection has gotten complicated with all the BRS opt-in decisions, High-3 comparisons, and financial projections flying around. As someone who helped hundreds of service members analyze their retirement options during the BRS transition, I learned everything there is to know about picking the right plan. Today, I will share it all with you.
High-3 vs. BRS
Probably should have led with this section, honestly. If you joined before 2018, you were under High-3 by default. During the 2018 opt-in window, service members with less than 12 years could switch to BRS. High-3 gives you 2.5% per year (50% at 20 years), while BRS gives 2.0% (40% at 20 years) plus TSP matching.
What Most People Got Wrong
Many service members focused only on the pension multiplier and missed the TSP matching. If you contribute 5% and get 5% matching for 20 years, that TSP balance can easily make up for the lower pension multiplier. Others assumed they’d serve exactly 20 years and retire—but life happens. That’s what makes BRS endearing to us younger troops—you get something even if you leave at 10 or 15 years, while High-3 gives you zero unless you hit 20.
The Right Choice Depends on Your Situation
If you’re certain you’ll serve 20+ years, High-3 probably pays more. If there’s any chance you’ll separate before 20, BRS is better because you keep the TSP matching. Run the calculators, talk to financial counselors, and make an informed decision based on your specific career plans and risk tolerance.
