Financial Tip – Military’s new Blended Retirement System: Not perfect, but what is?

By Millennial Financial Planning LLC     (Veteran owned company)

Starting January 1 2018, the military will see, perhaps it’s first ever, major overall of its retirement system. For decades, a solid pension plan and medical insurance were the cornerstone of what veterans received for a qualifying retirement. For new service members joining after January 1st, and those who can opt in, that is all going to change, but it’s not all bad. The new plan is coined the “Blended Retirement System” and below you’ll understand why. Keep reading for highlights on the new plan and what it could mean for you.

The government did good?

First, we want to give credit where credit is due. It may shock a lot of people to hear that the government did a good job, but they did, at least on the part of pushing the word out about these changes and offering resources to educate the military on it. Whether the new plan is “good” or not is a matter of opinion.
Feel free to post your comments or questions on our social media pages!
The military overall has done their people a solid by making several websites, seminars, and calculators available for learning about the new retirement. Rob actually had a mandatory, two-hour class on it through his unit. Such classes are being integrated as part of mandatory annual briefs.

So what’s new?

The major change with the new plan is the scaled back pension. We won’t bore you with the math problem that is the pension calculation, but what you need to know is that the new pension is figured on a 2% rate rather than 2.5% with the old plan. The second big change is a matching program for the Thrift Savings Plan (TSP). The TSP has been around for a while, but the military was never given any type of matching incentive like federal employees have enjoyed. Going forward, military guys and girls in the BRS will get a 1% automatic contribution from the government and up to a 4% match based on what you put in. And you should put in! For those who opt-in, the match starts immediately, everyone new will have to wait two years. Having a pension, plus a 401k style contribution plan, “blends” two different types of retirement systems….see what we did there?

Pot Sweeteners

Two other new features for the BRS are a continuation pay bonus and a lump sum pension payout. The continuation pay may be offered between 8 and 12 years of service. The payout is anywhere between 2.5 times to 13 times monthly basic pay for Active Duty, and ½ times to 6 times monthly basic pay for Reservists/National Guard. This is a retention tool, so your payout will depend on time in service, occupation, and force need….we’ll let you roll those dice.

The lump sum option will let you choose a 25% or 50% payout of what the government will calculate your pension to be worth. Now, that “worth” is based on the present value of your pension, meaning no inflation or cost of living increases will be assumed. If you choose to do this, you’ll get a big check, but your monthly pension checks will be discounted for it until age 67. Then your checks will go up as if you never took the lump sum.

Making sense of it

With this BRS having a couple moving pieces, it may be all too easy to be unsure of exactly what to do. Our best advice is to take advantage of the available calculators. Chances are, if you are more tenured in your service (12 or more years in), you may be better off with the old, “legacy” plan. The reason being that your use of the TSP, even with a government match, and a realistic rate of return, may not make up the gap between the new 2% and old 2.5% pension rate. That’s not to say the continuation bonus or lump sum option may be attractive depending on your plans for the money. For the newbies, using the TSP is a no-brainer, otherwise you are leaving free money on the table.

You’ll want to get the biggest bang for your buck, and the best way to do that is put in 5% of your own money into the TSP so you can get the full match.
We are big believers in finishing strong, and with that, we want to go out with something we know you’ll remember….TAXES! Every piece of the BRS is subject to taxes. You can elect (not required) for your continuation pay to go straight into your TSP, but if you are only using the Roth TSP, your money will be taxed prior to getting there. If you have the Traditional TSP, the taxes are deferred like your normal contributions. That lump sum option, yep, subject to taxes too (insert sad face emoji here). That tax portion could be major depending on the size of your payout. Plus remember, you’ll have to budget for having smaller monthly pension checks for a while.

More info on the BRS and calculators can be found at:

Time to start plannin’,

Millennial Financial Planning






DISCLOSURE: The ideas, thoughts, and opinions in this article are our own, except where sources are specifically cited, and are property of Millennial Financial Planning. This article is intended for informational and entertainment purposes only, and does not serve as direct financial advice, nor is it an endorsement for or against the Blended Retirement System. Speak with your financial professional for direct advice and guidance. All investments contain risk and the potential loss of principal.



116 Replies to “Financial Tip – Military’s new Blended Retirement System: Not perfect, but what is?”

  1. Pingback: essayforme
  2. Pingback: writeessay
  3. Pingback: Cialis prices
  4. Pingback: Cheap viagra
  5. Pingback: Viagra tablets
  6. Pingback: Cialis generic
  7. Pingback: Cialis generic
  8. Pingback: Viagra tablets
  9. Pingback: Canadian cialis
  10. Pingback:
  11. I do enjoy the way you have framed this particular concern and it does supply me a lot of fodder for thought. Nonetheless, from what I have witnessed, I just simply hope when the feed-back pile on that individuals stay on issue and in no way start on a tirade associated with the news of the day. Yet, thank you for this outstanding point and while I can not necessarily concur with the idea in totality, I respect your point of view.

  12. Simply desire to say your article is as astonishing. The clarity for your post is just spectacular and i can suppose you’re an expert in this subject. Fine with your permission allow me to clutch your RSS feed to stay up to date with drawing close post. Thank you 1,000,000 and please keep up the enjoyable work.

  13. Pingback: read article
  14. We’re a group of volunteers and starting a new scheme in our community. Your web site provided us with valuable info to work on. You have done an impressive job and our entire community will be thankful to you.

  15. A formidable share, I simply given this onto a colleague who was doing slightly analysis on this. And he in reality bought me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love reading more on this topic. If possible, as you change into experience, would you thoughts updating your weblog with extra details? It is extremely useful for me. Big thumb up for this weblog submit!

  16. Virtually all of whatever you mention happens to be astonishingly appropriate and that makes me wonder why I had not looked at this with this light previously. This particular piece really did turn the light on for me personally as far as this issue goes. Nonetheless at this time there is actually 1 factor I am not necessarily too comfy with and whilst I try to reconcile that with the central idea of the position, allow me observe exactly what the rest of your subscribers have to point out.Nicely done.

  17. Hi! This is kind of off topic but I need some advice from an established blog. Is it tough to set up your own blog? I’m not very techincal but I can figure things out pretty fast. I’m thinking about setting up my own but I’m not sure where to start. Do you have any points or suggestions? With thanks

  18. Pingback: 421mzQUayz2
  19. Pingback:
  20. Pingback: read completely
  21. Pingback: article source
  22. Pingback:
  23. Pingback: find out more here
  24. Pingback:
  25. Pingback: follow this link
  26. Pingback:
  27. Pingback: click here
  28. Pingback: continued here
  29. Pingback:
  30. Pingback: address
  31. Pingback: more on the page
  32. Hi, i think that i saw you visited my blog thus i came to “return the
    favor”.I am attempting to find things to enhance my website!I suppose
    its ok to use a few of your ideas!!

  33. I am really impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you modify it yourself? Anyway keep up the nice quality writing, it is rare to see a great blog like this one nowadays..

  34. I blog frequently and I really thank you for your content.
    This great article has truly peaked my interest. I will book mark your blog and
    keep checking for new information about once a week. I subscribed to your Feed as

  35. We are a group of volunteers and opening a new scheme in our community.
    Your website offered us with valuable information to work on. You have done an impressive job and our whole community will be grateful to you.

  36. Excellent blog here! Also your site loads up fast! What host are you
    using? Can I get your affiliate link to your host?
    I wish my site loaded up as fast as yours lol

  37. Heya! I just wanted to ask if you ever have any issues with hackers?
    My last blog (wordpress) was hacked and I ended up losing several weeks of
    hard work due to no backup. Do you have any methods to prevent hackers?

  38. Howdy! This post couldn’t be written any better! Reading this post reminds me of
    my good old room mate! He always kept chatting about this.
    I will forward this write-up to him. Fairly certain he
    will have a good read. Many thanks for sharing!

  39. I get pleasure from, lead to I found just what I was looking
    for. You have ended my 4 day long hunt! God Bless you man. Have a great day.

  40. Hey there! Do you use Twitter? I’d like to follow you if that would be ok.
    I’m absolutely enjoying your blog and look forward to new updates.

  41. Hello there I am so excited I found your web site, I really found you by mistake,
    while I was researching on Yahoo for something else, Anyways
    I am here now and would just like to say thanks for a remarkable post and a
    all round entertaining blog (I also love the theme/design), I don’t have
    time to read through it all at the minute but I have saved
    it and also included your RSS feeds, so when I have time I will be back to read a great deal more,
    Please do keep up the fantastic jo.

  42. I’m no longer positive where you are getting your information, but good topic.

    I must spend a while finding out more or
    working out more. Thanks for fantastic information I
    used to be looking for this information for my mission.

  43. You actually make it seem so easy with your presentation but I find
    this matter to be really something that I think I would never
    understand. It seems too complex and extremely broad for me.
    I am looking forward for your next post, I will try to get the
    hang of it!

  44. I do believe all of the ideas you’ve presented to your
    post. They’re really convincing and will certainly work.
    Still, the posts are very brief for newbies. Could you
    please lengthen them a bit from subsequent time? Thank you for
    the post.

  45. I used to be recommended this blog via my cousin. I’m no longer sure
    whether or not this publish is written through him as no one else know such special about my problem.
    You are incredible! Thank you!

  46. Awesome issues here. I am very happy to look your article.
    Thanks so much and I’m having a look forward to contact
    you. Will you kindly drop me a e-mail?

  47. Please let me know if you’re looking for a article author for
    your site. You have some really great articles and I believe
    I would be a good asset. If you ever want to take some of the
    load off, I’d love to write some material for your blog in exchange
    for a link back to mine. Please blast me an e-mail if interested.

  48. I’ve been browsing on-line more than 3 hours these days, but I never discovered any fascinating article like yours.
    It’s lovely worth sufficient for me. In my view, if all webmasters and bloggers
    made good content material as you probably did, the web can be much
    more helpful than ever before.

  49. You can certainly see your enthusiasm within the article you write.
    The world hopes for even more passionate writers such as you who
    are not afraid to mention how they believe.
    At all times follow your heart.

  50. I loved as much as you’ll receive carried out right here.
    The sketch is attractive, your authored material stylish.

    nonetheless, you command get got an impatience over that you wish
    be delivering the following. unwell unquestionably come more formerly again since exactly the same nearly
    very often inside case you shield this increase.

  51. Thanks for finally talking about >Financial Tip –
    Militarys new Blended Retirement System: Not perfect, but what is?
    – Your Journey. Our Experience. <Liked it!

  52. I enjoy what you guys tend to be up too. This kind of clever work and reporting!
    Keep up the superb works guys I’ve incorporated you guys to my own blogroll.

  53. I am really impressed with your writing skills and also with the layout on your blog.
    Is this a paid theme or did you customize it yourself?

    Either way keep up the nice quality writing, it’s rare to see a great blog like this one nowadays.

  54. Thanks for every other informative website. Where else may
    just I get that type of information written in such an ideal
    method? I have a undertaking that I am just now
    running on, and I have been on the look out for
    such information.

  55. Do you mind if I quote a few of your articles as long
    as I provide credit and sources back to your site?
    My blog site is in the very same niche as yours and my
    users would truly benefit from some of the information you provide
    here. Please let me know if this okay with you. Regards!

  56. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point.

    You obviously know what youre talking about, why waste your intelligence on just posting videos to your weblog when you could be giving us something enlightening to read?

  57. I have been browsing online more than three hours nowadays, but
    I never found any interesting article like yours.
    It’s beautiful worth sufficient for me. Personally, if all
    web owners and bloggers made good content material as you probably did, the
    web shall be much more useful than ever before.

  58. Hmm is anyone else encountering problems with the images on this blog loading?
    I’m trying to determine if its a problem on my end or if it’s
    the blog. Any responses would be greatly appreciated.

Leave a Reply

Your email address will not be published.