Military Retirement Pay: High-3 vs. BRS
How retired pay is calculated, what the Blended Retirement System adds, and what a 20-year retirement is worth using the 2026 pay table.
Last reviewed on October 1, 2026Military retired pay is a lifetime, inflation-adjusted pension for members who complete at least 20 years of service. It is calculated from basic pay — the same pay chart on this site — so every raise and promotion late in a career increases it.
The Formula
Retired pay = years of service × multiplier × High-36. The High-36 is the average of your highest 36 months of basic pay, almost always your final three years.
- High-3 (legacy) — 2.5% per year. 20 years = 50% of High-36; 30 years = 75%.
- Blended Retirement System (BRS) — 2.0% per year. 20 years = 40% of High-36, combined with government Thrift Savings Plan (TSP) contributions and a mid-career continuation pay bonus.
What BRS Adds
- TSP automatic contribution — 1% of basic pay after 60 days of service, vested after 2 years.
- TSP matching — up to an additional 4% once you reach 2 years of service, for a total of up to 5%.
- Continuation pay — a one-time cash bonus, typically offered between 8 and 12 years of service in exchange for an additional service commitment. Active-duty minimum is 2.5 times monthly basic pay.
- Lump-sum option — at retirement you may take 25% or 50% of discounted retired pay up front, with reduced monthly pay until full Social Security retirement age.
Unlike the pension, the TSP portion belongs to the member even without reaching 20 years. That is the main reason BRS was created: most service members leave before 20 years and previously left with no retirement benefit.
Example: Retiring at 20 Years (2026 Pay Table)
Illustrative only: the final 36 months before 20 years are 12 months at the over-16 rate and 24 months at the over-18 rate, using 2026 rates throughout. Real High-36 figures include future raises and time in grade.
| Example | High-36 average | High-3 (50%) | BRS (40%) |
|---|---|---|---|
| E-7 at 20 years | $6,118.50 | $3,059.25 | $2,447.40 |
| E-8 at 20 years | $6,690.20 | $3,345.10 | $2,676.08 |
| W-3 at 20 years | $7,988.90 | $3,994.45 | $3,195.56 |
| O-4 at 20 years | $10,473.80 | $5,236.90 | $4,189.52 |
| O-5 at 20 years | $11,606.30 | $5,803.15 | $4,642.52 |
Cost-of-Living Adjustments
Retired pay is adjusted each December by the Consumer Price Index (CPI-W), protecting it from inflation for life. Retired pay is taxable federal income, though many states exempt it. Retirees may also qualify for VA disability compensation, which is tax-free and may be paid concurrently with retired pay for ratings of 50% or more.
Reserve Component Retirement
Reservists and Guard members earn retirement points instead of years of active service. A "good year" requires at least 50 points; 20 good years qualify for retired pay, usually starting at age 60. The calculation uses total points ÷ 360 as the years-of-service figure. See drill pay for how points and pay accrue.
For an official estimate, use the DoD retirement calculators at militarypay.defense.gov.
Retirement Pay FAQ
Retired pay = years of service × a multiplier × your High-36 (the average of your highest 36 months of basic pay). The multiplier is 2.5% per year under the legacy High-3 system and 2.0% per year under the Blended Retirement System.
Everyone who entered service on or after January 1, 2018 is automatically in BRS. Members who were serving at the end of 2017 with fewer than 12 years of service (or under 4,320 retirement points for Reservists) could opt in during 2018.
An automatic 1% of basic pay after 60 days of service, plus matching of up to 4% more once you reach 2 years of service — a total of up to 5% if you contribute at least 5% yourself.
Reserve and Guard retirees normally begin receiving retired pay at age 60. Qualifying active-duty service after January 28, 2008 can lower that age by 3 months for every 90 days served in a fiscal year, to as early as age 50.