3 ms·

Part of the “problem” is that much military pay is “hidden”. An e-6 at 12 years makes $55.6k. That is very low compared to the private sector. However, basic a

Part of the “problem” is that much military pay is “hidden”. An e-6 at 12 years makes $55.6k. That is very low compared to the private sector. However, basic allowance for housing (BAH) for an E6 with dependents is another $20-40k, so let’s call it $30k. Finally there is retirement. Retirement is harder to calculate, but traditionally if you reach 20 years then you get half your pay for the rest of your life as soon as you leave the military. An E6 @20 would get almost $30k/year, which will automatically increase with inflation. If you retire at 39 (enlisted at 19) and live to 80 you get $1.2M in inflation adjusted payments. The net present value of that is not something I know how to rigorously calculate, but $1M seems in the ball park. That’s an additional $50k/year over a 20 year career if you make it. That means if you are a 12 year E6 and plan to stay in to 20 your real total comp is closer to $130k/year, and that’s not including BAS, retention bonuses, and other compensation. And it excludes tricare and other VA benefits post retirement. The total potential compensation for military personnel is far more comparable than it looks, but is heavily weighted to non-cash compensation. * Apologies if I’m being too pedantic here to much, but I wanted to make sure people who aren’t familiar with the subject can understand what I’m getting at as well.

trod123 2y ago
You forgot to mention the fact that retired members can be recalled, that would dramatically factor into the calculations. As well as the fact that many roles are tied to holding an active clearance, and while some things would be available in those amounts, debt generally is not one of them (a big opportunity cost).
- docandrew 2y ago
  I think getting recalled as a retiree is about as likely as a regular civilian being drafted though. Both theoretical risks but about equal, for career planning purposes.
  - jki275 2y ago
    We've recalled retirees, most recently in the mid 2000s. There were a lot of them recalled in the gulf war in the 90s. So a bit more likely than the draft. I'm technically also subject to the UCMJ for the rest of my life as well.
jki275 2y ago
That retirement plan no longer exists just for the record. The "total compensation" numbers that military recruiters tout are not actually real. I know, I lived it for 23 years.
- Barracoon 2y ago
  BRS still pays at least 40% of base, plus potentially more via TSP assuming people are moving out of the G fund.
  - jki275 2y ago
    Only if you do 20 years. That's the thing people don't understand about all that -- those fake numbers are including a pension that for the majority of people who are in the military will never exist. BRS was an attempt to give those people something, so they have some TSP matching, but even that only kicks in after six years IIRC. Also DOD healthcare is worth every penny the service-member pays for it.

trod123 2y ago

You forgot to mention the fact that retired members can be recalled, that would dramatically factor into the calculations. As well as the fact that many roles are tied to holding an active clearance, and while some things would be available in those amounts, debt generally is not one of them (a big opportunity cost).

docandrew 2y ago
I think getting recalled as a retiree is about as likely as a regular civilian being drafted though. Both theoretical risks but about equal, for career planning purposes.
- jki275 2y ago
  We've recalled retirees, most recently in the mid 2000s. There were a lot of them recalled in the gulf war in the 90s. So a bit more likely than the draft. I'm technically also subject to the UCMJ for the rest of my life as well.

jki275 2y ago

That retirement plan no longer exists just for the record. The "total compensation" numbers that military recruiters tout are not actually real. I know, I lived it for 23 years.

Barracoon 2y ago
BRS still pays at least 40% of base, plus potentially more via TSP assuming people are moving out of the G fund.
- jki275 2y ago
  Only if you do 20 years. That's the thing people don't understand about all that -- those fake numbers are including a pension that for the majority of people who are in the military will never exist. BRS was an attempt to give those people something, so they have some TSP matching, but even that only kicks in after six years IIRC. Also DOD healthcare is worth every penny the service-member pays for it.