I’m just curious, so with the new blended system (as compared to legacy) am I just relegated to a lower pension amount between my retirement age and my withdrawal age for the TSP?
For example legacy was (I think?) 50% of base pay for high three, and the TSP is 40% of high three.
So am I just SOL for that ten percent between army retirement age and the 401k withdrawal age?
Posted by AdagioClean
3 Comments
Nah. New system pension = 2.5% of your base pay for each year of service. So if you want 50% pension instead of 40%, just stay an extra 4 years, and then retire after 24 years instead of 20.
Assuming you serve 20 years, yes, you will receive 40% of your high three base pay.
You receive a lower annual annunity if served 20+ years (2% per year served vs. 2.5%)
But you also receive a 5% match after 2 years into a retirement account. Something like 86% of folks don’t make it to 20 and keeps them from “leaving with nothing”