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Retirement Pay From the US Navy
Retirement pay is based on two key factors: how long the sailor served and his or her basic pay at the time of retirement. The Navy’s Pay and Compensation Calculator can include additional benefits that might increase one’s retirement pay. A general amount, however, can be determined with a simple calculation.
Retirees who served the Navy for 20 years can expect to receive 50 percent of their highest monthly basic pay. A retiree, therefore, can determine his or her monthly retirement compensation by dividing the highest monthly payment in half.
After 20 years of service, sailors earn an additional 2.5 percent of their basic pay. Someone who served for 21 years, therefore, would receive 52.5 percent of his or her highest basic pay.
Retirees who leave the Navy after 30 years of service automatically receive 75 percent of their basic pay. Those who retire after 40 years of service receive 100 percent of their basic pay. That means they continue to receive their full basic pay even after they stop working. That’s an excellent deal that few organizations can offer their retirees.
Medical Benefits After Retirement
Whether a sailor retires after 20 years or 40 years, he or she continues to receive healthcare coverage through a TRICARE plan. There are numerous TRICARE plans for retirees to consider. Basic plans are free. The expense is covered by the military. Plans that include additional benefits, however, often require payment from the retiree.
TRICARE covers all military personnel, regardless of which branch they serve. That means US Navy retirees receive approximately the same coverage as those who retire from the Army or Air Force.
Early Retirement Benefits
Generally, sailors must complete 20 years of service to receive any retirement benefits from the Navy. Even one day shy of that 20 year mark can disqualify a sailor from receiving any benefits.
There are, however, some early retirement plans that compensate sailors for fewer than 20 years of service. These early retirement plans are designed to reduce the size of specific armed forces groups, such as those specializing in outdated technologies. Early retirement plans are rare. Anyone pursuing a career in the Navy should expect to fulfill at least 20 years of service before receiving any retirement benefits.
Life After Retirement
Many sailors continue working after they retire from the US Navy. Some choose to remain connected to the Navy by serving in the Reserves. Others pursue government or private sector jobs. This allows them to earn income in addition to their retirement benefits, which can lead to several lucrative years after leaving the service.
Sailors can qualify for a wide range of positions outside of the military. Military personnel receive first consideration when applying for government jobs. Some retirees, therefore, might decide to work for the postal service, enter the intelligence community, or even work for local government offices.
Since many sailors learn technical skills in the Navy, they can apply their military experience to the private sector. Someone who develops an expertise in satellite communications might pursue a new career working for a communications service provider. Those who serve as mechanics in the Navy should have plenty of experience to find jobs working on cars, airplanes, boats, and other types of vehicles. They might even start their own businesses to work directly with clients.
After 20 to 40 years working in the Navy, retirees should have plenty of leadership experience that makes them excellent candidates working as managers or teachers. Retirees might need additional training or college courses to compete for these jobs, but military experience can help them stand out as exemplary candidates.
Given the excellent compensation packages offered by the US Navy, some retirees choose to quick working so they can enjoy recreation, travel, and other enjoyable activities. After all, sailors who have completed 40 years of service continue to earn their full basic income for the rest of their lives. This offers a considerable freedom that most people do not get after retiring from private sector jobs.
Compensation Packages After Retirement
To learn more about how a US Navy compensation package could benefit you in Navy retirement, contact your local recruitment office. They can give you specifics related to your unique interests and career plans.