What are some good resources to find out more about the Army Reserve retirement?

SSG Private RallyPoint Member — Tue, 17 Dec 2019 16:11:04 -0500

I'm an Army reservist now but prior to I spent 6 years on active. I also recently returned from a deployment with the reserves. I know in the reserves you have to wait until you're 60 to draw the retirement pay, however, I was told that for each year spent on active status that will knock the age you can draw retirement to the left. Is this correct, and if so can you point me in the right direction for policy or regs? Thanks in advance.

Response by 2d Lt Cinthia W. made Dec 17 at 2019 4:30 PM

2d Lt Cinthia W. — Tue, 17 Dec 2019 16:30:20 -0500

It is true, heres a good article.
https://www.thebalancecareers.com/early-retirement-for-national-guard-and-reserves-3353247

Can You Take Early Retirement From the Guard or Reserves?

Members of the Guard and Reserves with active duty credits may qualify for early retirement and start receiving retired pay as early as age 50.

Response by SFC Private RallyPoint Member made Dec 17 at 2019 6:03 PM

SFC Private RallyPoint Member — Tue, 17 Dec 2019 18:03:25 -0500

No, it's for each year you were activated as a Reservist. So, your deployment with the Reserves will count for early retirement, but your six years active duty do not. The activated time is broken down into 90 day chunks. So, if your deployment was 7 months long, you could draw your retirement 6 months early.

Response by 1SG Dennis Hicks made Dec 17 at 2019 6:05 PM

1SG Dennis Hicks — Tue, 17 Dec 2019 18:05:56 -0500

As a Reservist you accumulate retirement points for Drills, AT's, ADT and correspondence courses. As a mobilized Reservist you get 1 retirement point for every day on active duty on qualified mobilizations. This is why I didn't take leave during deployments, I saved my leave and took it when I demobbed to add retirement points. Your active duty all six years is good for 265 points per year and 366 (Leap years). Deployments that qualify after Jan 2008 help you towards your early drop. I spent about 6 months before I dropped my packet checking, rechecking my points and gathering supporting documentation (DD-214's, Da5016(point Comp), DD108, DD2656. I had my packet 99% complete before I saw a local RETIREMENT SERVICES OFFICER (RSO). Upon their recommendation I submitted my Packet via E-mail, Return receipt requested snail mail and by fax 9 months prior to my calculated Early Drop date. It seems I was off 7 days in my favor and they caught it and I received my first check a week earlier than I planned. Your RSO can really answer the latest and greatest. I have one recommendation and that is once you get you 1st Check check your federal withholding, they didn't take enough out on my and I caught it late. If you are lucky you will live in a state that doesn't tax your retirement check. If you have a VA disability check, they will take it out pre tax and you will only be taxed on the rest.

Response by CAPT Kevin B. made Dec 17 at 2019 8:13 PM

CAPT Kevin B. — Tue, 17 Dec 2019 20:13:56 -0500

Good catch on the 90 day chunk thing which didn't exist when I was doing reserves. Besides the earliest date you can retire, make sure you run calculations on different scenarios. Consider the extra year or so if it puts you into the next block over on pay. Consider what the numbers will be if you stay in the retired reserves vs. straight retirement. Never resign as that sets your pay later to that date vs. the date at 60 years. Lots of assumptions out there but if you average the annual pay bumps (1.4% or a touch better) and look at when you'll really need the money, time may be your friend. You'll need more money than you'd think in retirement, especially if you want to get out of the house.