Should the proposed retirement plan changes go into effect then troops who serve fewer than 20 years will be getting a better deal considering under the current system they get no retirement benefit. The proposed new model offers them a personal retirement savings of up to 6% of basic pay. For those who plan to spend 20 or more years on active duty the proposed plan seems far more complex. For those currently on active duty would you opt into the new system or will you exercise a grandfather clause?
Posted >1 y ago
It really depends on the fine print details of any new retirement system. This conversation is far from over, and I'm hopeful that, whatever the form of the final changes to the retirement system, DoD will make a detailed retirement calculator available so folks can manipulate all the variables before making a decision. I hope folks don't base decisions solely on the data presented by the Commission or by DoD, because the assumptions used and the underlying data appears to have been selectively manipulated to sell this program as a good deal for everyone. I'd expect that most folks grandfathered in, especially those with 12 or more years in or so, will opt to stick with the traditional plan. But, really, there are way too many variables to assess, and each person will come to a different conclusion based on their individual level of risk tolerance, market optimism, and financial knowledge.
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