Would you have been more likely to join the military if it had a corporate 401(k) type of retirement program?

CPT Adair, I contributed 30 years of my life to the Army. I accumulated the requisite number of retirement points consummate with moving up through the ranks (I was Enlisted, Warrant, and Commissioned). My retirement income from the military is "COMFORTABLE PLUS,"...nicely augmented by investments in civilian annuities and other plans. Born in 1947, I have an advantage with Social Security income that saw this generation's age range get legislated away. I have no complaints.

Those same opportunities are available to any person (male/female) who decides to make the military their career. I decided long ago to stay away from that roller coaster ride otherwise known as the "Stock Market." Too much volatility going daily up and down for me.

The proposed 401(K) plan idea has merit "IF" it is in addition to the existing military retirement pay program. But what I read of the proposal seems shortsighted, in that its primary purpose is stated to provide "some" financial assistance if a service member leaves before completing a standard 20 or more years. Every 401(K) plan I know of (plus the one I had) does not start to really take off until about year 12 thru 15 when compound interest takes really hugh leaps.

Other investment opportunities, such as IRA (Individual Retirement Accounts), Annuities and Certificates of Deposit offer reliable rates of return over the period of a career - whether 20 or more years (both short and long term CD programs are available). RULE #1 and only = don't put all your retirement eggs in one basket. RULE #2 - always and only deal with a reputable organization - one that's been around for a long long time.

My advice to any young person joining the military...start that personal retirement plan NOW - with the first military paycheck. Speak with older service members who have been around for a while and learn from them what type of successful civil retirement opportunities they have invested in.

In short: No.
In long form: HELL NO!

Upon further reflection, TSP serves as the 401k for U.S. Government employees with less costs vs other programs of its type. So, in reality, we already have a 401k retirement plan in place. I was unaware of it until late in my career due to lack of information even though it has been around for decades.

The major problem for us regarding TSP is that DoD does not match contributions for Service Members, though GS employees receive contribution matching as mandated by Federal law, regardless of Department. As to comments made by this new Secretary, if he means to lobby for replacement of Military Retirement Pay by pushing it all off onto TSP, even with contribution matching in line with that received by GS employees, that's extremely problematic.

CPT (Join to see)
At the time I joined it made no difference to me one way or the other. But now that I have that green "R" after my name, I am glad I have the traditional retirement and not this BS 401(k) Carter and the rest of the politicians are pushing.