What is my best retirement option after a mix of years in the Guard, Reserves, and active duty?

SGT Private RallyPoint Member — Sun, 30 Jan 2022 08:35:19 -0500

I've done 6 years guard, 3 reserve and currently 3 active duty. Currently 12 time in service. I would like to know if I have to do 8 years to retire or 15 because my active duty time is just 5 years. What would be my best option?

Response by SGM Private RallyPoint Member made Jan 30 at 2022 4:15 PM

SGM Private RallyPoint Member — Sun, 30 Jan 2022 16:15:22 -0500

If you want a retired pay from the military, there are two options:

1. Active Duty retirement: requires at least 20 years active duty.

2.Nonregular retirement (the kind you can qualify for from the reserves with at least 20 years total service, active and reserve combined, and collect at age 60).

Your "best retirement option" really depends on your current age, plan for post-military career, part of the country where you will live, etc.

Response by COL Vincent Stoneking made Jan 30 at 2022 7:14 PM

COL Vincent Stoneking — Sun, 30 Jan 2022 19:14:32 -0500

Active Retirement: Assuming that you have a total of 5 years of equivalent Active Federal Service, including time from the guard and reserve, then you would need 15 more years of AFS to qualify for an active component retirement.

Reserve Retirement: You have 12 years time in service. Assuming all are good years, you would qualify for the retired reserve in 8 more years and be able to become a "gray area" retiree. However, you would not be able to COLLECT a retirement until you turn 60 (less time deployed since 2008, yada, yada).

Response by SFC Private RallyPoint Member made Jan 30 at 2022 7:28 PM

SFC Private RallyPoint Member — Sun, 30 Jan 2022 19:28:32 -0500

You have eight years to qualify for a Reserve 20 year letter, and another 15 years for Active Duty Retirement. You won't draw a Reserve Retirement till you are 60 years old. Use that to figure out what is best for you.

Response by LTC Private RallyPoint Member made Jan 30 at 2022 8:43 PM

LTC Private RallyPoint Member — Sun, 30 Jan 2022 20:43:36 -0500

Standard answer, it depends.

It depends on your age as well as what you would do as your main job while you drill.
I recommend you sign up for a reserve component retirement brief. Government civilians can buy back their active time and count it to their federal retirement while also counting that time to their reserve retirement.

Assuming you won't be in your 50s when you become eligible for retirement, active retirement will always have a better immediate benefit.

Stay active but if you want to get out, go to the reserve component to complete that retirement.

There's a decent retirement calculator at my army benefits.gov (or something similar)

Response by CPT Private RallyPoint Member made Jan 30 at 2022 9:18 PM

CPT Private RallyPoint Member — Sun, 30 Jan 2022 21:18:37 -0500

As well, are you on the new retirement program or the old one?

I've seen folks on the old one game the system, exit Active, then enter Reserve long enough just to convert their retirement cash flows into the Reserve point calculation. Maybe even pick up a promotion or two to up that pay grade calculation. But it depends on their circumstances.

Whatever you do, keep in mind the lost opportunity costs if you walk away with nothing.

There is also the cost of going reserve and getting a larger civilian pay check and being able to put more toward retirement that an Active pathway would give you, but don't walk away from what you have vested so far that can be kept in the reserves.

Remember, the reserve calculation is based on points, and one can rack up easy points here and there submitting DA1380's for on-line classes with the right chain of command and right selection of approved classes.

2020 was my best Tax year reported by the USAR (while in TPU status) and I nearly didn't step a foot in a military facility the whole year. I just racked up points every time the window opened. 15-20 extra point a year ends up being nearly an entire year of active duty added to your calculation.

The best pathway toward racking up points is sneaking in your PME while still going to AT. They come from different funding sources, and nearly both will never get denied.

Response by CPT Lawrence Cable made Jan 31 at 2022 6:01 AM

CPT Lawrence Cable — Mon, 31 Jan 2022 06:01:48 -0500

You could ETS and go back to the Guard or Reserve and get your 20 year letter at the end of 20 years TIS if all 9 of your Reserve Years are good years (over 50 points). If you go that path, don't submit your Retirement Paperwork before you have that 20 year letter in your hand. Then you want to transfer to the Retired Reserve until you are age 60 and eligible to pull you retirement. Retired Reserve allows you to still add to your TIS for pay and there are still some benefits included, I believe you can still get Tri Care for Reservist until you retire.
Active Duty Retirement starts immediately and it's certainly a better choice financially if you like what you are doing. I will point out that you can count all your active duty time in the Guard or Reserve toward your Active Duty Retirement. That included IET, AT, any Active Duty Schools and any Federal Deployments. I mention that because these days, a 9 year stint in the Guard and Reserve usually gets you a couple of long Deployments and it can add up pretty quick.