Summary
In this episode Amy and Mike discus the financial value of the Blended Retirement System (BRS) pension and how to determine how much more one would need to earn in a civilian job to equate to the value of the pension.
Takeaways
Military members often consider separating at various points during their career
Many don’t really know how much more they’d need to earn or how much their pension is worth
The financial value of the BRS pension can be approximated using a Single Premium Immediate Annuity (SPIA)
Individuals considering separating from the military should consider numerous factors such as taxes, healthcare benefits, and quality of life
Calculations should be done based on individual circumstances and assumptions
Chapters
00:00 Valuing the BRS Pension
02:06 Considering Factors in the Retirement Decision
03:50 Using a SPIA to Approximate the Pension Value
08:19 Quotes for the SPIA
11:27 Calculating the Amount Needed to Replace the Pension
19:30 Considering VA Disability and Other Benefits
25:16 The Need for a Retirement Calculator
Submit a question: info@operationretirementreadiness.com
Operation Retirement Readiness: www.operationretirementreadiness.com
Schedule a consultation with Mike: https://nextmissionfinancialplanning.com/contact/
Schedule a consultation with Amy: https://www.instarfp.com/contact
Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.
