How much does an O5 make in retirement?
Depending on years in service the typical O5 with 20-24 years in service can expect to receive a military retirement pension between $50,000 and $65,000 annually.
We'll show you how to calculate and interpret the O5 Retirement Pay for someone with 20 years of service in this video. We also offer advice on survivor benefit plan expenditures so you can choose the most cost-effective options for your retirement pension security.You'll know what you're entitled to and how much it is when you look at the O5 Retirement Pay breakdown.
As an O5 in the military, you are entitled to a retirement pension. This pension is calculated based on your years of service, rank, and salary. If you retire with 20 years of service, your O5 retirement pay will be a percentage of your base pay times the number of years you have served.
The O5 retirement pay calculator can be found here.
Your O5 retirement pay will be reduced if you choose to enroll in the Survivor Benefit Plan (SBP). The SBP is a form of insurance, an annuity, that provides benefits to your beneficiary in the event of your death. The cost of the SBP is deducted from your retirement pay.
You can learn more about the Survivor Benefit Plan here.
To maximize your O5 Retirement Pay, you should consider whether or not you need the SBP. If you have other life insurance policies in place, you may not need the SBP and can save on your retirement pay by opting out.
You can use the O5 Retirement Pay calculator to estimate your retirement pay with and without the SBP. This will help you make an informed decision about whether or not to enroll in the SBP.
Enrolling in the SBP is a personal decision and there is no right or wrong answer. It depends on your individual circumstances and needs. Schedule a discovery call with a US VetWealth expert today.