FAQ's: Retirement Pay for E7 with 20 Years
What is the retirement pay for an E7 with 20 years?
As of 2020 Military Retirement Calculator projections an E7 retiring with exactly 20 years of service would receive $27,827 per year. It's important to note the present value of $838,551 for a 40 year old receiving this pension indefinitely. The video will show you how to use the military retirement calculator to determine an estimate for your pay. Learn to calculate the present value of military pension here.
How much retirement do you get after 20 years in the military?
The Military Retirement Calculator will allow you to easily determine what your retirement pay for E7 with 20 years will be. They calculate that number using your High-3 average determined by number of years served starting at 50% at 20 years.
Can you live off military retirement?
Modern technology has made it easier than ever to adjust your lifestyle to an income you need. While E7 Retirement pay doesn't reach the medium income level of most American cities, it does offer steady income that frees up opportunity to start an online business or side-hustle.
Can I lose my military retirement?
Yes, the pension is tied directly to the life of the retiring service member, but no one else. This means that when the veterans dies the pension payment ends. This is why its important to implement a military retirement pension protection plan.
Are widows of veterans eligible for benefits?
It depends on if the veteran selected the survivor benefit plan (SBP). If so, the surviving spouse would receive 55% of the pension paid monthly for the remainder of his/her life. The SBP does have a 6.5% pension cost in order to participate. Therefore, a retiring E7 could expect to pay almost $80,000 of retirement pay to cover SBP costs over the 30 year enrollment period.
How Can I Avoid the Costs of the Survivor Benefit Plan?
The traditional approach to implement a survivor benefit plan alternative was to purchase a low cost term insurance policy. After years of research, we discovered that this approach can backfire because only 2-3% of term insurance policies are ever paid. The other alternative is usually whole life insurance that is sold at a high cost without enough coverage.
These are the problems that we realized no one else was solving when we created the Survivor Liberty Plan. The most modern alternative to the expensive Government Insurance programs. You can learn more about how to avoid the costs of SBP and VGLI here.
How to Calculate Retirement Pay for E7 with 20 Years:
This video is part of a larger case study that analyzes not only the retirement pay for an E7 with 20 years but also the cost of the survivor benefit plan. You can access the DFAS Military Retirement Calculator here.