Hi, I’m a 48 year old active duty military service member

[BighousePT]

with 26 years of active duty time. I entered the service when I was 21 as a 2nd LT and am now a full COL. My plan is to stay on active duty to hit the 30 year mark and then retire early. I would be just turning 52 years old. Can I retire early?

With 30 years of active duty time I am calculating my pension to be around $9800 a month after taxes and SBP. My two kids colleges are paid for already. We have zero debt, cars are paid off. My wife and I stopped our investments this year to accelerate paying off a house that was currently appraised for $450,000. The last payment should happen in 2.5 years. We only have $340,000 saved that is tied up in Roth IRAs and the TSP. We have a $50,000 emergency fund in a generic savings account. Cars will probably need to be replaced in 5 years and roof on house probably in 12 years. HVACs were just replaced. Wife and I are in very good health. We are currently studying what a retirement budget would look like and we feel confident about a $9800 monthly pension.

My last day of work would be March of 2025 and then I don’t want to ever answer to another person again.

What do you think? Any pitfalls to this plan?

 

[Rambler]

Most people could retire on $120k per year and a paid off house, but you have only really talked about your income, but not your expenses. Now matter how good your income, if your expenses exceed your projected income, and you see no path to reduce those expenses, you’d better be prepared to work. Best course of action right now, I think, is to understand what your expenses are, and determine if any of them need to be given up, and if so, whether giving them up is more palatable than continuing to work.

 

[JDARNELL]

The only pitfall is waiting til 30 years. If you haven’t started begin working on getting all your medical challenges documented so the VA process will be easier to navigate. You could begin to really deep dive your spending to make you more comfortable and I would go ahead and go to TAP. I went two years before I wanted to retire and it helped get my house in order and focus on logistic issues. So when I went the last time I was able to focus on different topics. Check of the month club is pretty nice!

 

[NanoSour]

I'm sorry, but you got to be an O-6 and can't decide whether you can retire on $9,800/mon after tax and Tricare medical and pending SS. You're kidding me right?

 

[Bamaman]

If you are enjoying your job, follow your plan.

If things change for the worse, use that Golden Parachute and go at any time.

My next door neighbor was 30 and out as an Air Force JAG colonel. Now he's civil service attorney for the Army and has seen the office 2x in the last year. He loves working from home.

 

[HawkeyeNFO]

Can I retire early?

With 30 years of active duty time I am calculating my pension to be around $9800 a month after taxes and SBP.

BLUF: yes, you can retire early, IF your spending rate is less than your income.

That will probably include VA compensation. When I went to TAP class, the dude came in and said it was time to change the mindset, from "getting the mission accomplished, whatever it takes," to a mindset of being a "broke-ass veteran." Like someone else said, make sure everything gets documented.

To help us help you, how much do you plan on spending each month? Each year?

 

[Nick12]

Having the VA cover full medical and dental is a huge savings.

 

[street]

You should be golden. Just need to spend les then you make and all should be good.
Thank you and I wish you well.

 

[haloFIRE]

Least helpful post of the day

Least helpful post of the day:

I'm sorry, but you got to be an O-6 and can't decide whether you can retire on $9,800/mon after tax and Tricare medical and pending SS. You're kidding me right?

Doesn't sound like a responsible post from a member of this community. Wake up on the wrong side of the bed?

 

[haloFIRE]

Welcome BighousePT - happy to have you here. Most of the counsel here is well thought out; rare exception to see snark.

Key to your question lies between your current budget and your anticipated retirement budget. Refine this as best you can, and you'll have your answer. VA compensation is a wild card, so may want to plan a few different scenarios - none, full, and half are probably good to analyze.

Welcome, and thanks for serving!

 

[Dtail]

If you supply a few more facts including your expected expenses, we can run your financial situation through the retirement calculator called Firecalc which is maintained through this forum.

 

[stephenson]

A bit off topic, but I would NEVER get worked on in a VA facility - so, would plan on suitable medical insurance until 65.

And, IMO a “full” colonel is not going to be happy goofing off at age 48.

 

[Nick12]

A bit off topic, but I would NEVER get worked on in a VA facility - so, would plan on suitable medical insurance until 65.

And, IMO a “full” colonel is not going to be happy goofing off at age 48.

Know friends and family that are retired military that go to the VA. They pay next to nothing to address medical issues.

 

[stephenson]

Nonetheless, Nick ... paying next to nothing is not the best reason for using a particular supplier - especially for medical care.

 

[BighousePT]

BLUF: yes, you can retire early, IF your spending rate is less than your income.

That will probably include VA compensation. When I went to TAP class, the dude came in and said it was time to change the mindset, from "getting the mission accomplished, whatever it takes," to a mindset of being a "broke-ass veteran." Like someone else said, make sure everything gets documented.

To help us help you, how much do you plan on spending each month? Each year?

What is the best way to tackle that question? I can easily estimate recurrent monthly bills/utilities etc. but I am not sure how to factor in other expenses like traveling or hobbies. My life has basically been the military since I was 21.

 

[chris2008]

Hi,
did you already check out

https://the-military-guide.com/
Nords, the founder, also drops in here from time to time.


For ideas about spending your time after ER, I like the 'tree of life' exercise in Ernie Zelinski's books "The Joy of not Working" and "How to retiere happy, wild and free".


Enjoy the way to ER as well as a long ER!

 

[Mook1e]

A bit off topic, but I would NEVER get worked on in a VA facility - so, would plan on suitable medical insurance until 65.

And, IMO a “full” colonel is not going to be happy goofing off at age 48.

Tricare For Life doesn't require you to use a VA facility. It IS suitable medical insurance.


That said, there are excellent VA facilities, and poor ones, just like private medical facilities.

 

[DrRoy]

What is the best way to tackle that question? I can easily estimate recurrent monthly bills/utilities etc. but I am not sure how to factor in other expenses like traveling or hobbies. My life has basically been the military since I was 21.

See what your current expenses are, allow for saving to replace cars, roof, etc. What is left is what you have for travel and hobbies.

 

[stephenson]

Good point on Tricare, Mook1e, but do need to budget for it - it’s not free.

I’m gonna stick with my assessment of VA as a last resort.

 

[Gunny]

Welcome, Colonel. My only addition to what's been said is don't forget to factor in what life would look like for your spouse should they outlive you in retirement on a survivor benefit that would be half of your retirement.

I retired after 35 years in the Marines and as a Fed on less than your estimated pension. But we did have significantly more saved than you. We haven't touched savings/investments and won't fit several years. I supplement my pension with about 42 days of consulting work per year. Total...about 80k/year. It's all about knowing your spending. As a retired military officer, there would probably be lots of part time consulting opportunities for you if you so desired.

 

[friar1610]

Tricare For Life doesn't require you to use a VA facility. It IS suitable medical insurance.


That said, there are excellent VA facilities, and poor ones, just like private medical facilities.

A nitpick: a retiree is not on Tricare for Life (TFL) until he/she is on Medicare Parts A and B as TFL is a supplement to Medicare. From military retirement until Medicare eligibility, Tricare Prime, Tricare Select or Tricare Standard would be the choices. There is also a plan called Uniformed Services Family Health Plan that is geographically dependent. Of course, many retirees work 2nd careers and get their insurance from their employers with Tricare as a 2nd payer.

 

[latexman]

What is the best way to tackle that question? I can easily estimate recurrent monthly bills/utilities etc. but I am not sure how to factor in other expenses like traveling or hobbies. My life has basically been the military since I was 21.

Track your expenses now for a few years. I flagged mine as essential or discretionary and whether they will remain after retirement or not. Once you have a database of a few years, analyse it.

In God we trust, all others bring data!

 

[Mook1e]

A nitpick: a retiree is not on Tricare for Life (TFL) until he/she is on Medicare Parts A and B as TFL is a supplement to Medicare. From military retirement until Medicare eligibility, Tricare Prime, Tricare Select or Tricare Standard would be the choices. There is also a plan called Uniformed Services Family Health Plan that is geographically dependent. Of course, many retirees work 2nd careers and get their insurance from their employers with Tricare as a 2nd payer.

That's right. My apologies for using TFL in this instance.

 

[ExFlyBoy5]

A bit off topic, but I would NEVER get worked on in a VA facility - so, would plan on suitable medical insurance until 65.

And, IMO a “full” colonel is not going to be happy goofing off at age 48.

The "workable plan" is Tricare Prime (pretty much universally available for some one in OP's position) and the price cannot be beat. Yes, not "free" like the VA, but with a $600 a year premium and very reasonable cost shares, the OP's healthcare costs should stay very manageable.

I retired as an enlisted sweaty, so yes...if you manage your expenses then you most certainly can retire as an O-6.

 

[ncbill]

Looks great to me, thanks for your service!

Any tips (youngest kid AROTC, currently spending 5 weeks at Ft. Knox) to make O-6+?

All the AROTC guys I knew back in college retired at O-5.