Listen up, team. I hung up the uniform in 2015 after 27 years of service. I enjoyed my time in service to the nation; the camaraderie, the mission, the sense of purpose. I retired under the old system, the “High-3,” which gave me a pension worth 67.5% of my base pay for life. That pension gave me options; the ability to slow down, take a breath, and thoughtfully consider what I wanted my next stage in life to look like after military service.
But here’s the truth: current military members don’t get that deal anymore.
If you joined after 2018, you’re in the Blended Retirement System (BRS). It’s a good system, but it’s not the old one. Your pension is smaller. It’s just 40% of base pay after 20 years instead of 50% (a paycheck 20% lower than the legacy system). The government made that trade-off because they’re now helping you build a retirement nest egg through the TSP with matching contributions. They have shifted the responsibility of earning the missing 20% of your retirement pay to you, the military member.
That means your financial future isn’t just about showing up and serving your 20. It’s about how much you save. And I’m here to tell you, saving 5% just to get the match isn’t enough. Not by a long shot.
The Game Has Changed — Play It Like a Pro
Think of your retirement plan like a championship game. The government gives you the field, the ball, and even a few free points (that 1% automatic TSP contribution and the match up to 5%). But they’re not spotting you a 20-point lead like they did for us under the old system.
If you want to win, you’ve got to play offense. That means cranking your savings rate up; way up.
I tell young troops this all the time: make 30% your target.
If you can’t do 30% right now, no problem, start where you can, but here’s the key: devote every raise, every promotion, every extra dollar of BAH or BAS to your TSP until you hit 30%. It won’t feel like a cut, because you’re saving the money before you ever see it.
The Deployment Advantage
When you’re deployed, you have the perfect opportunity to score big:
- Your expenses are low; housing, food, even taxes are mostly covered.
- Your pay is higher and often tax-free.
- You’re too busy to spend money anyway.
That’s why I tell my guys: put 100% of your deployment bonus pay, special pays, and hostile fire pay straight into your TSP. Pretend it never hit your checking account. Six months or a year later, you come home with a massive boost to your retirement savings and no debt hangover.
Don’t Blow the Bonus
At 8–12 years, you’re going to get offered continuation pay, a lump sum equal to a few months’ base pay. Most people see that as “free money” and go straight to the car dealership. Don’t do it. That’s a rookie move.
Instead, use that bonus to max out your TSP contributions for the year. Turn that one-time windfall into decades of growth. Your future self will thank you.
Side-by-Side: The 5% Saver vs. the 30% Saver
Let’s put some numbers to this. Assume a young E-5 makes $40,000 in base pay, gets 3% raises each year, invests in a moderate-risk TSP portfolio, and serves for 20 years.
| Year | 5% Saver Balance | 30% Saver Balance |
|---|---|---|
| 5 | $23,023 | $86,978 |
| 10 | $59,269 | $226,934 |
| 15 | $114,584 | $440,374 |
| 20 | $199,477 | $757,316 |
And here’s what that looks like visually year after year:
(Chart shows the 30% saver’s balance growing exponentially compared to the 5% saver, ending almost four times higher after 20 years, even with the same government match.)
Want to see your timeline? Use Coach Holdren’s Simple Economic Model Calculator and plug in your numbers. Link: S.E.M. Calculator – Simpli-FI.money
This Is Your Future — Own It
Look, I get it. Saving 30% of your pay sounds hard. When I was a young lieutenant, I wasn’t exactly rolling in cash either. But here’s the truth: you’re going to spend that money on something, probably a new truck, or a bunch of Amazon orders you won’t even remember a year from now.
Or you can put it toward the one thing that will absolutely change your life: financial freedom.
When you retire, whether after 8 years, 20 years, or 30 years, you want options. You want to be able to walk away from a bad job offer, buy a house without sweating the mortgage, or take your kids to Disney World without putting it on a credit card.
You get that freedom by saving like crazy now.
Final Whistle
The BRS isn’t worse, it’s just different. It puts the ball in your court. The pension alone won’t cut it. You’ve got to save, and save big.
So start today:
- Set your TSP contribution to whatever you can afford now, then dedicate every raise and promotion to bumping that number higher until you hit 30%.
- Max it out when you get continuation pay.
- Go all-in during deployments.
Do this, and you won’t just retire; you’ll retire strong, with the real potential of a seven-figure nest egg, a pension, and the ability to write your own orders for the rest of your life.