Episode 020 - Financial Value of the BRS Pension

Operation Retirement Readiness

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: [e-mail] 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.