Army Retirement Guide 2026: High-3 vs. BRS & Planning

*Note: AKO.org is an independent reference site and is not the official TRICARE program or the Department of Defense. For official policy and personal pay calculations, visit TRICARE.mil and DFAS.mil.*

## Quick answer Army retirement pay is generally calculated using one of two main systems: the **Blended Retirement System (BRS)** or **High-3**. Which one you receive depends on when you entered service, your election during the 2018 opt-in window, and completing at least 20 years of qualifying service (or reaching 60 years old for Reservists).

In detail

The Army currently manages three primary retirement pay structures. Understanding which one applies to you is the first step in financial planning for your post-Army life.

### 1. The High-3 (Legacy) System This applies to those who entered service between September 8, 1980, and December 31, 2017, and did not opt into BRS. * **The Multiplier:** 2.5% per year of service. * **The Calculation:** Your "High-3" is the average of your highest 36 months of basic pay. * **Example:** A Soldier retiring at 20 years gets 50% of their High-3 average (20 years x 2.5%). At 30 years, they get 75%.

### 2. The Blended Retirement System (BRS) This applies to all Soldiers who entered service on or after January 1, 2018, and those who opted in during 2018. * **The Multiplier:** 2.0% per year of service. * **The Calculation:** 2.0% x years of service x High-3 average. * **The "Blend":** Includes a defined benefit (the pension) and a defined contribution (Thrift Savings Plan). The Army matches up to 5% of your TSP contributions. * **Continuation Pay:** A mid-career bonus (usually at 12 years) in exchange for additional service.

### 3. Final Pay System This is rare in 2026. It applies only to those who entered service before September 8, 1980. The pension is based on your final basic pay rate rather than an average of three years.

Comparison Table: 20-Year Retirement (2026 Perspective)

| Feature | High-3 (Legacy) | Blended Retirement System (BRS) | | :--- | :--- | :--- | | **Pension Multiplier** | 50% after 20 years | 40% after 20 years | | **Government TSP Match** | No | Yes (Up to 5%) | | **Lump Sum Option** | No | Yes (25% or 50% at retirement) | | **Continuation Pay** | No | Yes (Between 8–12 years) | | **Eligibility** | Entered before 2018 | Entered 2018+ (or opted in) |

### Reserve and National Guard: Retirement Points For "Part-Time" Soldiers, retirement isn't based strictly on calendar years but on **Retirement Points**. You must accrue 20 "Good Years" (at least 50 points per year). * **Calculation:** Total points / 360 = "Equivalent Years" of service. * **Timing:** Pay typically begins at age 60, though certain deployments can reduce this age (Reduced Age Retirement).

### Healthcare in Retirement Upon retirement, you transition from TRICARE Prime (Active Duty) to: * **TRICARE Select or Prime:** For retirees under age 65. * **TRICARE For Life:** For retirees age 65+ (requires Medicare Part A and B). * **2026 Enrollment Fees:** For a "Group A" retiree (entered before 2018), 2026 TRICARE Select enrollment fees are approximately $190/individual or $380/family annually (Verify current rates at TRICARE.mil).

## Who this applies to * **Active Duty Soldiers:** Retiring after 20+ years of active federal service. * **National Guard & Reserve:** Retiring after 20 "Good Years" of service. * **Medical Retirees:** Soldiers found unfit for duty with a disability rating of 30% or higher. * **Military Spouses:** Affected by the Survivor Benefit Plan (SBP) decisions made at the time of retirement.

Common scenarios

**Scenario A: The High-3 Careerist** SFC Miller retires in 2026 with 20 years of active service. He stayed in the Legacy High-3 system. His average top 36 months of basic pay was $5,800. * **Calculation:** 50% of $5,800. * **Monthly Pension:** He receives **$2,900/month** for life, plus annual Cost of Living Adjustments (COLA).

**Scenario B: The BRS Officer** MAJ Rodriguez retires in 2026 (having opted into BRS in 2018) with 20 years of service. Her High-3 average is $8,500. * **Calculation:** 40% of $8,500. * **Monthly Pension:** She receives **$3,400/month**. * **Extra Assets:** She also leaves with a TSP balance worth $300,000 due to the 5% government match and her own 10% contributions over two decades.

## Related terms * **COLA:** Cost of Living Adjustment; an annual increase in retirement pay based on inflation. * **SBP:** Survivor Benefit Plan; an insurance-like program that provides a portion of your pension to your beneficiary after you die. * **DFAS:** Defense Finance and Accounting Service; the agency that actually cuts the retirement checks. * **TSP:** Thrift Savings Plan; the government's version of a 401(k). * **CRDP:** Concurrent Retirement and Disability Pay; allows retirees to receive both full military retired pay and VA disability compensation.

## Sources * **DFAS - Military Retirement Pay:** https://www.dfas.mil/retiredmilitary/ * **TRICARE - Retiring:** https://www.tricare.mil/LifeEvents/Retiring * **Department of Defense (DoD) BRS Portal:** https://militarypay.defense.gov/BlendedRetirement/ * **Army G-1 Retirement Services:** https://soldierforlife.army.mil/retirement