Military benefits / Retirement & Savings

Military Retirement Pay and the Survivor Benefit Plan

Members who serve 20 or more years, or who are medically retired. The Survivor Benefit Plan is offered to retiring members to protect a spouse, children or another eligible beneficiary.

A 20-year military career pays a monthly pension for life, adjusted for inflation. The Survivor Benefit Plan lets your spouse keep 55% of it if you die. You make the SBP decision at retirement, and it is hard to undo.

What it is

Military retirement pay is a monthly pension paid for life after 20 years of service. How much you get depends on your retirement system:

  • High-3 (legacy): 2.5% times years of service times the average of your highest 36 months of basic pay. At 20 years, that is 50%.
  • Blended Retirement System: 2.0% per year, so 40% at 20 years, plus TSP matching. See our BRS guide.
  • Guard and Reserve: You earn points instead of years, and pay usually starts at age 60. It can start earlier if you served on certain active duty orders.

Retired pay gets a cost-of-living adjustment (COLA) each year. For 2026, the COLA was 2.8%.

The Survivor Benefit Plan (SBP)

Your pension stops when you die. SBP lets your survivor keep getting a monthly check. If you choose full coverage, your spouse gets 55% of the base amount for life. The base amount and the payment both rise with COLA.

Most members who joined after March 1, 1990, and retire for length of service pay 6.5% of the base amount as a premium. On a $2,000 base amount, that is $130 a month, taken out before taxes. Once you have paid for 360 months (30 years) and you are at least 70, premiums stop but coverage stays.

Who gets it

  • Members with 20 qualifying years of service, and members retired for disability.
  • SBP covers spouses, former spouses, children, or in some cases another person with an insurable interest.
  • While you are on active duty, your survivors are covered by SBP at no cost if you die in the line of duty.

How to use it

  • Talk with your spouse early. If you are married and choose less than full spouse coverage, your spouse must agree in writing and the form must be notarized.
  • Go to your retirement briefings. Each service has a retirement services office. Use it.
  • Compare SBP to private life insurance. SBP is tied to inflation and is paid for life, which most insurance is not. Life insurance can stop if you stop paying, and it gets expensive with age.

What people miss

  • SBP and VA benefits now stack. The old rule that reduced SBP payments for survivors who also got VA Dependency and Indemnity Compensation (DIC) was fully phased out in 2023.
  • You have a short window. The SBP election is generally made at retirement. Changing it later is very limited.
  • TRICARE fees start at retirement. Budget for enrollment fees. See our TRICARE guide.
  • Divorce. A court order may require SBP coverage for a former spouse. Get legal help.
  • Arrears of pay. SBP does not cover the last partial month of retired pay. Set up a separate arrears of pay beneficiary with DFAS.

Related

See Blended Retirement System, Thrift Savings Plan, and our VA benefits section for disability pay and concurrent receipt.

Related benefits

  • The Blended Retirement System (BRS)
    BRS gives you a smaller pension than the old system, but adds free money in your TSP and a mid-career bonus. Even if you leave before 20 years, you walk away with savings. The key is to put in at least 5% so you get the full match.
  • Thrift Savings Plan (TSP): 2026 Limits and Tips
    The TSP is the military's version of a 401(k), with some of the lowest fees anywhere. For 2026, you can put in up to $24,500, plus catch-up money if you are 50 or older. Tax-free combat pay gets a special bonus.
  • Basic Pay and the 2026 Pay Raise
    Basic pay is the core of your paycheck and the number most other benefits are based on. Troops got a 3.8% raise in January 2026. Knowing how basic pay works helps you read your LES and plan for retirement.
  • BAH and BAS: Your Housing and Food Allowances
    BAH helps pay for housing and BAS helps pay for food, and neither one is taxed. For 2026, BAH rose an average of 4.2% and BAS rose 2.4%. These tax-free dollars are a big part of what you really earn.

Last reviewed 2026-11. Not affiliated with the Department of Defense. Confirm current rates with your finance office or the official source.

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