Retirement Comparison
BRS vs High-3 Military Retirement:
Which Is Better?
Bottom line: High-3 pays more if you serve 20+ years. BRS is better if you might leave before 20 — you keep vested TSP matching even if you never reach retirement. Run your numbers below.
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Side-by-Side Comparison
| Feature | BRS (Blended) | High-3 (Legacy) |
|---|---|---|
| Pension multiplier | 2.0% × years of service | 2.5% × years of service |
| Pay basis | Average of highest 36 months | Average of highest 36 months |
| Full pension at 20 years (E-7) | ~40% of base pay | ~50% of base pay |
| TSP government match | 1% auto + up to 4% match | None |
| Continuation Pay (CP) | 2.5×–13× monthly pay at 8–12 yr mark | None |
| Lump-sum option at retirement | Yes — 25% or 50% of projected value | No |
| REDUX option | No | Available (rarely beneficial) |
| Eligible if you leave before 20 yrs | Yes — keep vested TSP match | No (nothing if < 20 years) |
| Who it applies to | Entered service on/after 2018-01-01 | Entered service before 2018-01-01 |
Break-Even Analysis
The BRS pension starts at 40% of base pay at 20 years (vs 50% for High-3) — a 20% lower monthly check. But BRS members accumulate TSP matching throughout their career. The break-even calculation compares the lifetime value of both systems.
~$400/mo
Pension gap at 20 years (E-7)
High-3 pays more
~$60,000+
TSP match over 20-yr career (5% of pay)
BRS advantage
26–28 yrs
Lifetime break-even point
After retirement
Estimates based on E-7 with 5% TSP contribution, 3% annual pay raise, retirement at 20 years. Use the calculator for your specific situation.
Which Is Better for Your Situation?
Career military (20–30 years)
High-3 winsThe higher 2.5% multiplier outperforms BRS TSP matching for service members who definitely serve 20+ years. At 20 years an E-7 under High-3 gets ~50% base pay vs ~40% under BRS — that gap is ~$400/month and compounds over decades.
Likely to separate before 20 years
BRS winsUnder High-3 you leave with nothing if you separate before 20 years. Under BRS you keep the vested TSP matching contributions — up to 5% of your base pay per year. For someone who serves 8–12 years that can be $30,000–$80,000+ in their TSP account.
Unsure (8–15 years in)
BRS hedges the riskThe break-even point is roughly 26–28 years of retirement payments. If you live to average life expectancy and retire at 20, both systems are close in total lifetime value. BRS provides downside protection if you separate early; the cost is lower monthly pay if you stay.
Joined before 2018 and had an opt-in window
Situation-dependentIf you opted into BRS during the 2018–2019 window, the TSP matching likely makes it worthwhile unless you have 17+ years and are certain to hit 20. Run the calculator with your exact rank and years.
Common Questions
Can I still switch from High-3 to BRS?
No. The opt-in window for eligible service members closed December 31, 2019. If you entered service before January 1, 2018 and did not opt in during the window, you remain under High-3 (or REDUX) for life.
Does VA disability compensation affect retirement pay under BRS vs High-3?
The VA offset rules (and CRDP/CRSC concurrent receipt) are the same regardless of which retirement system you used. A 50%+ VA rating qualifies you for CRDP, which eliminates the dollar-for-dollar offset. Use the calculator to model both scenarios.
What is Continuation Pay (CP) under BRS?
CP is a one-time retention bonus paid between 8 and 12 years of service in exchange for a minimum 3-year service agreement. It ranges from 2.5× to 13× monthly base pay depending on your branch's needs. Active duty Army and Marine Corps pay is often at the higher end. CP can be invested in TSP for additional compounding.
What happens to BRS TSP matching if I separate at 10 years?
You are fully vested in the government TSP contributions after 2 years of service (the 1% automatic contribution vests at 2 years; matching contributions vest immediately). All vested TSP funds are yours to keep, roll over to a civilian 401(k), or leave in TSP.
Bottom Line
- Definitely retiring at 20+? High-3 pays more — 2.5% multiplier beats 2.0% + TSP matching for full-career service members.
- Might leave early? BRS gives you something to show for it. TSP matching is real money even at 8–12 years.
- Run your numbers. Estimates above are for E-7; your break-even shifts with rank, years, and TSP contribution rate.
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