Episode 020 - Financial Value of the BRS Pension

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: [email protected] 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.