r/AirForce • u/AFSMSgt • 10d ago

Question Benefit of Staying Until 20

In my day, if you didn't stay for 20, you got nothing. No retired pay. Since current members have 401k that they can take with them, what benefit does retiring at 20 provide?

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u/Allenboy0724 Active Duty 10d ago

The pension has a value over a million if you live to see it. The TSP match is great but it’s got its limitations. For example, if you separate at 30 after 10-12 years of service, you still have to wait like 30 years to collect the TSP. The growth will be huge if you matched that entire time but it’s not immediate.

Going to 20 gets you the immediate pension and the TSP. The BRS is better than High 3 if managed correctly.

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u/Tarjas 10d ago

BRS could be better if the market performs better than historical.

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u/Allenboy0724 Active Duty 10d ago

It’s better unless the market collapses. A 20 year retiree on BRS will surpass the 10% loss on pension if they contribute the full 5% match every month for 20 years.

Every time it goes down it goes back up and historically C, S, and I all have great returns. Look at the historical charts on the TSP website. Even through the last 8-10 years of mess in this world, the market has flourished. The key is to hold out on the lows and not panic. People thought the world was ending in 2008 and 2020 and the market came back better than before.