rickair7777

Entirely possible. But unless we are talking full-on Mad Max, those who have cash and real property will still have some of it (significantly reduced by out-of-control inflation).

Those depending on the government will end up in the same boat as our former adversaries who retired from the Red Army.

If you're really worried, shift your portfolio to pallets of NATO 5.56

Tanker-driver

I can confirm this. Waited 90 minutes in line to talk to Emirates a few months back. When I told them most of my time was military I was given my free pen and the conversation promptly ended.

Mink

Yeah. Why would they want a guy with heavy, multi-engine, international experience anyway?

Their bat and ball, I guess they can make the rules - even if they're ridiculous.

USN(Ret)

Interesting perspectives on the future of military pensions. This stuff gets tossed around on other boards with similar discussions about Social Security. There's a contingent out there that wishes all government entitlement programs would fall flat on their face, with all programs ending abruptly. Most of these folks have made a lot of money, and advocate complete self-reliance as far as retirement goes. I agree with some others here,that no matter where your retirement income comes from, be it Wall Street or a government check, if it gets to the point where entitlement checks can't be issued, there's a strong chance private investments will be worthless as well. There's going to be bigger issues, than just having your pension check cut off.

But it makes the angry taxpayer crowd feel good, when they fantasize about people losing their government pensions. In reality, it's not likely to happen that way. They'll be grandfathering and pro rating, like any other time benefit programs have been reformed.

In my case, if DFAS and the SSA can't keep their direct deposits going for another 15 years or so, I don't care what happens after that.

crewdawg

It's been a few months since I read it, but I'm pretty sure under one of the last proposals, they only grandfathered people with 15+ years of service. Less that that, then you would go under the new retirement program.

USN(Ret)

There's talk of a 10 year vesting provision in the "new" plan as well. The main component is that the immediate receiving of pension checks upon retirement would be ended. With the checks starting at age 60, like reserve retirement. The defined benefit would be reduced, and be complemented with mandatory TSP contributions.

In effect, completion of a 20 year career, would be the same as being "fired" from a civilian job in your 40's. Alone in an age sensitive, hostile job market, with nothing to fall back on. I can't see people hanging around the military, for benefits that can be replicated in the civilian market. I suppose TriCare would still be superior to civilian plans, but with Obamacare on the horizon, who knows.

crewdawg

The active dury military would be screwed!

grasshopper

You'd need to have a place to land though...might keep some in. It might make serving a little more flexible for folks too. They would have to relax time in grade requirements and limits etc. There are a ton of options out there to ease the transition. I'm not so sure that the personnel system in the DOD has changed substantially in the past 40 years. It's gotten more automated...mmm...but that's about it

Bottom line is no one wants to have their name attached to an entitlement cut...so nothing happens before the election. You'll see some contingency plans but nothing else. It's something that is coming down the military pipe though. Military budget projections suggest that something will change.

rickair7777

This is exactly 100% spot on and I've been telling anyone who will listen the same thing ever since this retirement reform discussion began (including a few connected democrats).

They want a bunch of talented folks to give up their best years abd then leave, and they will have to pay the going rate for that.

I personally don't care much if that payment takes the form of a defined-benefit deal like we have now, or they use retention bonuses to shape the force. But if I was an O-4 at 10 years with a master's and real-world prospects I would be looking for about $100K per year IN ADDITION TO normal pay and allowances.

They are going to pay for it up front or in arrears, their choice.

UASIT

I have been able to more than xxx my pay after the military...And, that's not including the wife's ability to work without us having to worry about moving every few years due to my military career. The only thing I miss is a federal retirement...Wife has one with her federal job...Wish I had mine..But, getting paid is not a problem post - military...

The reforms will gut the military services....Why would good people stay in???