How Much Does A Full Colonel Make In Retirement?

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The retirement pay for a full colonel in the U.S. military depends on several factors, including years of service, the specific branch of the military, and the retirement system under which the colonel is retiring (e.g., High-36 or the Blended Retirement System). Here’s an overview of how retirement pay is calculated and what a full colonel might expect to receive.

1. Understanding Military Retirement Pay Calculation

Military retirement pay is typically calculated based on the service member’s years of service and the average of their highest 36 months of basic pay (High-36), or in some cases, a different formula if under a different system.

High-36 Retirement System (Legacy System)

  • Formula:
    • The retirement pay is calculated using the formula:
      • Years of Service x 2.5% x Average of Highest 36 Months of Basic Pay
    • This percentage is then applied to the average of the colonel’s highest 36 months of base pay.

Blended Retirement System (BRS)

  • Formula:
    • Under the BRS, the formula is:
      • Years of Service x 2.0% x Average of Highest 36 Months of Basic Pay
    • This system also includes contributions to the Thrift Savings Plan (TSP), a type of retirement savings plan.

2. Estimating Retirement Pay for a Full Colonel

Let’s look at an example for a colonel with 30 years of service:

Basic Pay for a Full Colonel (O-6):

As of 2024, the basic pay for an O-6 (full colonel) with 30 years of service is approximately $13,649 per month.

High-36 System Example:

  • Years of Service: 30
  • Multiplier: 30 x 2.5% = 75%
  • Average Highest 36 Months of Pay: Assume $13,649 (final years pay) average.
  • Estimated Monthly Retirement Pay:
    • $13,649 x 75% = $10,236.75 per month
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Blended Retirement System Example:

  • Years of Service: 30
  • Multiplier: 30 x 2.0% = 60%
  • Average Highest 36 Months of Pay: Assume $13,649 average.
  • Estimated Monthly Retirement Pay:
    • $13,649 x 60% = $8,189.40 per month

3. Additional Considerations

  • Cost-of-Living Adjustments (COLA): Military retirement pay is adjusted annually based on inflation, which helps maintain purchasing power over time.
  • Disability Retirement: If the colonel has a service-connected disability, this could affect retirement pay through the addition of VA disability benefits, which might also be tax-free.
  • State Taxes: Some states do not tax military retirement pay, while others do, so this could affect the net income.

Summary

A full colonel retiring after 30 years of service can expect to receive around $10,236.75 per month under the High-36 system, or about $8,189.40 per month under the Blended Retirement System, before any applicable taxes and deductions. The exact amount will vary based on years of service, the specific retirement system, and other personal factors such as location and any applicable disability benefits.

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