4 Key Steps in the March Toward a Comfortable Retirement

4) Look into a buyback

If you’ve taken a federal job that qualifies you for a civil pension, you may be able to boost that pension by adding your active-duty service to your civilian time. The catch? You’ll need to “buy back” your military time—in essence, convert it to the federal system—at the cost of 3% of your annual active-duty pay (payable either as a lump sum or payroll deductions). You can calculate how much a buyback would cost you on the Defense Finance and Accounting Service website. Says blogger Guina: “Before you sign up, make sure you’re ready for the long-term commitment.”

PrevPage 3 of 3Next

Leave a Reply

Your email address will not be published. Required fields are marked *