by careinke » Sun 04 Jan 2015, 01:17:03
$this->bbcode_second_pass_quote('SeaGypsy', 'I') think the U.S. Military veterans pensions are going to be a crippler over coming years. Of a bunch of ex service personnel I am friendly with are a bunch of guys in their 70s & 80s from the Korea & Vietnam war eras, copping near $1k a week, for decades, living in 3rd world countries where their money goes much further than at home, but does essentially nothing for the U.S. economy. There must be hundreds of thousands of these guys scattered around the world now, with thousands more a month added.
In order to make $1,000 per week in retirement, you would have to retire as an O-5 (Lt. Col) with 22 years of service or higher. O-5's percentage wise are in the top 2% of the military ( I wonder what the retirement package for the top 2% of GM is?). An O-10 (four star general) with 38 years of service, the highest pay, would only pull in around $2,400 per week in retirement. There are 3 times as many enlisted retirees than officers. So you must know a lot of retired officers.
An E-5 (Enlisted Staff Sergeant) with 20 years, (about the lowest level you could retire), would draw about $357 per week. An E-9 with 38 years (The highest enlisted rank) would pull in around $840 per week. So no enlisted are making $1,000 per week from their retirement.
In addition, retirement pay is fully taxable. This is money that is returned to the Government (I always thought this was silly).
I would estimate the average military retirement works out to less than $500 per week. With 1.9 million retirees that works out to less than 50 billion a year. The military budget is about 1,000 billion, which works out to 5% of the military budget being used for retirement pay.
You also have to remember there used to be a lot more service members than there are now. Those guys are going to die out and the ranks of military retirees will decline. So bottom line, I don't think military retirement pay is going to collapse the government any time soon.