Know your first 24 months of retirement before they start

How to use Runway

1. Pick your pay grade, years of service, and retirement system.
2. Pick your VA rating and who counts as your dependents.
3. Pick the state you will live in, enter your age, and check the tax rates.
4. Enter savings, terminal leave, new income, and costs, then set when each income starts.
5. Read the result line and the tightest month. The table shows every month.
6. Tap the what-if buttons to see a late VA decision or a late job start.
7. Open Your TSP after service if you have a TSP balance.

How the numbers are worked out

Retired pay

Basic pay at your grade and years of service, times years of service, times 2.5% (High-3) or 2.0% (Blended). The result is capped at 75% of basic pay. Runway uses the 2026 basic pay table for your final year. Your real retired pay uses the average of your highest 36 months, which is usually a little lower.

Your DFAS estimate

If you type your own gross monthly retired pay, Runway uses it and skips the calculation.

VA pay

The monthly rate for your rating and dependents from the VA table below. It is tax free at the federal level and in every state.

VA offset

With a rating under 50%, retired pay is reduced by the VA amount unless you qualify for CRSC. With a rating of 50% or more and 20 or more years of service, you get both in full.

Federal tax

The rate you enter times your taxable retired pay.

State tax

Your state’s exclusion is taken off first, using your age and income where the state requires it. The rest is taxed at the rate you enter. The state defaults are rough, so edit them.

Monthly money in

After-tax retired pay, VA pay, and new income, each starting the month after its delay.

Monthly money out

Living costs plus new health insurance. Month 1 also adds your moving costs and the terminal leave payout comes in.

VA back pay

If checked, one lump sum equal to the months you waited times your monthly VA pay arrives with the first VA deposit.

Result line

Red if your balance goes below zero, amber if your lowest balance is under one month of costs, green otherwise.

Taxes

• VA disability pay is not taxed. The IRS says not to include VA disability benefits in gross income. Source: IRS: veterans tax information, IRS Publication 4782.
• Military retired pay is taxed as a pension. It goes on the federal return as pension income. Source: IRS Publication 4782.
• The estimator. The estimator in the Retirement plan tab uses the 2026 brackets below, the standard deduction, and your filing status. It applies the brackets to your retired pay first, then to wages and self-employment income on top. It is federal only. The state tax is in the plan above it.
• 2026 standard deduction. Single $16,100, married filing jointly $32,200, head of household $24,150. Add $2,050 per person 65 or older if unmarried, or $1,650 per person if married. Source: IRS: 2026 inflation adjustments, Rev. Proc. 2025-32.
• Senior deduction. For tax years 2025 through 2028, people 65 or older get an extra $6,000 each, or $12,000 for a couple if both qualify. It starts to phase out above $75,000 of income for single filers and $150,000 for joint filers. Runway applies it only at or below those limits and leaves it out above them, so the estimate can run a little high. Source: IRS: enhanced deduction for seniors.
• Child tax credit. $2,200 per qualifying child under 17 for 2026. Runway applies it only up to the tax you owe, and only when income is below $200,000 ($400,000 if married filing jointly). Those limits are confirmed for 2025, not yet for 2026, and the credit has Social Security number rules. Source: Rev. Proc. 2025-32, IRS: Schedule 8812 instructions.
• Payroll tax on new income. An employee pays 6.2% Social Security tax up to $184,500 of wages in 2026, and 1.45% Medicare tax on all wages. A self-employed person pays 12.4% and 2.9% on 92.35% of net earnings, and can deduct half of it. Source: IRS: Topic 751, IRS: Topic 554, SSA: wage base.
• Left out. Additional Medicare Tax of 0.9% over $200,000 single or $250,000 joint, itemized deductions, credits other than the child credit, the alternative minimum tax, tax on Social Security benefits, and state tax on new income. Source: IRS: Additional Medicare Tax.

2026 federal brackets (taxable income, after deductions)

Sources: IRS: 2026 inflation adjustments (single and joint), Rev. Proc. 2025-32 (head of household).

Rate tables

How current the numbers are

What each set of figures covers, and when it next changes. Runway is updated when these change. Where the source is a published chart rather than an agency table, confirm the figure with the agency before you act.

Reserve and National Guard retired pay

• Who qualifies: 20 years that each earned at least 50 retirement points. This covers the Army, Navy, Marine Corps, Air Force and Coast Guard Reserves and the Army and Air National Guard.
• How points add up: 1 point per day of active duty, 1 per drill period, 15 membership points a year, up to 365 a year.
• The formula: total points ÷ 360 gives your years of service. Multiply by 2.5% (High-3) or 2.0% (Blended), then by your average highest 36 months of basic pay. The share is capped at 75%.
• When it starts: age 60. Each 90 days of qualifying active duty after January 28, 2008 lowers the age by 3 months, to a floor of 50.
• Space Force: there is no separate Reserve. Part-time Guardians began in 2026 and retire under the same rules as the Air Force Reserve.

Survivor Benefit Plan (SBP)

• The cost for spouse coverage is 6.5% of the amount of retired pay you choose to cover. You can choose $300 up to your full retired pay. Source: DoD: SBP spouse coverage.
• Your spouse gets 55% of that covered amount each month. Premiums come out before tax, and the payments to your spouse are taxable. Source: DoD: SBP spouse coverage.
• Premiums stop after 360 months of payments and age 70. The covered amount and the survivor payments rise with cost-of-living increases. Source: DoD: SBP spouse coverage.
• After you retire, coverage can be stopped only in months 25 to 36 after your retired pay starts. Source: Air Force retiree SBP FAQ.
• Child coverage ends when the youngest child turns 18, or 22 if unmarried and a full-time student. After a divorce, you can cover a former spouse by sending the divorce decree and DD Form 2656-1 within one year. Source: Air Force retiree SBP FAQ.
• With no SBP, your spouse gets nothing from your retired pay after you die. Married members decide this before retirement. Source: Air Force retiree SBP FAQ.
• Runway's SBP line uses the 6.5% rate and the 55% spouse payment above. Confirm your choice with DFAS before you retire.
• Rules for spouse sign-off, any new open enrollment, and Reserve and Guard survivor coverage are not confirmed here. Ask your retirement services office or DFAS.

Health and life insurance

• TRICARE fees, 2026, per year. Prime: $381.96 one person and $765 family in Group A (joined before January 1, 2018); $462.96 and $927 in Group B. Select: $186.96 and $375 in Group A; $594.96 and $1,191 in Group B. Source: TRICARE costs and fees.
• Catastrophic cap, per family. Group A Prime $3,000 and Group A Select $4,381. Group B is $4,635 for both. Select deductibles in Group A are $150 one person and $300 family. Sources: TRICARE costs and fees, TRICARE catastrophic cap.
• Enroll within 90 days of retiring. Coverage does not continue on its own. If you miss it, you can enroll back to 12 months after retirement, but claims wait and you owe fees back to your retirement date. Source: TRICARE: retirement changes your coverage.
• TRICARE for Life at 65. You need Medicare Part A and Part B. If you lack Part B or stop paying its premiums, you lose TRICARE. Source: TRICARE for Life.
• If you leave without retired pay. Retiree TRICARE is for members who retire. Some members who separate involuntarily with honorable service, and some others, get the Transitional Assistance Management Program: 180 days of TRICARE after regular benefits end, with no premiums. It does not apply to everyone, so check milConnect. VA health care is a separate path and has its own eligibility rules. Involuntary separation pay is a one time payment for members separated with at least 6 and fewer than 20 years of service, and the VA withholds VA disability pay until the total equals what you received. Sources: TRICARE: TAMP, VA: health care eligibility, militarypay.defense.gov: separation pay.
• Medicare Part B timing. Your Part B enrollment window lasts 7 months: it starts 3 months before the month you turn 65 and ends 3 months after it. If you are not already getting Social Security, Railroad Retirement or OPM benefits, you sign up yourself, and TRICARE advises enrolling no later than two months before you turn 65 to avoid a gap. Missing the window can mean a late penalty that lasts as long as you have Part B. Sources: Medicare: when coverage starts, TRICARE: retirees and Medicare.
• TRICARE Retired Reserve (premium plan, 2026): $645.90 a month for you alone, $1,548.30 for you and family. Source: TRICARE Retired Reserve costs.
• Dental and vision. Retirees use FEDVIP, run by OPM, with enrollment through BENEFEDS. Open season is each November to December. New retirees can enroll from 31 days before to 60 days after retirement. Retiree vision requires TRICARE health enrollment. Sources: TRICARE: FEDVIP open season, BENEFEDS FEDVIP fact sheet.
• Life insurance. SGLI ends 120 days after you separate. You can apply for Veterans' Group Life Insurance (VGLI) up to 1 year and 120 days after separating, up to $500,000. VA's two pages word the no-health-questions window differently, so confirm the exact date with VA. Sources: VA: apply for VGLI, VA: VGLI eligibility.
• VA health care. A service-connected rating of 50% or more is Priority Group 1, with no copays for outpatient care, inpatient care or medications. Sources: VA priority groups, VA copay rates.

Discounts and perks

• Veteran ID Card. A free digital photo ID from the VA for veterans who served on active duty, in the Reserve or in the Guard and left with an honorable or general discharge under honorable conditions. VA says it is meant for business discounts, but each business decides what it accepts. Source: VA News: your VA ID card, VA: get a Veteran ID Card.
• Year-round discount list. VA News keeps a list by category. Most entries are private companies, so confirm the terms with each one. Source: VA News: veteran and military discounts.
• Exchange shopping online. All honorably discharged veterans, including Reserve and Guard veterans, can shop the military exchanges online (AAFES, NEX, MCX, CGX) after an online check. Family members are not covered. Veterans rated 100% disabled keep their in-store privileges. Source: Military OneSource: veterans online shopping.
• American Forces Travel. Discounts on airfare, hotels, cruises, trip packages and events. Military OneSource lists retirees and veterans among those it is for, and sends you to the program site for the exact rules. Source: Military OneSource: American Forces Travel.
• Veterans Canteen Service. Shop through the VA's own retail service. Eligibility is tied to VA health care enrollment. Source: Veterans Canteen Service.

Offers change. Runway links only to government pages and does not endorse any company.

Housing and VA loan

Try the VA loan calculator in the VA home loan tab.

• VA home loan. No down payment is required if the price does not exceed the appraised value, and there is no monthly mortgage insurance. Borrowers with full entitlement have no VA loan limit. Sources: VA purchase loan, VA loan limits.
• Funding fee (rates VA lists as effective April 7, 2023, so check the page for changes). First use: 2.15% with under 5% down, 1.5% with 5% or more, 1.25% with 10% or more. After the first use: 3.3% with under 5% down, 1.5% and 1.25% at the higher down payments. The refinance rate is 0.5%. Source: VA funding fee and closing costs.
• Who skips the fee. Anyone who receives VA compensation for a service-connected disability, among others. Sources: VA funding fee and closing costs, VA News: who is exempt.
• Start with a Certificate of Eligibility. Most online requests are issued automatically. Source: VA News: VA home loan basics.
• Retirement move. If you have more than 8 years of continuous active duty, schedule your household goods move within 1 year of your retirement date. Extensions are short and go no longer than 6 years in total, and only for medical treatment, education or training, or unexpected hardship. Check weight limits in the Joint Travel Regulations. Sources: move.mil: retirees and separatees, Joint Travel Regulations.
• Property tax breaks for disabled veterans differ by state. Texas exempts the full appraised value of the home of a 100% disabled veteran. Virginia has an exemption for a disabled veteran's main home (Va. Code §58.1-3219.5), so check its rules. Sources: Texas Comptroller, Virginia Tax, VA News: state tax exemptions.

What Runway leaves out

• Yearly cost of living raises and inflation.
• Deductibles and copays for TRICARE Select, dental and vision premiums, and life insurance premiums. Use the health insurance and living cost boxes for these.
• Medical retirement and disability severance.
• For Reserve and Guard retirement: the 8-year rule on recent service, drill-by-drill point counting, and the Reserve TSP match. You enter your total points yourself.
• VA special monthly compensation, individual unemployability, and add-ons for a child over 18 in school or a spouse who needs aid and attendance.
• Investment growth on your savings and tax on any new job or business income.
• Exact city and county tax calculations.

Glossary

Basic pay

Your base monthly military pay, before housing and other allowances.

High-3

The legacy retirement system. Retired pay is 2.5% times years of service times the average of your highest 36 months of basic pay.

Blended Retirement System

The newer system for people who joined in 2018 or later, or who opted in. Retired pay is 2.0% per year of service, plus government contributions to your TSP while you served.

DFAS

The Defense Finance and Accounting Service. It pays your retired pay and can give you an exact estimate.

CRSC

Combat-Related Special Compensation. A tax-free payment for a combat-related disability that replaces the VA offset. You apply through your service branch.

CRDP

Concurrent Retirement and Disability Pay. It lets retirees with 20 or more years and a VA rating of 50% or more receive full retired pay and full VA pay.

VA rating

The percentage the VA assigns to your service-connected disabilities. It sets your monthly VA pay.

Dependents

A spouse, children, or parents the VA counts for extra pay. You must report them to the VA.

Back pay

VA pay owed from your claim’s effective date until the VA starts paying.

Terminal leave

Unused leave you take before your separation date while you are still paid.

SBP

The Survivor Benefit Plan. Optional coverage that pays your spouse part of your retired pay after you die. The premium comes out of retired pay.

COLA

Cost of living adjustment. The yearly raise to retired pay and VA pay.

Debt avalanche

Pay minimums on every debt, then put all extra money on the debt with the highest interest rate. It usually costs the least interest.

Debt snowball

Pay minimums on every debt, then put all extra money on the smallest balance first. It clears debts sooner, which some people find motivating.

TSP

The Thrift Savings Plan, the federal retirement savings plan, similar to a 401(k).

Direct rollover

Moving TSP money straight to an IRA with no tax withheld.

IRA

An individual retirement account. Traditional IRAs hold pretax money. Roth IRAs hold after-tax money that grows tax free.

BLS median pay

The middle yearly pay for a role from the Bureau of Labor Statistics. Half of workers earn more and half earn less.

SDVOSB and VOSB

Service-disabled veteran-owned and veteran-owned small businesses. SBA certification can open federal contract set-asides.

SkillBridge

A DoD program that lets eligible service members train with a civilian employer during their last months of service.

Franchise Disclosure Document

The legal document a franchisor must give you before you buy. It lists costs, fees, earnings claims, and closures.

Franchise 500

Entrepreneur magazine’s yearly ranking of franchise brands.

Sources and how sure each number is

• VA.gov compensation rates Base VA rates by rating and dependents. The amounts for each added child came from published rate guides that match the VA’s tables, so confirm them on VA.gov.
• Executive order pay tables: Schedule 8, Monthly Basic Pay The 2026 basic pay table, effective January 1, 2026. Runway's 20 to 30 year columns were checked against it. DFAS also publishes the tables.
• statebystatetax.com, Veterans United, Rank and Pay, and Military.com State tax treatment. These guides disagree on several states, shown as VERIFY. Use your state tax agency as the final word.
• DFAS retired military forms and VA Form 21-526EZ Names and purposes of the retirement pay, tax withholding, Survivor Benefit Plan, and VA claim forms listed on the Retirement plan tab.
• SBA Franchise Directory, SBA 7(a) loans, and MilitaryConsumer.gov Small business and franchise resources on the Own a business tab. The June 1, 2025 franchise directory rule comes from a law firm summary of SBA’s lending rules, so confirm it with your lender.
• TSP forms and resources The TSP says withdrawals after leaving service are requested in My Account with no paper form. Older guides still mention forms TSP-70 and TSP-77.
• OPM: FERS information The three parts of FERS (basic benefit, Social Security and the TSP), for a spouse who works for the federal government.
• BLS: real estate brokers and sales agents Median pay of $57,400 in May 2025, state licensing, and the share who are self-employed.
• OPM: 2026 General Schedule pay tables Base pay by grade and step with the 1% January 2026 increase, and the locality tables.
• OPM: FERS basic annuity formula 1% of high-3 pay per year of service, or 1.1% at age 62 or older with 20 or more years.
• OPM: FERS retirement eligibility Immediate retirement rules, MRA+10 and the minimum retirement age.
• Federal Retirement Thrift Investment Board: TSP letter to FERS new hires The 1% agency automatic contribution and the match on the first 5% you contribute.
• FedWeek: military service in a federal annuity The deposit and the military retired pay waiver rule, with the combat-disability and Reserve exceptions. Confirm with OPM.
• FedSmith: 2026 locality pay percentages The locality percentages used here, checked against a second source. Confirm your area with OPM.
• Bureau of Labor Statistics Occupational Outlook Handbook Median pay in May 2025, job growth for 2025 to 2035, and typical education for every role on the Jobs tab. Growth is shown only where the BLS page gave it.
• Entrepreneur: top 10 franchises in every industry, 2026 and NJBIZ on the 2026 Franchise 500 Franchise ranks and category cost ranges. Automotive and fitness showed identical figures on the source page, so I left the automotive range out.
• SBA veteran small business certification Who qualifies and what certification allows.
• FINRA: rolling over TSP funds and FedWeek: TSP rollovers TSP rollover rules, forms, and the age 55 exception.
• DoD: Survivor Benefit Plan spouse coverage The 6.5% cost, $300 minimum, 55% annuity, paid-up rule, tax treatment and cost-of-living raises.
• Air Force retiree SBP FAQ Stopping coverage in months 25 to 36, child coverage, former spouse coverage.
• Marine Corps: Reserve Component SBP The 20-year notice and the 90-day election. Not a DFAS page, so confirm with DFAS.
• TRICARE costs and fees 2026 Prime and Select enrollment fees, deductibles and Retired Reserve premiums.
• TRICARE catastrophic cap Yearly out-of-pocket limits.
• TRICARE: retirement changes your coverage The 90-day enrollment window and late enrollment.
• TRICARE for Life Medicare Part A and B requirement at 65.
• TRICARE Retired Reserve costs 2026 monthly premiums.
• TRICARE: FEDVIP open season Dental and vision open season and new-retiree window.
• BENEFEDS FEDVIP fact sheet Who runs FEDVIP enrollment.
• VA: apply for VGLI VGLI deadlines and amounts.
• VA: VGLI eligibility Eligibility and the $500,000 maximum.
• VA health care priority groups Who is in Priority Group 1.
• VA health care copay rates No copays at 50% or more.
• VA purchase loan No down payment and no monthly mortgage insurance.
• VA loan limits No limit with full entitlement.
• VA funding fee and closing costs Funding fee table and exemptions.
• VA News: who is exempt from the funding fee Exemptions explained.
• VA News: VA home loan basics Certificate of Eligibility and refinance basics.
• move.mil: retirees and separatees The 1-year retirement move window and extensions.
• Joint Travel Regulations Weight allowances by rank.
• Texas Comptroller: 100% disabled veteran exemption Texas property tax exemption.
• Virginia Tax: ruling on the veteran exemption Virginia disabled veteran home exemption.
• VA News: state tax exemptions Overview of state exemptions.
• VA: Post-9/11 GI Bill rates 2026-27 tuition cap, online housing rate and books stipend.
• VA: housing and book payment FAQ Rate of pursuit and online housing rate.
• VA: Post-9/11 GI Bill 36 months and the expiration rules.
• VA: transfer GI Bill benefits Transfer rules.
• VA: Montgomery GI Bill rates Monthly rate for 2026-27.
• VA: how to apply VA Form 22-1990 and proof of eligibility.
• VA: Yellow Ribbon Program Extra help with private school tuition.
• VA: education eligibility GI Bill eligibility.
• VA: VR&E eligibility Chapter 31 rules.
• VA: VR&E rates, fiscal 2026 Monthly pay for school.
• VA: Dependents Education Assistance Chapter 35.
• VA: Fry Scholarship For children and surviving spouses.
• VA: VET TEC 2.0 Tech training program.
• VA: education payments and taxes GI Bill payments are tax-free.
• BLS: aerospace engineers May 2025 pay and 2025 to 2035 outlook.
• BLS: marine engineers and naval architects May 2025 pay and outlook.
• BLS: computer and information research scientists May 2025 pay and outlook.
• BLS: data scientists May 2025 pay and outlook.
• BLS: software developers May 2025 pay and outlook.
• BLS: welders, cutters, solderers, and brazers May 2025 pay and outlook.
• BLS: boilermakers May 2025 pay and outlook.
• BLS: machinists and tool and die makers May 2025 pay and outlook.
• BLS: aerospace engineering and operations technicians May 2025 pay and outlook.

Planning guidance, not financial or legal advice. Runway shows estimates from numbers you enter. DFAS, the VA, the TSP, and your state tax agency decide your real amounts.