401(k) or 20 Years? The Great Divide in Retirement

What Happens When Your Pension Has a Drop-Off Cliff

Contrary to popular belief, most service members do not retire with benefits.

Civilian workers can move jobs and roll over their 401(k)s. They can invest at 22 and leave the workforce at 50 if they’re smart and lucky.

Military members? It’s 20 years or bust.

Until recently, the military retirement system was all-or-nothing — you serve twenty years, you get retirement pay. Less than twenty? You walk away with nothing but the GI Bill and a few scars.

For context, only 17% of service members make it to year 20.

The “Blended Retirement System” was introduced to help close this gap, allowing earlier investment — but it still pales in comparison to civilian savings strategies. And again — disability, medical discharge, or injury can derail a career and deny you full benefits.

For service families already struggling with lower pay than their civilian counterparts, this retirement cliff is just one more reminder: you bet your future on the military’s structure and mission.

If you’re not standing after 20 years, the house wins.