Reserve Retirement
How retirement points work, what the gray area is, and when your retired pay actually starts.
Reserve retirement vs. active duty retirement
Active duty retirees begin receiving retired pay immediately after reaching 20 years of service. Reserve and National Guard retirees are different: you earn eligibility at 20 qualifying years, but your pay does not start until age 60 (or earlier if you meet certain deployment criteria).
The period between when you stop drilling and when your pay starts is called the gray area.
Qualifying years
A qualifying year for reserve retirement requires earning at least 50 retirement points in a retirement year (typically June 1 – May 31, though this varies by branch). Years with fewer than 50 points do not count toward the 20 you need to qualify for retirement.
You need 20 qualifying years and must receive a Notice of Eligibility (NOE) — sometimes called a "20-year letter" — from your branch before you can retire.
How points are earned
Use the Reserve Retirement Calculator to estimate your retired pay from your total points.
How retired pay is calculated
Reserve retired pay uses a points-based formula rather than years of service:
Example: 3,000 total points, retired as an E-8 at a base pay of $5,000/month:
- 3,000 ÷ 360 = 8.33 equivalent years
- 8.33 × 2.5% = 20.83% multiplier
- 20.83% × $5,000 = $1,041/month
Under BRS, the multiplier is 2.0% and the formula is otherwise the same.
The gray area
Once you earn 20 qualifying years and transfer to the Retired Reserve, you enter the gray area. During this period:
- You receive no retired pay
- You may be eligible for TRICARE Reserve Select (premiums apply)
- You retain your military ID
- You are subject to recall to active duty
When pay starts — and how to reduce the age
Retired pay begins at age 60 by default. However, certain active service performed after January 28, 2008 can reduce this:
- Each 90-day period of active duty served in a contingency operation reduces the start age by 3 months
- Maximum reduction: age 50
You must apply for retired pay — it does not start automatically. Apply through MyNavyHR, HRC, AFPC, or your branch's retirement services office approximately 90 days before your target start date.