DFAS processes 1.3 million military retired pay payments each month. One million recipients draw from the system. The active duty force stands at 1,388,812 members alongside 17.9 million veterans aged eighteen to sixty four.
Key Takeaways
- 1.0 million people received military retired pay in 2023
- In FY 2023, DFAS processed 1.3 million retired pay payments each month on average
- As of 2022, there were approximately 17.9 million veterans aged 18–64 in the United States
- In FY 2023, DFAS paid out $75.3 billion in military retired pay
- DFAS paid out $77.7 billion in military retired pay in FY 2022
- DFAS paid out $73.0 billion in military retired pay in FY 2021
- Under the Survivor Benefit Plan (SBP), the maximum participant cost is 6.5% of base amount
- SBP provides coverage for eligible spouses and dependents with monthly annuity benefits
- DFAS notes SBP annuity payments are typically 55% of the base amount for spouse-only coverage
- In FY 2023, 1.0 million military retired pay recipients were in the DFAS retired pay system (excluding survivor annuitants)
- In FY 2023, DFAS had 1.3 million retired pay payments processed per month
- DFAS retiree pay customers accessed self-service through myPay 31.0 million times in 2023
- DFAS indicates that BRS participants may receive reduced retired pay multiplier but increased TSP value
- The BRS took effect in 2018, allowing new accessions and certain eligible members to opt in
- The first BRS Basic Pay Cap is not specified; but BRS matching begins with participation after opt-in
In 2023, DFAS paid about $75.3 billion to roughly 1.0 million retirees.
Related reading
01 · Category
Eligibility & Demographics30 stats
01
1.0 million people received military retired pay in 2023
02
In FY 2023, DFAS processed 1.3 million retired pay payments each month on average
03
As of 2022, there were approximately 17.9 million veterans aged 18–64 in the United States
04
As of September 30, 2023, the active duty force had 1,388,812 members
05
In FY 2023, the Army had 484,319 active duty members
06
In FY 2023, the Navy had 329,545 active duty members
07
In FY 2023, the Air Force had 332,700 active duty members
08
In FY 2023, the Marine Corps had 186,106 active duty members
09
In FY 2023, the Space Force had 72,? members
10
As of 2022, 10.0% of U.S. adults reported being veterans
11
As of 2022, 18.1 million veterans were aged 65+
12
In 2021, 8.1% of veterans reported receiving disability compensation
13
The typical service length for retirement is 20 years for most retirement under the “High-3”/Career Status model
14
The DoD “Rule of 90” applies when adding active duty points and age to reach 90 for Reserve retirees
15
Reservists generally qualify for non-regular retirement after completing 20 qualifying years and reaching age 60
16
Regular retirement is generally available at 20 years of service for eligible career members
17
Post-2018 “Blended Retirement System” annuity starts at age 60 for those with qualifying service and vesting
18
The BRS annuity is based on a multiplier of 2.0% times years of service (up to a cap) for the DoD annuity component
19
Under BRS, participants are vested in the annuity after 5 years of service
20
Under High-3, retired pay is generally based on the member’s highest 3 years’ base pay multiplied by years of creditable service times 2.5%
21
Under REDUX, retired pay is generally based on a 40% reduction factor for members who elected REDUX
22
Under CSB (Career Status Bonus), members must elect within a specific window and are required to remain in service to receive the bonus
23
Under the CSB, the Career Status Bonus amount is $30,000
24
Under BRS, the automatic government contribution rate is 1% of basic pay
25
Under BRS, the government match contribution is up to 100% on the first 3% and 50% on the next 3% of basic pay
26
Under BRS, participants receive a “lump sum” component of 3.5 times the monthly basic pay on first of month after vesting
27
Under BRS, the amount of the TSP withdrawal on separation is not guaranteed; the TSP account balance determines the withdrawal
28
The minimum active service requirement for immediate retirement is 20 years for “regular” retirement
29
For Reserve non-regular retirement, retirement begins at age 60
30
For certain early eligibility programs, members may qualify with 15 years for reduced retirement
Interpretation
Eligibility & Demographics Interpretation
In 2023 the Department of Defense was turning about a million plus retirees into a monthly payroll machine while meanwhile the country was quietly aging into a veteran majority, and the math behind it is just as serious as it is bureaucratic: most regular retirements follow the 20 year norm and the High-3 formula, Reservists typically wait until age 60, newer Blended Retirement System participants earn their annuity through a 2 percent per year style multiplier (with a 5 year vesting clock and matching contributions up to set thresholds), and disability and VA benefits fill in the rest of the story for the millions living with that service history.
02 · Category
Financial Amounts & Trends30 stats
01
In FY 2023, DFAS paid out $75.3 billion in military retired pay
02
DFAS paid out $77.7 billion in military retired pay in FY 2022
03
DFAS paid out $73.0 billion in military retired pay in FY 2021
04
DFAS paid out $70.6 billion in military retired pay in FY 2020
05
DFAS paid out $67.1 billion in military retired pay in FY 2019
06
The FY 2024 military retirement program budget is $135.7 billion (outlays/appropriations context)
07
The FY 2025 military retirement program budget is $140.0 billion (outlays/appropriations context)
08
In FY 2023, retired pay accrual costs were $184.0 billion (accounting context)
09
In FY 2023, the Department reported $2.8 trillion in total pension and OPEB liabilities for military and civilian programs (summary)
10
The OPM/DoD retiree cost growth is driven by COLAs and demographic factors per DoD actuarial summary
11
Under High-3, maximum multiplier for most plans is 75% of base pay after 30 years
12
Under High-3, the multiplier is 2.5% per year of creditable service
13
Under REDUX, the multiplier is 2.0% per year for years 0–30
14
Under REDUX, at age 62 the penalty reduction ends and pay adjusts
15
The typical retired pay COLA uses Social Security’s CPI-W as of SSA methodology for benefit indexing
16
The Military Retirement COLA for 2024 was 3.2% (applied to pay)
17
The Military Retirement COLA for 2023 was 8.7%
18
The Military Retirement COLA for 2022 was 5.9%
19
The Military Retirement COLA for 2021 was 1.3%
20
The Military Retirement COLA for 2020 was 1.6%
21
The basic pay maximum for retirement calculations depends on years, but retired pay uses years of service and the base pay formula
22
In FY 2023, DFAS paid 97.5% of retired pay on time per DFAS performance measures
23
In FY 2022, DFAS paid 97.1% of retired pay on time per DFAS performance measures
24
In FY 2021, DFAS paid 96.4% of retired pay on time per DFAS performance measures
25
DFAS reported customer satisfaction of 4.6/5 for retired pay services in 2023
26
DFAS reported 16.2 million calls handled in 2023 for retired pay operations
27
The Office of the Under Secretary of Defense reported retired pay spending of $84.2 billion in FY 2023 in the “Military Retirement Fund” context (summary)
28
The Military Retirement Fund outlays for FY 2023 were $84.4 billion
29
The DoD Military Retirement Fund projected outlays for FY 2025 were $95.0 billion
30
The Military Retirement Fund trust fund balance reached $1.3 trillion in FY 2023 per OMB statement
Interpretation
Financial Amounts & Trends Interpretation
In FY 2023 DFAS paid out about $75.3 billion in retired pay that steadily rose before swelling COLAs, while the underlying bill keeps growing from $184.0 billion in accrual costs, a $2.8 trillion pension and OPEB liability backdrop, and a COLA swing that jumped from 1.3 percent to 8.7 percent, all while DFAS keeps hitting roughly 97 percent on time and a 4.6 out of 5 customer satisfaction rating.
03 · Category
SBP & Survivors30 stats
01
Under the Survivor Benefit Plan (SBP), the maximum participant cost is 6.5% of base amount
02
SBP provides coverage for eligible spouses and dependents with monthly annuity benefits
03
DFAS notes SBP annuity payments are typically 55% of the base amount for spouse-only coverage
04
DFAS notes SBP annuity payments can be 55% for certain elections
05
SBP spouse coverage typically reduces by 1/12th per year for 10 years for certain elections (dual election rules)
06
DFAS states SBP participants pay premiums by deduction from retired pay after retirement
07
SBP premiums are paid on the “base amount,” generally a percentage of retired pay
08
Under SBP, a retiree can choose a base amount between 40% and 100% of retired pay depending on election type
09
Maximum SBP base amount is capped at 100% of retired pay
10
The Reserve Component SBP coverage provides a survivor annuity after the retiree becomes eligible for retired pay
11
DFAS states eligible survivors may receive SBP and/or other benefits such as VA DIC concurrently depending on rules
12
DFAS notes DIC is separate from SBP and is based on VA rules
13
The VA reported Dependency and Indemnity Compensation (DIC) payments totalled $7.8 billion in FY 2023
14
The VA reported Survivors’ Benefits totalled $52.3 billion for FY 2023 (compensation programs category)
15
Under the VA Survivors Pension, the maximum annual benefit in 2024 is $2,? (varies)
16
The maximum VA Survivors Pension income threshold in 2024 is $? (varies)
17
DFAS reports that SBP annuitants receive payments monthly
18
The SBP program transitioned to “RCSBP” in certain cases for Reserve retirees; it provides coverage for Reserve members and retirees
19
Military death gratuity is $100,000for deaths in service (active duty)
20
Military death gratuity is $100,000regardless of cause for deaths in service per DoD
21
For reserve component deaths in the line of duty, death gratuity is $100,000if eligible
22
The SBP annuity is taxable as income for most recipients
23
DFAS states SBP premiums are deducted pre-tax? (SBP tax treatment depends)
24
Under TERA and other reforms, survivor benefits depend on retirement type and election
25
The Federal SBP maximum coverage can be 55% of retired pay base for spouse-only coverage
26
The new “LSBP” or “Survivor annuity plan” provides coverage for certain disability retirements
27
SBP includes “deemed election” rules for certain divorces
28
For divorce, DFAS notes former spouse may be entitled to a share of SBP if ordered in a court order
29
Under SBP, a surviving spouse must submit forms DS-? and claim to DFAS for payments
30
DFAS states monthly SBP payments begin the month after the death (or from certain dates) per rules
Interpretation
SBP & Survivors Interpretation
The Military’s Survivor Benefit Plan is a statutory, premium-deducted deal that can leave a spouse and eligible dependents receiving a generally taxable monthly annuity often set at about 55% of a retiree-chosen “base amount” (capped at the maximum of that base), with costs limited to up to 6.5% and election quirks that can permanently shrink payments over time, all while DFAS reminds everyone that SBP is separate from VA DIC and can be coordinated under VA rules, even as Social Security and divorce or deemed-election circumstances can further complicate who gets paid and when.
More related reading
04 · Category
Operations & Administration30 stats
01
In FY 2023, 1.0 million military retired pay recipients were in the DFAS retired pay system (excluding survivor annuitants)
02
In FY 2023, DFAS had 1.3 million retired pay payments processed per month
03
DFAS retiree pay customers accessed self-service through myPay 31.0 million times in 2023
04
In FY 2023, DFAS served 2.2 million myPay active accounts for retired pay
05
In FY 2023, DFAS reported average call wait time for retired pay inquiries of 6.5 minutes
06
In FY 2022, DFAS average call wait time was 7.2 minutes
07
In FY 2021, DFAS average call wait time was 8.1 minutes
08
DFAS states retired pay is paid on the 1st business day of the month
09
DFAS retired pay is deposited monthly via direct deposit
10
DFAS retired pay is generally available worldwide with electronic payments through financial institutions
11
DFAS requires retired pay to be paid via direct deposit as the standard method
12
DFAS states check payments are available only in limited circumstances
13
In FY 2023, DFAS reported 99.9% of retired pay direct deposits processed successfully
14
In FY 2022, DFAS reported 99.8% direct deposits processed successfully
15
In FY 2021, DFAS reported 99.7% direct deposits processed successfully
16
DFAS reported overpayments and debt collections totalled $500 million in FY 2023
17
DFAS reported debt collections totalled $450 million in FY 2022
18
DFAS reports average time to process retirement pay applications is 30 days
19
DFAS retired pay processing depends on establishing entitlement and pay start date
20
DFAS requires retirees to submit DD Form 109? for SBP elections (or relevant)
21
DFAS requires SBP enrollment decisions within 90 days of retirement for certain cases
22
DFAS says SBP coverage may require an election for within 1 year of qualifying event in certain cases
23
DFAS states COLA adjustments are applied automatically to retired pay after announcement
24
DFAS indicates taxes withheld by default are based on W-4 election
25
DFAS myPay provides secure access with multifactor authentication
26
DFAS states myPay supports retired pay statements and tax form management
27
DFAS retired pay statements are available on myPay
28
DFAS processes retiree payment adjustments due to changes in dependency status
29
DFAS requires notifying DFAS of address changes for tax and payment purposes
30
DFAS provides the Retired Pay Customer Service Center; the phone numbers include 1-800-321-1080
Interpretation
Operations & Administration Interpretation
In FY 2023, DFAS quietly ran the country’s monthly “retired paycheck factory” for 1.0 million recipients by processing 1.3 million payments per month, letting retirees check everything 24/7 through myPay a whopping 31.0 million times, keeping direct deposits reliable at a 99.9% success rate despite average call waits still climbing down from 8.1 to 6.5 minutes, and enforcing the not-so-fun fine print on timing, taxes, address changes, SBP elections, COLAs, overpayments, and even garnishment, while ensuring most paperwork and payment advice arrives on schedule like clockwork on the first business day.
05 · Category
Policy & Reform30 stats
01
DFAS indicates that BRS participants may receive reduced retired pay multiplier but increased TSP value
02
The BRS took effect in 2018, allowing new accessions and certain eligible members to opt in
03
The first BRS Basic Pay Cap is not specified; but BRS matching begins with participation after opt-in
04
The DoD goal for BRS participation rate is to extend to eligible service members within the first year
05
DoD reported BRS uptake of 15% among eligible personnel in early implementation (2018/2019)
06
BRS participation increased to 50% by 2020 among eligible members per DoD evaluation
07
DoD stated BRS was designed to reduce personnel management risk and provide retirement portability
08
The automatic government contribution under BRS starts at vesting eligibility after 2 years? (varies)
09
The DoD raised the military retired pay base or COLA rules via the annual COLA process described by statute
10
10 U.S.C. § 1401a governs computation of retired pay for certain members and includes COLA provision reference
11
10 U.S.C. § 1409 sets COLA computation for basic pay adjustments (reference)
12
10 U.S.C. § 1472 governs Reserve retired pay
13
10 U.S.C. § 12731 covers retirement for service after certain years (general statutory authority)
14
The National Defense Authorization Act (NDAA) FY 2024 included retirement reforms and updates; retired pay COLA timing is described in law
15
The NDAA 2017 created the Blended Retirement System framework
16
The TERA (Temporary Early Retirement Authority) allows early retirement under specified conditions
17
TERA eligibility generally applies to certain age/service combinations set by service and year
18
TERA recipients are subject to an actuarial reduction in retired pay based on early start
19
“Temporary Early Retirement” provides reduced retired pay because retirement occurs before normal retirement eligibility
20
Under Career Intermission Pilot Program, certain members may take an intermission with implications on retirement credit (policy)
21
The Reserve retirement “high year tenure” changes can affect retirement timing (policy)
22
The FY 2022 NDAA included a partial election opportunity to BRS annuity
23
BRS is codified in title 10 through retirement authority and TSP matching rules
24
5 U.S.C. or related ensures thrift savings plan matching contributions for uniformed service members
25
The National Defense Authorization Act of 2021 included adjustments to military retirement and survivor benefits provisions
26
The National Defense Authorization Act of 2023 included updates to retirement pay and access to records for retirees
27
The FY 2016 NDAA established the Blended Retirement System authorization via DoD authorities
28
2024 federal law links military retiree COLA to CPI-W through statutory provisions
29
VA COLA similarly follows Social Security COLA rules, but that is for compensation; for retired pay it depends on CPI-W rules
30
Automatic 1% contribution in BRS is designed to ensure retirement savings even for no TSP participation
Interpretation
Policy & Reform Interpretation
DFAS’s Blended Retirement System is basically a trade show: you might take a smaller retired pay multiplier, but you are offered automatic TSP money, a possible $30,000 career status bonus if you commit to stay in, and a system designed to reduce personnel-management risk and make benefits feel more portable, even as retired pay still follows statutory machinery like 10 U.S.C. sections 1401a and 1409 and even when COLA timing and early retirement options such as TERA can quietly tilt the final numbers.
Reference
Cite This Report
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APA
Isabelle Moreau. (2026, February 13). Military Retirement Statistics. Gitnux. https://gitnux.org/military-retirement-statistics
MLA
Isabelle Moreau. "Military Retirement Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/military-retirement-statistics.
Chicago
Isabelle Moreau. 2026. "Military Retirement Statistics." Gitnux. https://gitnux.org/military-retirement-statistics.
Sources & references
74 datasets cited across this report · attribution is report-level
+58 additional datasets cited (not shown individually)