Life in the military comes with unique financial challenges and opportunities. Being able to react to the situations and events that come along will affect the progress you make toward your spending and savings goals. One opportunity servicemembers can take advantage of is a cost-of-living increase to their military pay, depending on the annual Department of Defense budget. Intentionally planning how you will incorporate that pay increase can make a substantial difference in your overall financial goals. If you don’t make the most of it when you can, the increase will be absorbed quickly into your everyday spending. 

Another opportunity for servicemembers to gain a financial advantage is through military continuation pay. If you are enrolled in the Blended Retirement System (BRS), you’re eligible for continuation pay, a one-time cash bonus payout intended to be paid upon the completion of your 8- to 12-years of service if you’re willing to make an additional service commitment. You must apply for continuation pay by the conclusion of your 12th year of service because after that it will no longer be available to you.  

The amount and timing of the continuation pay is determined by each service branch and is based on military retention needs. Also, each service branch communicates this information differently. Be sure to educate yourself on continuation pay eligibility and application requirements because, if you plan to request continuation pay, you’ll need to stay aware of the eligibility window for your service component and act fast, so you don’t miss the opportunity. 

Eligibility requirements for receiving continuation pay can change annually, according to the Department of Defense budget. You can find up-to-date continuation pay rates at Blended Retirement. Currently, eligible servicemembers may receive these continuation pay multipliers: 

• Army, Air Force, Navy: 2.5 to 13 times monthly basic pay; Navy Sailors may receive this as a lump sum or in two or four annual payments.  
• National Guard and Reserves: Generally 0.5 times active monthly base pay.  

To learn more about continuation pay, visit FINRED | Blended Retirement System.  

For additional questions about military benefits or financial education resources, contact AAFMAA Member Benefits at 800-522-5221, and then follow the prompts, or email [email protected].  

The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsement.  Photo by Pfc. Nhimir Sowell. U.S. Army Maj. Britain Seaburn, with the U.S. Army Medical Center of Excellence, briefs Soldiers on the importance of nutrition and hydration during demanding training situations, on Martindale Army Airfield, San Antonio, November 3, 2024.