Congress hires accountants to figure this stuff out. Here's an actual scenerio: When I retired, I made over $40K a year. Great! But about half of that was made up of various "allowances" not counted for retirement. So I get about $13K a year. Pretty good. But could you live on it? Okay. I am also eligible for a 10% disability. Extra money right? Nope. My disability pay cancels out an equal amount of retired pay. But disabilty pay isn't taxed you say! True enough. I come out $10 ahead. Okay, free medical. Wellllll it's not really free. Premiums must be paid. They are lower than yours, for sure. No gripe there. But when I'm 65, I go on Medicare. And, I could wind up at a VA hospital. Hey! Some of them are nice you say! Yeah but some aren't. I'd rather be sick than go to the one in Memphis. You still have medical though, you say. True enough. My point is this: The retirement benefits are not all that Congress would have you believe. Whenever Congress gives something to the Military, they take something as well. A 10% pay raise? Great! Except that housing allowance is being cut by an equal amount. One gets publicity, the other doesn't. I still get $13K a month though. And THE NAVY CAME OUT WAY AHEAD! Trust me on this. Still beats doing 40 years in a Wisconsin factory. Go Navy!! I'd recommend it to any young person.