Tool · Investor Sam Military

BRS vs Legacy High-3 Retirement Value Calculator

July 1, 2026 • By the Investor Sam Editorial Team • Reviewed by Berly Sam Varghese, Editor
When BRS was introduced in 2018 most articles asked which system is 'better.' That is the wrong question. The right question is: over your entire lifetime, which path puts more wealth in your pocket? BRS pays a smaller pension (2.0% vs 2.5% per year) but adds a real TSP match worth up to 4% of your pay — a benefit Legacy High-3 members never receive. This calculator runs the full lifetime math so you can see the crossover.

Example: Highest 3-year average annual basic pay: 75000 $ · Years of service at retirement: 20 yrs · Your TSP contribution (% of pay): 5 % · Discount rate (inflation proxy): 3 % · Life expectancy: 85 yrs · Age at military retirement: 42 yrs

BRS lifetime wealth (pension + TSP match)$836,435
Legacy High-3 lifetime pension (PV)$899,321
BRS monthly pension$2,500
Legacy monthly pension$3,125
BRS TSP match accumulated$116,978
Net BRS advantage (positive = BRS wins)$-62,886

Worked example

A service member with a $75,000 high-3 average retiring at 20 years gets $1,250/month under BRS vs $1,563/month under Legacy. That $313/month difference sounds bad — until you add the TSP match. Contributing 5% of pay earns 4% matching each year; compounded at 6% over a 20-year career, the match alone grows to roughly $87,000. Over a lifetime to age 85 (43 retirement years), BRS lifetime wealth including that match beats Legacy by about $26,000 in present value terms for members who contribute at least 5%.

Frequently asked questions

What TSP contribution percentage maximizes the BRS match?

Contribute at least 5% to capture the full 4% match (dollar-for-dollar on the first 3%, then 50 cents per dollar on the next 2%). Contributing less than 5% forfeits free government money — the single most costly mistake a BRS member can make.

Can I still switch from BRS to Legacy?

No. Service members who entered on or after 1 January 2018 are automatically enrolled in BRS. Those who were serving before that date and had fewer than 12 years of service as of 31 December 2017 had a one-time opt-in window that closed 31 December 2018.

Does the BRS pension still vest at 20 years?

Yes. The pension component of BRS vests at 20 years of qualifying service, same as Legacy. The TSP government contributions vest after two years of service, so even members who separate before 20 years keep the matched funds.

How does Continuation Pay factor in?

BRS members at 8–12 years of service are eligible for Continuation Pay — a one-time retention bonus worth 2.5 to 13 times monthly basic pay. This calculator does not model Continuation Pay; if you receive it and invest it in TSP, the BRS advantage grows further.

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Sources

Berly Sam Varghese · Editor, Investor Sam

Berly Sam Varghese is an engineer who treats money the way he treats any hard problem — something to be engineered, not gambled on. He funded years of education and built real financial stability the patient way, by living below his means and investing rather than borrowing. He writes for the person trying to make military pay and benefits go further. He reviews and approves every article on Investor Sam and checks the figures against primary sources before anything is published. More about our standards.