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Maximizing Retirement for Military Doctors: Understanding the Blended Retirement System and Thrift Savings Plan

  • Writer: Daniel Harris
    Daniel Harris
  • Oct 22
  • 3 min read
A river in Alaska

Military doctors have a unique and rewarding career, but planning for retirement requires a clear understanding of the benefits available to them. The Blended Retirement System (BRS) and the Thrift Savings Plan (TSP) are integral components of this planning. Here's what military doctors need to know to make the most of these opportunities.


What Is the Blended Retirement System (BRS)?


Implemented on January 1, 2018, the BRS combines a traditional pension with a defined contribution plan, offering more flexibility and portability than the previous system. Under BRS, service members receive:


  • Defined Benefit Pension: A monthly payment based on the average of the highest 36 months of basic pay, multiplied by 2% for each year of service.

  • Defined Contribution: Automatic government contributions to the TSP, starting at 1% of basic pay, with matching contributions up to 5% after two years of service.

  • Continuation Pay: A mid-career incentive payment for those who commit to additional service.

  • Lump Sum Option: The choice to receive a portion of retirement pay as a lump sum at retirement.


This system is designed to benefit both those who serve a full 20-year career and those who serve shorter terms.


Understanding the Thrift Savings Plan (TSP)


The TSP is a retirement savings plan similar to a 401(k), available to federal employees and military members. Key features include:


  • Contribution Limits: For 2025, the contribution limit is $23,500, with an additional $7,500 catch-up contribution for those aged 50 and over.

  • Tax Options: Participants can choose between traditional (tax-deferred) and Roth (tax-free withdrawals in retirement) contributions.

  • Low Fees: The TSP is known for its low administrative costs, making it an efficient savings vehicle.

  • Investment Options: The TSP offers a range of investment funds, including lifecycle funds that automatically adjust asset allocation based on retirement target dates.


Strategies for Military Doctors

To maximize retirement savings, military doctors should consider the following strategies:


  1. Contribute to the TSP: Aim to contribute at least 5% of basic pay to take full advantage of the government's matching contributions.


  2. Utilize Roth TSP: Given the potential for low tax rates during service, Roth contributions can be advantageous, allowing for tax-free withdrawals in retirement.


  3. Plan for Continuation Pay: If eligible, consider the benefits of continuation pay, which can provide a significant financial boost during mid-career.


  4. Understand Lump Sum Options: Evaluate the pros and cons of taking a lump sum at retirement, considering personal financial goals and needs.


  5. Monitor TSP Accounts: Regularly review TSP accounts to ensure contributions are being matched and invested according to retirement goals.


Conclusion

For military doctors, the BRS and TSP offer robust retirement benefits that can be tailored to individual service careers. By understanding these systems and actively managing contributions and investments, military doctors can build a secure financial future. Consulting with a financial advisor experienced in military benefits can provide personalized guidance to optimize retirement planning.


If you would like to learn more about Daniel Harris or D.R. Harris & Co. you can do so here.


If you are within 5 years of retiring from active duty in the military and you would like to speak to a fiduciary financial advisor you can fill out our contact form here.


Disclosure: This article is based on information available as of October 2025 and we believe it to be accurate but you should do your own research as well. For the most current details on the Blended Retirement System and Thrift Savings Plan, please refer to official military resources. Unless you have a signed written agreement with D.R. Harris & Co. we are not your financial advisor and you need to do your own research and talk to your own advisors before acting any information you read about in this article.



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