Becoming united states navy retired is a major life transition that changes your pay, healthcare, ID cards, and benefits overnight. According to the Defense Finance and Accounting Service (DFAS), Navy retirees receive lifetime monthly retirement pay — but only if you complete the right steps.
The problem many united states navy retired Sailors face is that critical paperwork, deadlines, and benefit rules are scattered across military and government websites. This guide breaks down the five things every newly retired Sailor must understand: how retirement pay works, which ID card you carry, healthcare transitions, survivor benefits, and the resources that protect your earned entitlements.
Let's get started.
1. How Navy Retirement Pay Actually Works
Navy retirement pay is a taxable monthly annuity paid for life, calculated from your years of service and your highest average pay.
For anyone united states navy retired under the Blended Retirement System (BRS), which took effect January 1, 2018, the multiplier is 2.0% per year of service, while the legacy "High-3" system uses 2.5% per year — meaning a 20-year Sailor under High-3 receives 50% of their average highest-36-month base pay.
DFAS pays retirees on the first business day of each month. Your first check may be prorated or delayed while your final records are processed, so budget for a gap of one to two pay cycles after your retirement date. Many a united states navy retired member is surprised by this delay.
How to apply this: Create your myPay account on the DFAS website before your retirement date so you can verify your first retirement payment and download your annual Retiree Account Statement (RAS) for tax filing.
2. Your Retired ID Card and base Access
As a united states navy retired member, your active-duty Common Access Card (CAC) is turned in on your last day. In its place, you receive a retiree ID card (DD Form 2 (Ret)) — valid for your lifetime in most cases.
The Department of Defense has moved ID card issuance to the next-generation USID card, a smart card that does not display your Social Security number. You can renew it at any Real-Time Automated Personnel Identification System (RAPIDS) site.
- Book an appointment through the RAPIDS Appointment Scheduler before visiting a DEERS office
- Update DEERS immediately after any life event, such as marriage or divorce
- Check expiration dates for dependents' cards, which often expire sooner than yours
How to apply this: Locate your nearest RAPIDS site using the official DoD ID Card Office Online scheduler and book your retiree card appointment before your terminal leave ends.
3. Healthcare: TRICARE After You Hang Up the Uniform
The moment you retire, you leave active-duty TRICARE plans and transition to TRICARE Retiree coverage. United states navy retired personnel have 90 days from the retirement date to enroll in TRICARE Prime or set up TRICARE Select — if you miss the window, you may face a waiting period.
At age 65, you must enroll in Medicare Part A and Part B to stay eligible for TRICARE For Life, which acts as secondary coverage to Medicare. The TRICARE website makes clear that losing Part B enrollment at 65 means losing TRICARE coverage entirely for a united states navy retired beneficiary.
| Healthcare stage | What applies | Action to take |
|---|---|---|
| Day 1 after retirement | TRICARE Prime or Select | Enroll within 90 days |
| Ages 65+ | TRICARE For Life | Enroll in Medicare A & B |
| Family members | Same retiree plans | Update DEERS promptly |
| Dental/vision | FEDVIP plans | Enroll during open season |
How to apply this: Visit TRICARE's official retiree page and calendar your 90-day enrollment deadline the week you receive your retirement orders.
4. Survivor Benefit Plan: The Decision You Cannot Undo
The Survivor Benefit Plan (SBP) is the most consequential — and least reversible — decision in your retirement package. SBP pays your eligible surviving spouse up to 55% of your retirement pay after your death, in exchange for a monthly premium deducted from your check.
If you elect SBP at retirement and later change your mind, you generally have only a limited window (typically within a set period after the first payment anniversary) to dis-enroll; after that, the election is permanent. Declining SBP without your spouse's written, notarized concurrence is not permitted for married members who are united states navy retired.
Consider a Navy chief retiring at 20 years of service: without SBP, a spouse could lose the entire monthly annuity when the retiree passes away. With SBP, a portion continues for life — a critical protection for anyone united states navy retired with a family.
How to apply this: Before your final out-processing appointment, ask your personnel office to run an SBP cost illustration using your actual projected retirement pay, and discuss the election with your spouse and a financial counselor.
5. Concurrent VA Disability and Retired Pay
Many united states navy retired members qualify for VA disability compensation, but by default you cannot receive full retired pay and full disability pay at the same time — one offsets the other unless you qualify for an exception.
Two programs change this:
- Concurrent Retirement and Disability Pay (CRDP): restores retired pay for retirees with a disability rating of 50% or higher
- Combat-Related Special Compensation (CRSC): restores retired pay for combat-related or hazardous-duty-related conditions, regardless of rating percentage
The Department of Veterans Affairs confirms that disability compensation is tax-free, while military retired pay is taxable — which is why a united states navy retired veteran with a high rating often prioritizes a correct VA disability claim.
How to apply this: File your VA disability claim through VA.gov while you still have access to service treatment records, and submit a CRSC application to the Navy if any conditions relate to combat or hazardous duty.
6. Free Resources Every Navy Retiree Should Use
You paid 20 years into this system — use the support built for you. Every Navy region operates a Retired Activities Office (RAO), and the Navy's official retiree seminars and newsletters (such as Shift Colors) keep members united states navy retired current on benefit changes.
Key resources worth bookmarking:
- Fleet and Family Support Centers — free financial counseling and transition assistance for retirees, not just active duty
- VA.gov — claims, healthcare enrollment, and records requests in one portal
- milConnect — update DEERS data, download documents, and manage beneficiary information
How to apply this: Sign up for the Navy's retiree newsletter through the Navy Retired Activities program and attend one retiree seminar within your first year — a smart move for anyone united states navy retired who wants to catch benefit updates they might otherwise miss.
Frequently Asked Questions About united states navy retired
How long does it take to receive my first retired pay check?
DFAS typically processes your first payment within 30 days of your retirement date, but complex records can take longer. A united states navy retired Sailor with an ongoing VA claim or corrected pay history often sees a prorated catch-up payment in the second or third month. Budget for at least a one-month gap after your final active-duty check.
Can I work a civilian job after retiring from the Navy?
Yes, with no restriction on private-sector earnings — your retired pay is not reduced by outside income. However, if a united states navy retired member takes a federal government job, retired pay may be offset once they become eligible for a civilian pension, depending on the position. Report any federal employment to DFAS to stay compliant.
Do I lose my GI Bill if I retire?
No — the Post-9/11 GI Bill remains available for 15 years from your last discharge date (for those who entered service before the 2013 change) or indefinitely under the Forever GI Bill for newer eligibles. Many a united states navy retired member uses it after leaving the service. Transfer-of-entitlement to dependents must be completed while still serving.
What happens to my retired pay if I move overseas?
Retired pay continues and is deposited to your U.S. bank account, but a united states navy retired member must update DFAS and TRICARE with the foreign address. TRICARE Select works differently abroad, and TRICARE For Life only covers care in the United States and its territories. Notify both agencies within days of an overseas move.
Can a united states navy retired member be recalled to active duty?
Yes. Retirees on the Regular retired list can theoretically be recalled by order of the Secretary of the Navy, though it is rare and usually limited to specific skills or wartime needs.
Fleet Reserve members (who have completed 20 years but not 30) are in an inactive duty status and are somewhat more likely to be recalled than someone fully united states navy retired.
Conclusion: Take Command of Your Retirement
Leaving the Navy does not mean leaving your benefits behind — it means managing them yourself.
- Retirement pay is calculated at 2.0% (BRS) or 2.5% (High-3) per year of service — verify yours in myPay
- Enroll in TRICARE retiree coverage within 90 days, and plan for Medicare at 65
- Elect SBP carefully — it is one of the few decisions you cannot reverse later
- File your VA claim to access tax-free compensation and possible CRDP or CRSC
Being united states navy retired puts you in a community of hundreds of thousands of veterans who earned these benefits. Life united states navy retired comes with responsibilities, but also real rewards. Your next step: create your myPay and VA.gov accounts this week, and book your retiree ID card appointment before your terminal leave ends.
Fair winds and following seas — now go secure what you earned.
