Military retirement vs UK's system?

Brad Barrett discussed the differences between the U.S. and U.K. military retirement systems in an episode of "ChooseFI". Here are some key points:

1. U.S. System: In the U.S. Navy, someone like Meg can retire after 20 years of service and receive a pension equivalent to 50% of her highest three years' salary immediately upon retirement. This benefit starts right away without needing to wait until a typical retirement age, such as 65 [1].

2. U.K. System: The U.K. Royal Navy's pension system is more complex and not as immediately lucrative as the U.S. system. In the U.K., every service member is entitled to a pension even if they serve only one day, but it accrues differently. For example, Matt describes the U.K. system as giving fractions of a pension for each year of service, and it's based on several pension schemes which can change. This makes it difficult to understand and less straightforward than the U.S. system. Pensions typically start at older ages like 55, 65, or 68, depending on the scheme [2].

Moreover, the guest mentioned that while the British military is generally better in terms of work-life balance and family support, the U.S. system provides clearer financial advantages for long-term retirement planning [1].

These insights reflect substantial differences in terms of simplicity, clarity, and the immediacy of benefits between the two systems, with the U.S. having a more favorable immediate retirement payout system.