He Took a Military Pension Lump Sum. His Monthly Retired Pay Stayed Lower Until Social Security’s Full Retirement Age.

When military retirees select a lump sum payment from their future pension, their monthly retired pay remains reduced until they reach Social Security's full retirement age of 67. The lump sum is equivalent to either 25% or 50% of the present value of the pension they would otherwise receive between retirement and turning 67. This reduction in military retired pay lasts for several years, potentially two decades, before returning to the full pension amount at Social Security's full retirement age.

Retirees must decide whether to take the lump sum or keep the full monthly pension, taking into account their personal financial situation and goals. It is crucial to distinguish between the lump sum decision and the Social Security claiming age, as they are separate considerations.