How does military retirement pay work?

I heard you get half of your basic pay over the last three years of your service. But what I never understood is if that would be a lump sum payment or would that be considered your pension payed out over a period of time? Thanks in advance.

Public Comments

1. Monthly check
2. You get paid half of the average of your last three years on a monthly basis. Lets say you got $2000 per month for the first year $2200 per month for the second year. $2400 per month for the third year Add them together, divide by three and you get $2200. Divide that in half and you get $1100 per month. You get that for the rest of your life, with cost of living increases added in. When you start getting Social Security you get that on top of your military retirement pay since you paid into SS too. Lump sum payments are seen if you get a medical separation or if you fail to get promoted and separated with less than 18 years of service. No where as good a deal as getting a retirement.
3. USAFishnut is right. The only thing to add, is that it is only looking at base-pay. My base-pay was usually a third to a quarter of my takehome pay.