Here’s a great synopsis of why the REDUX retirement plan is a BAD idea for military members:
By Tom Philpott
Career counselors advise against it. Financial experts say it’s a poor deal. Economists estimate that a typical enlisted member with 20 years of service will cut the lifetime value of his or her retirement by $309,000.
Read the rest of the article by clicking the title, but taking the REDUX option of a one-time $30,000 (taxable) payment, has a dramatic impact on your total lifetime income.
Another great information source is Office of the Secretary of Defense Military Retirement Comparison site.
As a commander, I refused to sign off on a REDUX payment until the member had viewed this site and been counseled about the implications of accepting the payment.
In 2 years I never successfully talked anyone out of taking the payment!