This is one of the most common crossroads reservists face, and the right answer depends on factors that are specific to each person's medical condition, career timeline, and financial situation. That said, here are the stable, well-established differences that matter most when comparing the two paths.
A medical retirement (through the Disability Evaluation System, involving a Medical Evaluation Board and Physical Evaluation Board) is based on whether a condition makes you unfit for continued service, and pay is calculated either by disability percentage or years of service, whichever the branch determines applies, subject to a floor and ceiling set by law. A regular reserve retirement at 20 qualifying years gives you a pension that typically begins at age 60 (or earlier under certain deployment-related provisions), calculated using your reserve retirement points rather than a disability rating.
Official 2026 VA monthly compensation, including the 2.8% COLA increase.
Dependent add-ons start at a 30% rating. Child-only and dependent-parent rates: see the full 2026 pay chart.
| Rating | Monthly (2026, incl. 2.8% COLA) |
|---|---|
| 10% | $180.42 |
| 20% | $356.66 |
| 30% | $552.47 |
| 40% | $795.84 |
| 50% | $1,132.90 |
| 60% | $1,435.02 |
| 70% | $1,808.45 |
| 80% | $2,102.15 |
| 90% | $2,362.30 |
| 100% | $3,938.58 |
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Analyze my claim free →The key tradeoffs: medical retirement pay can start immediately regardless of age, but the amount is often lower than a full 20-year retirement would eventually pay, especially if your disability rating is on the lower end. A regular 20-year retirement generally yields a larger, more predictable pension later in life, plus continued TRICARE and other benefits tied to retiree status. Importantly, medically retiring does not eliminate your ability to file for VA disability compensation — that is a separate system from military retirement pay, governed by 38 CFR Part 4 and 38 USC Chapter 11. Whether you retire medically or regularly, you can still file a VA claim for any service-connected conditions using VA Form 21-526EZ, and the VA rating is independent of whatever rating the military's PEB assigns.
One nuance worth understanding: if you are found unfit and medically separated (not retired) with a disability rating under 30%, you may receive severance pay instead of retired pay, which affects VA offset rules differently than a true medical retirement. It's worth clarifying with your career counselor or JAG whether your situation would result in retirement or separation, since that changes the calculus significantly.
Because this decision affects retirement pay calculation, TRICARE eligibility, VA disability offset rules, and survivor benefit elections, it is not a decision to make from general guidance alone. The concrete next step is to request a consultation with a JAG legal assistance attorney or a Physical Evaluation Board Liaison Officer (PEBLO) who can walk through the specific dollar and eligibility differences based on your actual rating and years of service before you decide.
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