Last Updated: November 14, 2026 Reading Time: 7 min
For most people retiring today, the Survivor Benefit Plan (SBP) costs 6.5% of the retired pay they choose to cover. On the illustrative 2026 20-year pensions below, an E-7 with full coverage pays $201.87 a month and an O-5 pays $385.88. The premiums stop once you have paid 360 of them and reached age 70.
Below are the dollar figures by rank, the survivor annuity each premium buys, and the age your last payment comes due.
How SBP Cost Is Calculated in 2026
For standard spouse or former-spouse coverage, DFAS takes 6.5% of the base amount each month. The base amount is the slice of retired pay you choose to cover. Pick full coverage and the base is your entire gross retired pay.
The 6.5% rate applies to members who entered service on or after March 1, 1990. Members who entered before that date, disability retirees and Reserve (non-regular) retirees pay the lower of 6.5% or an older threshold formula, which DFAS computes for them.
You can elect any base from $300 a month up to your full retired pay, and for spouse coverage the survivor annuity is 55% of whatever base you pick. When retired pay gets a cost-of-living adjustment, the base amount rises with it, so the premium and the future annuity rise together.
The premium also comes out of retired pay before federal income tax is figured, so if you owe federal tax on your retired pay, your out-of-pocket cost is lower than the gross premium. How much lower depends on your bracket.
SBP Cost by Rank: 20-Year Retired Pay on 2026 Pay
The table below uses the illustrative 20-year pensions from our military retirement pay at 20 years post. Those pensions rest on a High-36 proxy built from the DFAS 2026 basic pay table (the average of the over-18 and over-20 cells). They are illustrations, not anyone's actual retired pay. Your own premium is 6.5% of your own base amount.
Legacy High-3 (50% of High-36), full coverage
| Rank at 20 years | Retired pay /mo | SBP premium /mo (6.5%) | Premium /yr | Survivor annuity /mo (55%) |
|---|---|---|---|---|
| E-6 | $2,633.85 | $171.20 | $2,054.40 | $1,448.62 |
| E-7 | $3,105.75 | $201.87 | $2,422.44 | $1,708.16 |
| E-8 | $3,451.65 | $224.36 | $2,692.32 | $1,898.41 |
| O-4 | $5,254.95 | $341.57 | $4,098.84 | $2,890.22 |
| O-5 | $5,936.63 | $385.88 | $4,630.56 | $3,265.15 |
Blended Retirement System (40% of High-36), full coverage
| Rank at 20 years | Retired pay /mo | SBP premium /mo (6.5%) | Survivor annuity /mo (55%) |
|---|---|---|---|
| E-6 | $2,107.08 | $136.96 | $1,158.89 |
| E-7 | $2,484.60 | $161.50 | $1,366.53 |
| E-8 | $2,761.32 | $179.49 | $1,518.73 |
| O-4 | $4,203.96 | $273.26 | $2,312.18 |
| O-5 | $4,749.30 | $308.70 | $2,612.12 |
How the cells were built: premium = retired pay × 0.065, rounded to the cent. Annual premium = the rounded monthly premium × 12. Annuity = retired pay × 0.55, rounded to the cent; the law rounds a payable annuity down to the whole dollar. Every figure is gross, in 2026 dollars, before any COLA.
The BRS rows are a comparison. Few members retiring at exactly 20 years in 2026 are under BRS, because a 2006 entrant stayed in the legacy system unless they opted in during 2018. The rows show what the same career would cost to cover on a BRS pension.
When SBP Premiums Stop: 360 Payments and Age 70
SBP has a paid-up rule. Once you have made 360 monthly premium payments and reached age 70, the premiums stop. Coverage stays in force for your spouse at no further cost. Meeting only one of the two conditions doesn't end the payments.
That makes your retirement age the variable that sets your lifetime cost:
- Retire at 40. Your 360th payment and your 70th birthday land at about the same time. You pay 360 premiums.
- Retire at 38. You reach 360 payments at 68 but keep paying to 70. That is about 384 payments. On the E-7 example, $201.87 × 384 = $77,518.08 before COLA increases.
- Retire at 45. You turn 70 after 300 payments and keep paying until the 360th, at 75.
Here is the 360-payment total for each legacy row, in today's dollars. COLAs raise the premium over time, and they raise the annuity by the same percentage.
| Rank at 20 years | Premium /mo | 360 payments (2026 dollars) |
|---|---|---|
| E-6 | $171.20 | $61,632.00 |
| E-7 | $201.87 | $72,673.20 |
| E-8 | $224.36 | $80,769.60 |
| O-4 | $341.57 | $122,965.20 |
| O-5 | $385.88 | $138,916.80 |
Compare that total with the annuity. The E-7 survivor would collect $1,708 a month after rounding, so the 360-payment total equals about 43 months of the annuity. The SBP vs life insurance post works through that break-even and how SBP compares with a term policy.
Covering Less Than Full Retired Pay
Full coverage isn't required. You can elect a reduced base amount, as low as $300 a month. At $300, the premium is $19.50 and the survivor annuity is $165 a month.
A reduced base trades a smaller premium for a smaller survivor check. It makes sense mainly when other income would carry your spouse, such as their own pension or a large TSP balance. Your spouse normally must sign a notarized concurrence on DD Form 2656 for anything less than full spouse coverage.
The 6.5% rate covers spouse and former-spouse elections. Insurable-interest coverage, for a beneficiary who isn't a spouse or child, costs far more: 10% of retired pay plus 5% for each full five years the beneficiary is younger than you, up to 40%. Our SBP enrollment trap post covers that case.
What SBP Cost Does Not Include
The premium is the only cost DFAS deducts for SBP, but a few things change what your household nets. Because the premium comes out before federal income tax, a retiree in the 22% bracket gets part of each premium dollar back in lower taxes.
If you waive all of your retired pay to receive VA compensation, there is nothing to deduct the premium from. If you draw Combat-Related Special Compensation, the premium comes out of that. Otherwise, you can have the VA deduct the premium from your compensation (DD Form 2891), or pay DFAS directly from its monthly bill. And the survivor annuity is taxable income to your spouse, while a life insurance payout generally is not.
Calculate Your SBP Cost
The free SBP Calculator takes your gross monthly retired pay, election type, elected base amount and retirement age. It returns the premium, the survivor annuity and the paid-up timeline for your own numbers. Run your SBP numbers →
For the whole retirement check, with SBP, a VA rating and a GS salary in one view, use the Military Retirement Income Calculator. To compare legacy and BRS pensions first, try the BRS vs High-3 Calculator.
Frequently Asked Questions
How much does SBP cost per month?
Full spouse coverage costs 6.5% of your gross monthly retired pay for regular (non-disability) retirees who entered service on or after March 1, 1990. On the illustrative 2026 20-year pensions in this post, that runs from $171.20 a month (E-6) to $385.88 (O-5) under the legacy High-3 system.
When do I stop paying SBP premiums?
When you have made 360 monthly payments and reached age 70. Both must be true. A retiree who starts paying at 38 keeps paying to 70 (about 384 payments); one who starts at 45 pays until the 360th payment at 75. Coverage continues after the last premium.
Does the SBP premium go up every year?
In most years, yes. When retired pay gets a COLA, the base amount rises with it, which raises the 6.5% premium and the 55% survivor annuity by the same percentage. A year with no COLA brings no increase.
Is SBP cheaper if I cover only part of my retired pay?
Yes. You can elect a base amount as low as $300 a month, which costs $19.50 a month and pays a $165 survivor annuity. Your spouse normally must sign a notarized concurrence for less than full coverage.
Is the SBP premium tax-deductible?
It comes out of retired pay before federal income tax is figured, so it lowers your taxable retired pay. You don't claim it as a separate deduction.
Related Resources
- SBP Calculator: Your premium, annuity and paid-up date
- Military Retirement Pay at 20 Years by Rank: The pensions this table is built on
- SBP vs Life Insurance: Break-even and the term-life comparison
- SBP Enrollment Trap for Single Veterans: Insurable-interest costs and how to cancel
Sources: DFAS Survivor Benefit Plan cost, 10 U.S.C. 1452 (6.5% rate, paid-up rule in 1452(j), COLA in 1452(h)), 10 U.S.C. 1447 ($300 minimum base, 1447(6)(C)), 10 U.S.C. 1451 (55% annuity), 10 U.S.C. 1448 (spousal concurrence), 26 U.S.C. 122 (premium excluded from income), DFAS Paying for SBP, DFAS 2026 military basic pay table. Retired pay figures are FedTools illustrations on an assumed High-36, not estimates of any member's retirement. This article is general information, not financial advice.