Ever wonder what a retired four-star general actually takes home? It’s a question that pops up a lot, especially when someone like General Jack Keane is all over the news as a Fox News analyst or testifying before Congress. People see the medals and the uniform, but the math behind a 37-year military career is actually pretty fascinating—and a bit more complex than just a single monthly check.
Honestly, the general jack keane pension conversation usually starts with his rank. We’re talking about a man who was the Vice Chief of Staff of the Army. That’s the number two spot. When he hung up the uniform in 2003, he didn’t just walk away with a gold watch. He walked away with a lifetime of benefits that most corporate CEOs would envy.
The Raw Math of a Four-Star Pension
Let's get into the weeds of the numbers. Since Keane entered the service way back in 1966, he falls under the "Final Pay" retirement system. This is the old-school, high-reward version of military retirement.
For guys like Keane who served over 20 years, the calculation is basically $2.5%$ of their final basic pay multiplied by their years of service. He did 37 years.
👉 See also: 500 million korean won to usd: What Most People Get Wrong
Do the math: $37 \times 2.5 = 92.5%$.
That means his pension is roughly 92.5% of his final active-duty basic pay. Now, there’s a catch. Federal law (specifically 5 U.S.C. 5308) often caps the basic pay for senior officers at "Level II of the Executive Schedule." Even with that cap, a retired four-star general in 2026 is looking at an annual pension that comfortably clears $240,000 a year.
And that’s before we even talk about the annual Cost-of-Living Adjustments (COLA). For 2026, veterans saw a 2.8% increase in their benefits. While most people are struggling with the price of eggs, these pensions are indexed to inflation, keeping that purchasing power rock solid.
Why the Pension is Just the Start
If you think Keane is living solely on that $20,000-ish monthly pension check, you're looking at the wrong bank account. Most four-stars don't just go fishing. They go to boardrooms.
Keane has been a powerhouse in the private sector. Look at the roster:
- General Dynamics: He served as a director here for years. Proxy statements from a while back showed him pulling in over $250,000 annually just from this one board seat, often including stock awards.
- AM General: He’s served as Executive Chairman for the folks who make the Humvee.
- United States Antimony Corporation: As of late 2025, he joined their board too. The retainer for a board member there is around $65,000, plus extra for chairing committees or attending meetings.
- IP3 International: He co-founded this nuclear energy consulting firm.
When you stack a quarter-million-dollar military pension on top of multiple six-figure board seats and consulting fees through his firm, GSI Consulting, you aren't just looking at a "retired soldier." You're looking at a high-net-worth individual.
The "Double Dipping" Myth vs. Reality
People love to throw around the term "double dipping" like it’s a crime. In the military world, it’s just the standard "second career."
The logic is pretty simple: the military wants to keep talent for 30+ years, so they offer a massive pension to make up for the fact that you spent three decades moving your family every two years and getting shot at. Once you’re out, the government doesn't care if you work for a defense contractor or open a bakery.
However, there is a nuance. If a retired officer takes a civilian job within the federal government, there used to be strict limits on receiving both a full salary and a full pension. But for someone like Keane, who stayed in the private sector and advisory roles, he gets to keep every penny of that general jack keane pension while stacking his private earnings on top.
Taxpayers and the "Star Creep"
There’s actually a fair bit of debate about this in D.C. groups like the Project On Government Oversight (POGO) have pointed out that "star creep"—the tendency for the military to have more high-ranking generals now than during WWII—costs a fortune. Because of changes in the law back in 2007, generals who serve past 40 years can actually receive a pension that is more than their final basic pay.
Keane retired just before those specific 2007 changes took full effect for his own retirement date, but he paved the way for the current system where a 40-year general can take home 100% of their top pay for life.
What Most People Get Wrong
You’ll see some clickbait sites claiming Keane’s net worth is in the billions. That’s almost certainly nonsense. While he is very wealthy by any normal standard, he isn't a tech billionaire. Most estimates of his wealth are tied up in the value of his consulting business and his stock holdings in defense companies.
The real "value" of his pension isn't just the cash—it's the survivor benefits and healthcare.
- TRICARE for Life: He and his family get top-tier healthcare that is virtually free compared to what a civilian CEO pays for a private plan.
- Survivor Benefit Plan (SBP): This allows a portion of the pension to continue to a spouse after the veteran passes away. It’s essentially a government-subsidized life insurance policy that never expires.
Key Takeaways for the Curious
If you're looking at how the general jack keane pension works to understand your own military future or just to track where tax dollars go, here is the breakdown:
✨ Don't miss: Grayscale Digital Large Cap Fund: What Most People Get Wrong
- Rank and Years Matter Most: A four-star with 37 years of service (like Keane) hits a "multiplier" that captures nearly all of their base pay.
- The Cap is Real: Even if the math says a general should get $300k, federal statutory caps on executive pay often limit the actual payout, though COLA increases slowly raise this ceiling over time.
- The "Revolving Door" is Profitable: The pension is the floor, not the ceiling. Board positions in the defense industry often double or triple a retired general's annual income.
- Inflation Protection: Unlike a 401(k), this pension cannot "run out" and it goes up every year the economy gets more expensive.
To see how these numbers apply to different ranks or to calculate a projected retirement, you should check the DFAS (Defense Finance and Accounting Service) official pay scales for 2026. They provide the exact "High-3" average tables that determine these payouts. If you are planning your own military retirement, ensure you have looked into the Blended Retirement System (BRS) versus the legacy system, as the math has changed significantly for anyone who joined after 2018.