| They aren’t underpaid, at least not on the low end. A raw recruit (E1) gets $23,000 per year. Housing, food, work clothing and healthcare is paid for. After tax, it’s like ~$1,500 in completely discretionary income. This is why you get 19 year old new recruits buying new sports cars. They can afford it. The smart ones start socking away money while they are young. A new officer (O1) gets $43,000 per year. If they are married they can live off base and get a housing allowance. If lucky enough to get stationed in SF, that’s another $4,017 per month. So just base pay and allowance is $91,000. And the housing allowance is tax free, so it’s equivalent to making more than $100,000 per year. Then add on top sign on or enlistment bonuses especially for in demand MOSs, relocation allowances, etc. Then you put in 20 years and you get a pension you can live on and healthcare for the rest of your life. They aren’t making Silicon Valley money but it puts most members in firmly middle class territory. |
Many of these folks have second homes, a small RE portfolio, and more!