Retirement nets you an honourable discharge, but not all honourably discharged personnel are retirees. If you enlist for three, four, etc. years, perform your duties like you're supposed to, and decide not to reenlist, you're discharged when your contract expires. You receive an honourable discharge based on the character of your service. Someone who retires still receives such a discharge, but now we're talking about someone who has reenlisted multiple times, and will be collecting a pension.
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