1. What is AF NAF Retirement Annuity?

The AF NAF (Armed Forces Non-Approved Fund) retirement annuity is a pension benefit calculation for Pakistan Armed Forces personnel. It provides financial security after retirement based on service years and highest three-year average salary.

2. How Does the Calculator Work?

The calculator uses the AF NAF annuity formula:

Where:

• \( HI3 \) — Highest three-year average salary (PKR)
• \( Service \) — Total years of service
• \( 0.01 \) — 1% annuity rate multiplier

Explanation: The formula calculates 1% of the highest three-year average salary multiplied by years of service to determine the annual retirement annuity.

3. Importance of Retirement Planning

Details: Proper retirement planning ensures financial stability after service. Understanding your expected annuity helps in making informed decisions about post-retirement life and additional investments needed.

4. Using the Calculator

Tips: Enter your highest three-year average salary in PKR and total years of service. Both values must be positive numbers with service years typically between 20-35 years for armed forces personnel.

5. Frequently Asked Questions (FAQ)

Q1: What is included in HI3 calculation?
A: HI3 includes basic pay plus all regular allowances averaged over the highest three consecutive years of service.

Q2: Is there a minimum service requirement?
A: Typically, a minimum of 20 years of service is required to qualify for AF NAF retirement benefits.

Q3: How often is the annuity paid?
A: The annuity is typically paid monthly, calculated as 1/12th of the annual amount.

Q4: Are there any deductions from the annuity?
A: Yes, standard deductions include income tax (if applicable) and any outstanding loans or advances.

Q5: Can the annuity amount increase over time?
A: Annuity amounts may be adjusted periodically through government notifications to account for inflation and cost of living increases.