Whether you are an officer or an enlisted person, you will retain the rank at which you retire from the United States Air Force. This is true regardless of whether you have held that rank for several years or were promoted the same day you retired. You retain the right to use your military title in social and commercial situations within the U.S. as long as using your title doesn't imply the Air Force's endorsement of a commercial enterprise or otherwise bring discredit to the Air Force. You retain this right even if you were promoted immediately before retiring. However, your retirement pay is affected by how long you have held your rank.
When using your rank on a business card, correspondence or in other written form after you have retired, you must designate your status as a retiree, i.e. Col. (Ret.) Jane Doe, USAF.
Retirement Pay is Another Story
When it comes to retirement pay, the amount of time you have held your rank can factor in if you enlisted on or after Sept. 8, 1980. This is because retirement pay is based on your 36 highest months of base pay (those who enlisted or were commissioned before then use their final base pay). Since both your rank and your time in grade affect your base pay throughout your military career, the amount of time you've held your current rank can make a significant difference in your retirement pay because it has had an impact on your pay throughout your time of service. If you've held your current rank for three years, your retirement will be based entirely on that pay grade, barring unusual circumstances that may have caused your base pay to be higher in prior years.
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The Department of Defense maintains a retirement calculator that will help you calculate your retirement pay. Air Force retirement pay is based on the average base pay of your highest 36 months (high-36) and the number of years you have served. For each year you have served, you will receive 2.5 percent of your high-36 for retirement pay. The exception is if you participated in the REDUX plan, in which case you must reduce the percentage by 1 percent per year for every year less than 30 served.
Your high-36 or final pay is based solely on your base pay. Other forms of military compensation, such as housing allowance or flight pay, do not factor into your retirement pay.
Officers Who Started as Airmen
Air Force officers who began their careers as airmen and then transitioned into the officers corps are an exception. You must have served as a commissioned officer -- though not necessarily at the same rank -- for at least 10 years to retire at your officer rank. Those who retire prior to serving 10 years as an officer retire at their prior enlisted rank for retirement pay purposes. You continue to use the officer rank at which you retired for social and commercial purposes, within Department of Defense guidelines.