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iStockDisabled Veterans and Military Retirees to receive 2.8% pay raise in 2026 Disabled veterans and military retirees will see their monthly benefits increase by 2.8% in 2026, following the annual Cost of Living Adjustment (COLA) tied to inflation. This adjustment aims to help beneficiaries keep pace with rising living costs and maintain their purchasing power amid economic pressures.The Cost of Living Adjustment (COLA) is an annual increase in government disability and retirement benefits mandated by law to offset inflation’s impact. The Bureau of Labor Statistics measures the Consumer Price Index (CPI), tracking the cost of consumer goods and services. When the CPI increases compared to the previous year, a COLA is applied. If there is no increase, benefits remain flat but do not decrease.2026 COLA overviewThe 2026 COLA is set at 2.8%, up from 2.5% in 2025. This increase follows recent years of high COLA adjustments, including 8.7% in 2023. The raise will affect military retirees, disabled veterans, their survivors, and other federal beneficiaries like Civil Service retirees and Social Security recipients.Impact on military retireesRetirees will receive an additional $28 per $1,000 of monthly retirement pension for service entered before August 1, 1986.Those who joined service after August 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will get a reduced increase of $18 per $1,000.Retirees who retired during 2025 will receive prorated COLA increases based on their retirement quarter and plan election.Survivors collecting Survivor Benefit Plan payments will receive increases matching retirees.Example: A military retiree receiving $2,500 monthly pay can expect about a $70 increase per month starting in 2026.Live EventsDisabled veterans and survivorsDisabled veterans will receive proportional increases based on disability ratings.For example, veterans with a 10% rating will see an approximate $4.91 monthly increase, while those with a 100% rating without dependents will receive close to $107.28 more.Dependency and Indemnity Compensation (DIC) payments for surviving spouses will increase by 2.8% as well.Other applicable veteran support programs like clothing allowances will also see the raise reflected.Other federal beneficiariesSocial Security recipients (nearly 71 million people) will also receive a 2.8% increase, approximately $57 more per month on average for retirees.Civil Service retirees under the Civil Service Retirement System (CSRS) will get 2.8%, while those under the Federal Employees Retirement System (FERS) will receive a 2.0% increase.When to expect the increased paymentsVA disability compensation and related benefit increases will commence with payments on or after December 1, 2025. Military and Social Security beneficiaries will see the adjusted benefits in their January 2026 payments. Recipients do not need to apply; increases are automatic.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News on2026 COLA increaseConsumer Price IndexCost of Living Adjustmentmilitary retireesDisabled veteransCivil Service retireesSocial Security recipientsDepartment of Veterans Affairs (Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News on2026 COLA increaseConsumer Price IndexCost of Living Adjustmentmilitary retireesDisabled veteransCivil Service retireesSocial Security recipientsDepartment of Veterans Affairs(Catch all the US News, UK News, Canada News, International Breaking News Events, and Latest News Updates on The Economic Times.) Download The Economic Times News App to get Daily International News Updates....moreless
