The Social Security Administration has announced the 2026 Cost of Living Allowance (COLA) increase, and it brings good news for Veterans, military retirees, and their families. Beginning in 2026, most federal beneficiaries—including VA disability recipients, military retirees, and Social Security beneficiaries—will see a 2.8% pay raise. This is slightly higher than the 2.5% COLA increase implemented in 2025, reflecting ongoing inflation and rising consumer costs.

For the military community, understanding how the COLA works—and how it affects different retirement and disability programs—is essential. Here’s a clear breakdown of what to expect in 2026.

Why COLA Is Increasing in 2026

The annual COLA adjustment is determined by the Department of Labor using the Consumer Price Index (CPI).

The CPI uses a broad sampling of the cost of consumer goods and expenses. When there’s an increase in the CPI compared to the previous year, COLA will see an increase. When there’s no CPI increase, there will not be a COLA increase. That’s the simple math.

For 2026, inflation data triggered a 2.8% raise, helping Veterans and retirees maintain their purchasing power.

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2026 VA Disability Pay Increase

VA disability recipients will see their monthly tax-free compensation rise by 2.8%, matching the federal COLA rate.

This increase applies across all VA disability ratings, from 10% to 100%, and also impacts Special Monthly Compensation (SMC).

Those receiving VA disability payments can find the new 2026 pay rates here.

2026 COLA for Military Retirees

For most military retirees, the 2026 COLA means a noticeable bump in monthly retirement income. Here’s how the increase breaks down:

Standard Military Retirement (High-3, Final Pay)

Retirees under the traditional High-3 or Final Pay systems will receive $28 more per month for every $1,000 of retired pay.

For example, a retiree receiving $2,500 per month will receive approximately $70 more per month.

CSB/REDUX Retirees

Retirees who entered the military on or after August 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will have any COLA increases reduced by a percentage point, so they will receive a smaller increase of $18 per $1,000 in 2026.

Survivor Benefit Plan (SBP) Recipients

Survivors receiving Survivor Benefit Plan (SBP) payments will receive increases to their payments by the same amount as retirees.

Recently Retired Service Members (2025 Retirees)

For those who retired in 2025, the 2026 COLA will be slightly reduced.

This prorated amount is determined by the quarter of 2025 in which retirement occurred and may also be adjusted based on the member's service entry date and chosen retirement plan.

Other Federal Retirees

Civil Service retirees and Social Security recipients will also get the 2.8% bump in their monthly retirement checks.

What This Means for Veterans and Retirees

The 2026 COLA increase offers meaningful financial support, particularly during a period of elevated living costs. Whether you’re receiving VA disability compensation, military retired pay, SBP survivor benefits, or Social Security, this raise helps protect long-earned benefits from the effects of inflation.

With rising inflation continuing to affect everyday expenses, this year’s 2.8% raise helps protect VA disability compensation, military retirement pay, and so forth. Whether you served decades ago or recently transitioned, these adjustments ensure your benefits continue to keep pace with the cost of living.

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