Military Retirement Pay Increase 2026: New Amounts and Effective Dates

Military retirees, disabled veterans, and other federal beneficiaries will receive a 2.8% increase in their monthly payments starting December 1, 2025, effective for the 2026 year.

This Cost of Living Adjustment (COLA) helps benefits keep pace with inflation and protects purchasing power amid rising living costs. The 2.8% rise is a modest increase from 2025’s 2.5% and much smaller than the 8.7% bump in 2023.​

Read: Will All Retirees Get a COLA Increase in 2026? Here’s What to Expect

Retired military members will see an additional $28 for every $1,000 of monthly pension.

However, those who began service on or after August 1, 1986, and selected the Career Status Bonus (CSB/Redux) retirement plan will have COLAs reduced by 1 percentage point, resulting in a smaller increase of $18 per $1,000.​

Survivors receiving benefits through the Survivor Benefit Plan will also get the full 2.8% boost to maintain inflation protection for families of deceased service members.

Disabled veterans’ monthly VA compensation payments will rise similarly; for example, a veteran rated 10% disabled will get about $4.91 more per month, and those rated 100% with no dependents about $107.28 more.​

Dependency and Indemnity Compensation (DIC) for surviving spouses of disabled veterans will increase by 2.8%, ensuring ongoing support matches inflation.

Additionally, service members retiring in 2025 will receive a prorated COLA in 2026 based on their retirement date, with earlier retirees getting larger adjustments.​

This adjustment reinforces the federal government’s commitment to supporting military families, veterans, and retirees by offsetting inflation-driven cost increases on essentials such as groceries, utilities, and healthcare.​

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