Military retirees and disabled veterans will receive a 2.5% increase in their monthly paychecks for 2025, thanks to the annual Cost of Living Adjustment (COLA) tied to inflation. Although this may seem low compared to recent years’ adjustments of 3.2%, 8.7%, and 5.9%, it is still close to the average of about 2.6% for the past decade.
The Social Security Administration announced the COLA increase on Thursday, stating that most government disability and retirement payments are required by law to increase annually by the same amount as inflation.
The Department of Labor determines the annual COLA by measuring the Consumer Price Index (CPI), which reflects changes in consumer goods and expenses. If there is an increase in CPI compared to the previous year, there is a COLA; otherwise, benefits remain unchanged.
For military retirees in 2025, each $1,000 of military retirement pension will see a $25 increase per month. However, those who entered military service after August 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will have their COLA increases reduced by one percentage point.
Survivors receiving Survivor Benefit Plan payments will also receive increases equal to those received by retirees.
Disabled veterans will see an increase in their benefit payments as well. VA disability checks will go up approximately $4.28 per month for those with a 10% rating and $93.45 for those rated at 100% without dependents.
Other federal retirees and beneficiaries such as Civil Service retirees and Social Security recipients will also receive a 2.5% bump in their monthly checks due to the COLA increase.
For Social Security recipients specifically, this means an extra $50 per month on average according to administration estimates.