It’s official: military retired pay is going up 3.6% next year.
The Social Security Administration announced the 2027 cost-of-living adjustment on Oct. 14, and by law military retirees and veterans who get VA disability compensation receive the same increase. It is up from 2.8% this year and 2.5% in 2025, and it is the largest bump since 2023.
The adjustment is tied to inflation, measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers. It is meant to keep benefits from losing value, so it isn’t a raise in the usual sense.
What 3.6% adds to your retired pay
| Gross monthly retired pay now | Increase | New monthly amount |
|---|---|---|
| $1,500 | +$54 | $1,554 |
| $2,000 | +$72 | $2,072 |
| $2,500 | +$90 | $2,590 |
| $3,000 | +$108 | $3,108 |
| $4,000 | +$144 | $4,144 |
| $5,000 | +$180 | $5,180 |
| $6,500 | +$234 | $6,734 |
These are gross figures. Federal tax withholding and any Survivor Benefit Plan premium come out after, so what lands in your account will rise by a little less. Your exact amount will appear on your retiree account statement in myPay.
Who gets it, and who gets less
- Most military retirees, including those under the legacy High-3 and the Blended Retirement System, get the full 3.6%.
- Retirees who took the Career Status Bonus under REDUX get the COLA minus one percentage point, or 2.6%, under the rules of that plan.
- Survivor Benefit Plan annuitants see their annuities adjusted by the COLA as well.
- Veterans receiving VA disability compensation, dependency and indemnity compensation and some other VA benefits get 3.6%. A 2024 law ties those increases to the Social Security rate, according to Military Times. We worked out the new VA rates by disability rating here.
- About 72 million Social Security beneficiaries get the same 3.6%, roughly $75 a month for the average benefit.
More than 8 million military retirees and veterans receive monthly payments affected by the adjustment, the National Guard Association of the United States said.
When it shows up
The increase takes effect with December benefits, so some retirees and veterans will see it in the payments that arrive at the turn of the year. If you also get Social Security, your notice with the new amount will be posted in your my Social Security account in late November, a few weeks before paper notices go out by mail.
The Social Security Administration’s official COLA details are on its cost-of-living page, and DFAS posts the retired pay adjustment on its retired military page.
Where these numbers come from
- Social Security Administration: Cost-of-living adjustment information
- Military Times: Here’s the 2027 cost-of-living increase for retirees, veterans
- NGAUS: Retirees, veterans to get 3.6% COLA in 2027
- DFAS: Retired military pay
Featured image: Senior Airman Brenden Beezley / U.S. Air Force via Wikimedia Commons, public domain (cropped)
