Military retirees and disabled veterans will receive 2.8% increases to their monthly paychecks for 2026, thanks to the annual Cost of Living Adjustment, or COLA, tied to inflation. The 2.8% raise for 2026 is up from 2.5 % in 2025 after a string of raises as high as 8.7% in 2023.

As an example, a military retiree who receives $2,500 in retired pay will see a COLA increase of about $70 a month. For a veteran receiving $1,500 per month in benefits, the increase would be about $42 in 2026.

Veterans receiving disability payments and military retirees will see a new cost of living adjustment (COLA) starting in January.

After years of volatile cost-of-living adjustments, millions of veterans and military retirees are set to receive a 2.8% increase in their monthly benefits starting December 1, 202