Retired Military Members, Veterans to Get 2.8% Pay Raise in 2026: Here’s What It Means

Veteran 2.8% Pay Raise in 2026: Military retirees, disabled veterans, and other federal benefit recipients will soon get a small rise in their monthly payments. The Social Security Administration has announced a 2.8% Cost of Living Adjustment (COLA) that will take effect in 2026.

New Increase Slightly Higher than Last Year

The new 2.8% raise is slightly higher than the 2.5% increase from 2025, but still far below the big 8.7% hike in 2023 that followed high inflation. These COLA increases are based on the Consumer Price Index (CPI), which measures how prices for common goods and services change. When prices rise, payments go up too. If prices stay the same, benefits don’t change.

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Under the new rate retired service members will get about $28 more for every $1,000 they receive in monthly pension payments starting in 2026. While the increase is small, it can still help cover higher costs for things like groceries, electricity, and medical bills. But the officials noted that the increase is not meant to match every rising expense exactly.

Special Rules For Redux Retirees

Retirees who joined the military on or after August 1, 1986, and chose the Career Status Bonus or Redux retirement plan, will see a smaller increase. Their adjustment will be $18 per $1,000 of monthly pay because their plan includes a built-in rule that reduces COLA by one percentage point each year.

Families getting money through the Survivor Benefit Plan (SBP) will also get a 2.8% raise. This helps their payments stay steady with rising prices and supports them after losing a loved one.

Disability and Survivor Payments also Rising

Disabled veterans will get a 2.8% increase in their VA disability pay. Those rated at 10% will get about $4.91 more each month, while veterans rated at 100% with no dependents will receive around $107.28 extra. This raise helps veterans handle rising daily expenses and shows the government’s continued support for those with service-related disabilities.

The Dependency and Indemnity Compensation (DIC) for spouses of veterans who passed away due to service-related issues will also go up by 2.8%.

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Service members who retire in 2025 will receive a prorated COLA in 2026, depending on when they leave the military and which retirement system they are under. Those who retire earlier in the year will get a slightly higher adjustment compared to those retiring later.