2025 COLA Increase for Veterans, Military Retirees, and Social Security Recipients
In 2025, military retirees and disabled veterans are set to receive a 2.5% increase in their monthly payments, thanks to the annual Cost of Living Adjustment (COLA). This adjustment, which is tied to inflation, ensures that government payments keep pace with rising costs of consumer goods. While this year's 2.5% increase may seem modest compared to the higher adjustments in recent years (3.2% in 2024 and 8.7% in 2023), it remains close to the average increase of around 2.6% over the last decade.
The Social Security Administration officially announced this COLA increase, which is based on the Consumer Price Index (CPI). The CPI measures the cost of various goods and services compared to the previous year. When the cost increases, so do benefits like Social Security, military retirement pay, and VA disability payments. This adjustment is a crucial part of ensuring that government benefits don't lose value over time due to inflation.
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For military retirees, the increase means that for every $1,000 of retirement pension they receive each month, they will see an additional $25. However, those who retired under the Career Status Bonus (CSB/Redux) plan will see a slightly smaller increase—about $15 for every $1,000 due to a reduction in COLA for this group. Survivors receiving Survivor Benefit Plan payments will see their payments increase at the same rate as retirees.
Disabled veterans will also benefit, with payments rising by about $4.28 per month for those with a 10% disability rating and $93.45 for veterans with a 100% rating. Survivors of disabled veterans receiving Dependency and Indemnity Compensation (DIC) will also see their benefits go up in 2025.
In addition to military retirees and disabled veterans, this COLA increase affects Social Security recipients and civil service retirees, who will see a similar 2.5% rise in their monthly checks. Social Security beneficiaries, for example, will gain approximately $50 extra per month on average.
This COLA increase, while smaller than some recent years, plays a vital role in maintaining the purchasing power of millions of Americans relying on government benefits amidst the ever-changing economic landscape.
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