United States (Brussels Morning Newspaper) – Veterans and military retirees will receive a 2.8 percent cost-of-living adjustment (COLA) to their disability pay and pensions starting December 2025, marking an increase from the previous year. This boost aligns with inflation measures to help maintain the purchasing power of those who served.
Cost-of-Living Adjustment Announcement
The 2026 cost-of-living adjustment (COLA) stands at 2.8 percent, reflecting inflation trends measured by the Consumer Price Index. This figure is slightly higher than the 2.5 percent COLA awarded in 2025 and follows a trend of periodic increases made to assist veterans and military retirees in managing rising living expenses.
The adjustment applies primarily to disability compensation and pensions for veterans and military retirees, ensuring their monthly benefits keep pace with economic realities. Payments will increase on December 1, 2025, for eligible recipients.
Importance of the COLA for Veterans and Retirees
The COLA adjustment is a vital mechanism that protects the income of veterans and military retirees from inflationary pressures. Disability compensation supports those injured or medically affected by service, while military retirement pay sustains former service members after their active careers.
Such increases are essential as veterans often face unique financial challenges, including healthcare costs, that may rise faster than average inflation.
Calculation Based on Consumer Price Index
The 2.8 percent increase corresponds to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), reflecting September 2024 inflation data. This official measure guides annual COLA decisions for various federal veterans benefits.
Adjustments are designed to keep benefits aligned with the cost of necessities such as food, housing, and healthcare, which impact veterans disproportionately.
War Pensions Uprating for 2026
Separately, war pensions and related benefits overseen by the Ministry of Defence will increase by 1.7 percent effective from April 2026, according to updated government guidance. This uprating applies to a range of benefits including disablement pensions, attendance allowances, war widows’ pensions, and supplementary allowances.
The UK government’s annual war pensions review ensures that veterans receiving these benefits see their payments keep pace with changes in living costs, albeit at a slightly lower rate than the general COLA.
Future Outlook and Support for Veterans
The rising cost of living across the UK and globally underscores the significance of these annual increases. Analysts frequently call for ongoing attention to veterans’ financial wellbeing, advocating for reviews of benefit adequacy amid fluctuating inflation and healthcare costs.
The government and veterans’ organisations continue to engage on policies that aim to provide sustainable support to military communities in the face of economic pressures.
