The 2027 COLA will raise VA disability, retirement, and survivor payments.

New rates appear automatically in January 2027—no action required.

COLA helps benefits keep up with inflation and rising living costs.

Check your updated payment amount in January and adjust your budget.

2027 COLA Increase and VA Disability: Updated Payment Rates

What Is the 2027 COLA and Why Does It Matter?

The Cost-of-Living Adjustment (COLA) is an annual increase in federal benefits designed to keep pace with inflation. For 2027, the Social Security Administration will announce the official COLA percentage in late 2026, but estimates suggest a moderate increase based on recent inflation trends. This adjustment directly impacts VA disability compensation, military retirement pay, and certain survivor benefits.

COLA is authorized under 38 U.S.C. § 5312 and applied automatically to VA disability and other federal benefits. The increase ensures your payments maintain their real-world value, helping you keep up with rising costs for essentials like food, housing, and healthcare.

How the 2027 COLA Impacts VA Disability Payments

If you receive VA disability compensation, your monthly payment will increase automatically when the 2027 COLA takes effect. The new rates will show up in your January 2027 payment. You do not need to file a new claim or submit extra paperwork.

For example, if the 2027 COLA is set at 2.5%, a veteran with a 100% disability rating receiving $3,737.85 per month in 2026 would see their payment increase to approximately $3,831.30 per month in 2027. Actual rates will be published by the VA after the official COLA announcement. For detailed rate tables, visit our VA disability hub.

COLA applies to all VA disability ratings (0%-100%)
Dependency and Indemnity Compensation (DIC) for survivors is also adjusted
No action is required by beneficiaries

Use our VA Disability Rating Calculator to estimate your new combined payment amount for 2027.

Military Retirement and Survivor Benefits: What Changes?

Military retirees and survivors receiving benefits such as Survivor Benefit Plan (SBP) annuities will also see their payments rise with the 2027 COLA. The increase is calculated using the same percentage as Social Security and VA disability adjustments.

For retirees, the COLA applies to monthly retirement pay, ensuring your pension keeps up with inflation. Survivors receiving DIC or SBP annuities will benefit from the same percentage increase. For more on retirement and survivor benefits, visit our military retirement hub.

COLA is applied to gross retired pay before deductions
Survivor annuities (SBP, DIC) are adjusted automatically
Check your January 2027 payment for the updated amount

What Should Veterans and Families Do Now?

No action is needed to receive the 2027 COLA increase—payments adjust automatically. However, you should:

Review your January 2027 payment to confirm the new rate
Update your budget to reflect higher income
Monitor the official COLA announcement in late 2026 for the exact percentage
Contact the VA or DFAS if you do not see the expected increase

For more information on COLA and other benefit changes, see our explainers or visit the VA claims hub for updates.

Where to Find Updated Rates and More Help

The VA will publish the official 2027 disability compensation tables after the COLA is announced. You can find these on the VA website or through our disability ratings hub. Military retirees can check new pay tables at DFAS.mil.

If you have questions about your specific benefits or need help understanding your new payment, reach out to a Veterans Service Officer (VSO) or contact the VA directly. Staying informed ensures you receive every dollar you’ve earned.