The Official 2027 COLA: 3.6%

The 2027 cost-of-living adjustment (COLA) is 3.6%. The Social Security Administration (SSA) announced it on October 14, 2026, up from 2.8% for 2026.

VA disability compensation rises by the same 3.6%, and you do not need to apply or take any action to receive it. Military.com reports that a 10% rating goes up by about $6.50 per month. For any other rating, multiply your current monthly rate by 1.036 to estimate your 2027 payment. Use the VA disability rating calculator if you need your combined rating first. VA's 2027 rate table and its exact effective date are not confirmed in the sources behind this page, so treat your result as an estimate. The VA disability guide covers how ratings and payments work.

Dependency and Indemnity Compensation (DIC) rises by about $61 per month, according to Military.com.

Military retirees on the standard plan get about $36 more per month for each $1,000 of monthly retired pay, which is 3.6% of $1,000. Retirees under Career Status Bonus (CSB)/Redux get about $26 more per $1,000. Their COLA is one percentage point lower, so 3.6% minus 1 point leaves 2.6%. If you retired during 2026, your 2027 COLA is prorated based on the quarter you retired.

The sections below were written as a forecast, so wherever they say estimate, the official 3.6% figure now applies.

When the 2027 COLA Reaches Your Account

VA disability compensation and military retired pay with the 2027 cost-of-living adjustment (COLA) are scheduled to arrive Dec. 31, and survivor annuities follow on Jan. 4. The increase takes effect Dec. 1, but nobody is paid that day, according to Military.com. The December payment settles Dec. 31 under the Treasury payment calendar.

Social Security increases begin with January 2027 payments. Supplemental Security Income (SSI) recipients see the raise Dec. 31, because the Jan. 1 payment moves up ahead of the holiday.

Treat every VA figure as an estimate until VA publishes official rates. Congress must pass a bill each year to raise disability compensation and survivor benefits. As of mid-October, the bills for this year sat in committee with Congress on recess, though lawmakers have passed the adjustment every year for decades.

Three groups can see a smaller or different net change:

  • Redux retirees. Retirees who took the Career Status Bonus get a COLA one percentage point lower, or 2.6% this round, per the Defense Department.
  • Retirees drawing VA pay and retired pay. Retired pay is generally reduced by the VA amount. Concurrent Retirement and Disability Pay (CRDP) lets retirees rated 50% or higher collect both, per the Defense Finance and Accounting Service (DFAS). Combat-Related Special Compensation (CRSC) has separate rules, so identical ratings can produce different income changes.
  • Medicare enrollees. Keeping TRICARE For Life generally requires Part A and Part B. Social Security typically deducts Part B premiums, so a higher 2027 premium would absorb part of that increase. VA disability compensation never has Part B deducted.

Run your rating through the VA disability rating calculator for your estimate, and read the rate rules in our VA disability guide.

Understanding the 2027 VA Compensation Increase

Veterans receiving VA disability compensation can expect a notable increase in their benefits starting in 2027. This forecasted adjustment aligns with the anticipated cost-of-living adjustment (COLA) for Social Security. The increase is designed to help veterans keep pace with inflation and rising living costs.

The VA compensation rates are adjusted annually based on the COLA, which is determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2027, early predictions suggest a higher-than-average increase, reflecting current economic trends.

Impact on VA Disability Ratings

Veterans with service-connected disabilities should be aware that the forecasted increase will directly affect their monthly compensation. For example, a veteran with a 50% disability rating currently receiving $1,041.82 per month could see this amount rise significantly.

To understand how your specific disability rating will be impacted, use our VA Disability Rating Calculator. This tool can help you estimate your new compensation amount based on the projected COLA increase.

Planning for Financial Stability

With the anticipated increase in VA compensation and Social Security benefits, veterans should consider how this additional income can be used to enhance their financial stability. This might include paying down debt, increasing savings, or investing in long-term financial goals.

Staying informed about these changes is crucial. Regularly check updates on the VA claims process and disability ratings to ensure you are maximizing your benefits.

Next Steps for Veterans

Veterans should monitor official announcements from the VA and Social Security Administration regarding the final COLA figures for 2027. These updates will confirm the exact percentage increase and effective dates.

Consider consulting with a financial advisor or a veteran service officer to plan effectively for the upcoming changes. They can provide personalized advice based on your unique financial situation and help you make the most of your increased benefits.