What Is the 2027 COLA Increase for Veterans?

In 2027, disabled veterans and military retirees are projected to receive a 3.6% cost-of-living adjustment (COLA) to their monthly payments. This annual increase is tied to the Consumer Price Index (CPI) and helps benefits keep pace with inflation. The Social Security Administration typically announces the official COLA in October, which the Department of Veterans Affairs (VA) and Department of Defense (DoD) then apply to eligible benefits.

The 3.6% increase will apply to VA disability compensation, military retirement pay, and related survivor benefits. For most veterans, this means a noticeable monthly boost starting with January 2027 payments.

Which Benefits Will Increase and by How Much?

The COLA applies to several key benefits:

  • VA Disability Compensation (38 CFR § 3.21): All veterans with a service-connected disability rating will see their monthly payments rise by 3.6%.
  • Military Retirement Pay (10 U.S.C. § 1401a): Retired service members will receive the same percentage increase in their gross retired pay.
  • Dependency and Indemnity Compensation (DIC): Surviving spouses and dependents receiving DIC will also get the adjustment.

For example, a veteran with a 100% disability rating receiving $3,737.85 per month in 2026 would see their payment increase to about $3,871.42 in 2027. Use the VA Disability Rating Calculator to estimate your new monthly amount.

What Should Veterans and Retirees Do Next?

While the COLA is automatic, you should take these steps:

  • Verify your payment: Check your January 2027 payment statement to ensure the increase is applied. If you notice discrepancies, contact the VA (1-800-827-1000) or DFAS for retirees.
  • Update your budget: Adjust your household budget to reflect the higher income, especially if you rely on these benefits for essential expenses.
  • Monitor official updates: The final COLA percentage and payment schedules will be confirmed by the VA and DoD in late 2026. Find updates on the VA claims hub and military retirement hub.

No new forms or applications are needed to receive the COLA. The increase is applied automatically to all eligible beneficiaries.

How COLA Is Calculated and Why It Matters

The annual COLA is determined by changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), as outlined in 38 U.S.C. § 5305. This ensures that VA disability and retirement payments keep up with inflation, protecting your purchasing power.

COLA increases can vary from year to year. For reference, the 2026 COLA was 3.2%. The 3.6% projected for 2027 reflects ongoing inflationary pressures. Even small percentage increases can add up over time, especially for those with higher disability ratings or long service careers.

Where to Find More Information and Get Help

For more on how COLA affects your specific benefits, see our explainer index. If you have questions about your disability rating, visit the disability ratings hub. For retirement planning tools, check the BAH calculator and other resources.

If you believe your payment is incorrect or you have not received the COLA adjustment by February 2027, contact the VA or DFAS immediately. Keep your direct deposit and contact information up to date to avoid delays.