As the 2026 calendar year approaches, there are projections indicating a potential decrease in the cost-of-living adjustment (COLA) received by military retirees, VA disability recipients, and others. While the estimate suggests an increase of 2.1%, it is lower compared to previous years, marking a downward trend.
The calculation for COLA relies on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), using data from the final three months of the fiscal year. This adjustment is crucial for ensuring that retiree pay and VA disability benefits keep up with rising prices and maintain their value.
MOAA has a long history of advocacy on COLA issues, including overturning detrimental provisions and fighting against potential reductions in retiree benefits. The organization remains vigilant in monitoring any proposals that could impact COLA adjustments and is dedicated to protecting the value of service-earned benefits for military retirees and veterans.
For more updates on COLA adjustments, financial planning, and advocacy efforts, stay informed through The MOAA Newsletter and advocacy news page. Consider utilizing MOAA’s Financial Calculators for informed decision-making on retirement planning, investments, and other financial matters.
Attribution:
This article was summarized and republished from the original source.
Please check the original article here: https://www.moaa.org/content/publications-and-media/news-articles/2025-news-articles/finance/cola-update-2026-retiree-pay-adjustment-trending-toward-5-year-low/.