Military retirees and disabled veterans will receive 2.5 percent increases to their monthly paychecks for 2025, thanks to the annual cost of living adjustment (COLA) that’s tied to inflation.

While that may look low compared to recent years’ adjustments of 3.2 percent in 2024, 8.7 percent in 2023, and 5.9 percent in 2022, it’s still close to the average of about 2.6 percent for the past decade.

The U.S. Department of Labor determines the annual COLA by measuring the Consumer Price Index, or CPI, a measurement of a broad sampling of the cost of consumer goods and expenses. The CPI is compared to the previous year; if there is an increase, there is a COLA. If there is no increase, there is no COLA, and benefits remain the same — they don’t decrease. For 2025, retired military members will receive a $25 increase for each $1,000 of military retirement pension they receive each month.

Retirees who entered military service on or after Aug. 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will have any COLA increases reduced by a percentage point, so they will receive a smaller increase of $15 per $1,000 in 2025. Recipients of Survivor Benefit Plan payments will receive increases to their payments by the same amount as retirees.

Service members who retired in 2024 will receive a slightly reduced COLA in 2025. Their COLA is prorated based on which quarter they retired in (January-March, April-June, etc.). The prorated amount may also be adjusted based on when a member entered the service and which retirement plan they elected.

Disabled veterans will also receive increases to their benefit payments in the upcoming year. Department of Veterans Affairs (VA) disability checks will go up about $4.28 per month for those with a 10 percent rating and $93.45 for those rated at 100 perent who don’t have dependents.

Meanwhile, the VA has announced its 2025 Veterans Pension income limits. The new limits change veterans’ individual rates. The actual amount paid depends on a veteran’s income; the pension payment makes up the difference.

Veterans of wartime service who are 65 or older and on a limited income may qualify for a veteran’s pension without being disabled.

More information is available at military.com.