Update: The Social Security Administration (SSA) has announced that the 2026 Cost-of-Living Adjustment (COLA) will increase by 2.8%.
The announcement shows the first time the COLA rate increased year-over-year since 2021 (2025 COLA increase: 2.5%). The last time we saw COLA increase from the previous year, it was the first of three historic jumps due to rising inflation. This announcement also reveals a reversal of the trend of lowering inflation.
2026 COLA Payment Information
- Retired military veterans, VA disability pay recipients, and surviving family members receiving VA benefits will see pay increases effective December 1, 2025.
- Updated Social Security benefits will begin with December benefits, which are paid out in January of 2025.
- Updated federal Social Security Insurance (SSI) payments will start on Dec. 31, 2025.
New Medicare premium increases for 2026 will also be released in December.
Individuals and Programs Impacted by COLA
- Retired military veterans
- Disabled veterans – See VA Disability Rate Tables
- Veterans’ pension benefits – Veterans Pension Rate Tables
- Survivor benefit annuitants – Survivors’ Pension Rate Tables
- Surviving families of veterans – Parents’ Dependency and Indemnity Compensation (DIC) Tables
- Social Security recipients
- Federal civilian retirees
- Supplemental Security Income
- Social Security Disability Insurance
- Eligibility for Medicare Extra Help and Medicaid
- Federal and state food and housing assistance programs
How COLA Is Determined
The Bureau of Labor Statistics’ Consumer Price Index (CPI-W) determines COLA increases. It is based on the percentage increase of the CPI-W from the third quarter of the previous year versus the current year’s third quarter (July, August and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA because they already received a military pay raise in January.
COLA Increase History Since 1975
| Year | COLA |
|---|---|
| 2026 | 2.8% |
| 2025 | 2.5% |
| 2024 | 3.20% |
| 2023 | 8.70% |
| 2022 | 5.90% |
| 2021 | 1.30% |
| 2020 | 1.60% |
| 2019 | 2.80% |
| 2018 | 2.00% |
| 2017 | 0.30% |
| 2016 | 0.00% |
| 2015 | 1.70% |
| 2014 | 1.50% |
| 2013 | 1.70% |
| 2012 | 3.60% |
| 2011 | 0.00% |
| 2010 | 0.00% |
| 2009 | 5.80% |
| 2008 | 2.30% |
| 2007 | 3.30% |
| 2006 | 4.10% |
| 2005 | 2.70% |
| 2004 | 2.10% |
| 2003 | 1.40% |
| 2002 | 2.60% |
| 2001 | 3.50% |
| 2000 | 2.50% |
| 1999 | 1.30% |
| 1998 | 2.10% |
| 1997 | 2.90% |
| 1996 | 2.60% |
| 1995 | 2.80% |
| 1994 | 2.60% |
| 1993 | 3.00% |
| 1992 | 3.70% |
| 1991 | 5.40% |
| 1990 | 4.70% |
| 1989 | 4.00% |
| 1988 | 4.20% |
| 1987 | 1.30% |
| 1986 | 3.10% |
| 1985 | 3.50% |
| 1984 | 3.50% |
| 1983 | N/A |
| 1982 | 7.40% |
| 1981 | 11.20% |
| 1980 | 14.30% |
| 1979 | 9.90% |
| 1978 | 6.50% |
| 1977 | 5.90% |
| 1976 | 6.40% |
| 1975 | 8.00% |
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Jon Rehagan covers financial topics and military news, aimed at helping those who've served our country and everyday civilians