Military Retiree COLA 2027: Retired Pay Rises 3.6%
What +3.6% does to retired pay
| Current retired pay | Full COLA (3.6%) | CSB/REDUX (2.6%) |
|---|---|---|
| $2,000 | $2,072 (+$72) | $2,052 (+$52) |
| $3,000 | $3,108 (+$108) | $3,078 (+$78) |
| $4,500 | $4,662 (+$162) | $4,617 (+$117) |
Gross amounts before deductions and allotments. The full adjustment applies to retirees under the Final Pay, High-36 (High-3) and Blended Retirement System formulas who were retired before 2026.
The exceptions worth knowing
CSB/REDUX. Members who took the Career Status Bonus under REDUX accepted a COLA set one percentage point below the CPI for life — 2.6% instead of 3.6% this cycle (with a one-time recomputation at age 62 that partially restores the difference).
First-year proration. If you retired during 2026, your first adjustment is partial — it reflects only the months since your retirement took effect, not the full 3.6%. Full adjustments start with the next cycle.
SBP. Survivor Benefit Plan annuities receive the same COLA percentage as retired pay, so an SBP annuity also rises 3.6% (2.6% where the underlying election is under REDUX rules).
Two contrasts in the same family of programs: military retired pay adjusts automatically — no annual act of Congress, unlike VA compensation — and the amount is set by DFAS from the same CPI-W series that produced Social Security's 3.6% (how the COLA is calculated). Your updated amount appears in your DFAS myPay account with the December statement.
Frequently asked questions
Does military retired pay get the same COLA as Social Security?
Yes — military retired pay is adjusted by the same CPI-based percentage, 3.6% for 2027, and unlike VA compensation it does not require a new act of Congress each year. The adjustment is effective December 1, 2026.
When does the first increased military retirement payment arrive?
Retired pay for December 2026 — the first month at the new rate — is scheduled to be deposited on December 31, 2026, because January 1 is a federal holiday (DFAS payment schedule).
Why is my increase less than 3.6%?
Two common reasons. Retirees under CSB/REDUX receive one percentage point less — 2.6% for 2027. And members who retired during 2026 receive a prorated first adjustment rather than the full percentage. Disability retired pay computations can also cap the effect for some Chapter 61 retirees.
Do Survivor Benefit Plan (SBP) annuities get the COLA too?
Yes. SBP annuities are adjusted by the same cost-of-living percentage as retired pay.
Sources: Defense Finance and Accounting Service (DFAS) retired-pay COLA practice and 2026–2027 payment schedule (December 2026 pay deposited December 31, 2026); 10 U.S.C. §1401a (retired pay adjustments, REDUX reduction). Dollar examples are arithmetic illustrations.