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Another year, and that means more annual Cost of Living Adjustments (COLAs) for military across the board – active duty, reservists, military retirement, and VA disability.

Active Duty & Reservist Military Pay Increases

Cost of living adjustment

The military received a nice 3% pay increase for 2021 – see the 2021 military pay chart.

Military Retirement COLA

Military retirement also received a raise, effective December 1, 2020. Per a prior announcement from the feds, military retirees received a 1.3% Cost of Living Adjustment for 2021. This is less than the 1.6% military retirement COLA awarded to retirees for 2020, but it should result in the same purchasing power – Pursuant to 10 U.S. Code § 1401a, military retirement is subject to an annual Cost of Living Adjustment (COLA) based upon the Consumer Price Index. DoD has a web page with a history of the military retirement COLAs from 1998 to present.

And as explained in our Survivor Benefit Plan (SBP), the same Cost of Living Adjustment applies to SBP payments and premiums.

VA Disability Rate Increases

Veterans Administration rates increased by 1.3% in 2021, and the new VA Disability rate tables are on the VA web site.

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cost of living adjustment

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