What’s New for Military Pensions in 2025?

In 2025, military retirees and disabled veterans will see their monthly paychecks increase by 2.5%. This raise is lower than recent years but still close to the average increase over the last decade. The Social Security Administration just announced this Cost of Living Adjustment (COLA), which is tied to inflation. The COLA is calculated using the Consumer Price Index (CPI), a measure of consumer goods and expenses. If there's an increase, there's a COLA. If not, benefits stay the same. Retired military members will get an extra $25 per $1,000 of their monthly pension. Those with the Career Status Bonus (CSB/Redux retirement plan) will see a smaller increase of $15 per $1,000. Survivors on the Survivor Benefit Plan get the same increase as retirees.

Service members who retired in 2024 will get a slightly smaller COLA in 2025, depending on their retirement quarter and plan. VA disability payments will also go up. For instance, a vet with a 10% rating will see about $4.28 more per month, while a 100% rated vet without dependents will get an additional $93.45. The COLA benefits many, including civil service retirees and Social Security recipients, who will also get a 2.5% bump in their monthly checks. This means about $50 extra per month for the average Social Security beneficiary.

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