Social Security 2027: VA disability payments to increase alongside COLA. Here’s how much the adjustment amounts to

Veterans receiving disability and retirement benefits will see their payments rise by 3.6% starting December 1, 2026, due to the largest annual cost-of-living adjustment (COLA) in years. This adjustment is tied to the Social Security Administration's decision based on the Bureau of Labor Statistics' September inflation data, which showed an increase in inflation to 3.7%, up from 3.4% in August.

The extra $36 per month benefit is calculated on a $1,000 pension. While veterans are generally younger than typical Social Security recipients, financial planner Robert Laura acknowledges that the increase is welcome, but it does not cover the rising costs many veterans face. Veterans' benefits are tax-free, and they won't experience an increase in Medicare premiums to offset the COLA.

Over 8 million veterans in the U.S. receive these benefits, and unlike other Americans, their VA disability benefits are subject to the Veterans' Compensation Cost-of-Living Adjustment Act, which must be passed by Congress and signed into law by President Donald Trump.