For 2025, retired military members will receive a $25 increase for each $1,000 of military retirement pension they receive each month.
Retirees who entered military service on or after Aug. 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will have any COLA increases reduced by a percentage point, so they will receive a smaller increase of $15 per $1,000 in 2025.
Military retirees and VA beneficiaries aren't the only ones who benefit from the COLA increase. Civil Service retirees and Social Security recipients will also receive the 2.5% bump in their monthly checks.
For Social Security recipients, the increase will mean about an extra $50 per month for the average beneficiary, according to the administration.