Millions of veterans are set to receive a boost to their disability benefits next year after the federal government announced a 3.6 percent cost-of-living adjustment for 2027, but some recipients say the increase will not be enough to compensate for their rising everyday expenses. The 3.6 percent COLA announced by the Social Security Administration on Wednesday will also apply to Department of Veterans Affairs (VA) disability compensation once Congress passes the required legislation and it is signed into law. The adjustment will be the largest since 2023 and follows increases of 2.8 percent for 2026 and 2.5 percent for 2025.
For veterans receiving VA disability compensation, the increase could range from roughly $6.50 more per month for someone with a 10 percent disability rating to about $142 more for a veteran rated 100 percent without dependents. But, Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, said there’s lingering frustration for veterans. But here's what frustrates me,” Ryan said.
It doesn't measure whether someone can actually afford to live.” More than 6 million veterans receive VA disability compensation. The COLA is particularly important because VA disability compensation is a tax-free monthly benefit for eligible veterans with service-connected medical conditions. The amount received depends partly on the veteran's disability rating and eligible dependents.
COLA is intended to help benefits maintain purchasing power as prices rise. So a larger COLA doesn’t necessarily mean you will be benefitting. It instead reflects the inflation on everyday costs that you’ve already been dealing with.
For veterans without dependents, applying the 3.6 percent adjustment to the existing 2026 disability rates will create the following increases: These are estimates, not the official rates as the VA has not yet released its final 2027 compensation tables. But based on the information currently released, a veteran rated at 100 percent with a spouse and one child is estimated to receive $4,474.47 per month in 2027, compared with $4,318.99 in 2026. That’s an increase of about $155.48.
Military.com said that Special Monthly Compensation and Dependency and Indemnity Compensation for survivors will rise 3.6 percent, while military retirees generally will receive another $36 per month for each $1,000 of military retirement pension. However, if tensions continue to rise, it could be possible the 3.6 percent bump won't match the pricing increases beneficiaries experience.” For some recipients, the issue is not whether their checks are increasing, but whether the additional money will cover the expenses they encounter each month. "The COLA never really keeps up with inflation.
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