Military retirees and disabled veterans will see their monthly checks increase by 8.7% effective January 1, 2023, thanks to an annual adjustment to the federal Cost of Living Allowance (COLA) due to inflation; the Social Security Administration announced on Thursday, October 13, 2022.
This will be the largest increase since 1981 where Retirees/Disabled Veterans saw a 5.9% increase in 2022 and 1.3% in 2021; the annual adjustment has averaged 1.9% for the last 10 years.
NOTE: Not all federal retirees will see the new amount added to their checks. Those in the Federal Employee Retirement System (FERS) will receive a 7.7% COLA starting in January.