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Welcome to MOAA’s COLA Watch page, where you’ll find a monthly update on the inflation figures used to set the cost-of-living adjustment (COLA) for payments received by military retirees, disabled veterans, Social Security beneficiaries, and many others receiving federal compensation.

2027 COLA: 3.6%

The September 2026 CPI-W, released Oct. 14, was 330.654, 4.2% above the baseline of 317.265. This means the average CPI-W for the last three months of the fiscal year (July, August, and September) was 328.746.

The baseline is subtracted from this figure, with the result divided by the baseline (and rounded to the nearest tenth), to determine the 2027 COLA of 3.6%: (328.746-317.265)/317.265 = 3.62%

For more, see "How Your COLA Is Calculated" below.

The average of the last three months of the fiscal year (328.746) will be used as the baseline to determine the 2028 COLA. The October 2026 CPI-W figure, the first of the new fiscal year, will be announced Nov. 10.

The Chart

Why MOAA Tracks COLA

Protecting the value of service-earned benefits has long been a pillar of MOAA’s advocacy. MOAA has led previous efforts to rebuff budget plans seeking to reduce or eliminate COLA for military retirees, many of which have taken root shortly after large increases.

The nature of a higher COLA is to preserve purchasing power for retirees, VA beneficiaries, and surviving spouses – not to fund other government programs.

[JOIN THE FIGHT: Visit MOAA’s Legislative Action Center]

The Math: How Your COLA Is Calculated

The yearly cost-of-living adjustment is made by comparing the average CPI-W from monthly reports in July, August, and September of the current fiscal year to the average for the same months of the year prior. MOAA also provides a regular calculation for the monthly COLA change: (Monthly CPI-Yearly baseline CPI)/Yearly baseline CPI.

Remember, active duty pay raises are calculated differently. Learn more about CPI on the BLS web page.