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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.
2026 COLA: 2.8%
The September 2025 Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), released Oct. 24, was 318.139, 3.0% above the FY 2025 baseline of 308.729. This means the average CPI-W for the last three months of the fiscal year (July, August, and September 2024) is 317.265.
The baseline is subtracted from this figure, with the result divided by the baseline (and rounded to the nearest tenth), to determine the 2026 COLA of 2.8%: (317.265-308.729)/308.729 = 2.76%
For more, see "How Your COLA Is Calculated" below.
The average of the last three months of the fiscal year (317.265) will be used as the baseline to determine the 2027 COLA.
The federal government shutdown delayed October 2025 figures, which had been scheduled for a Nov. 13 release. There are no plans to release those figures; November 2025 figures are scheduled for a Dec. 18 release.
The Chart
For more, see "How Your COLA Is Calculated" below.
The average of the last three months of the fiscal year (308.729) will be used as the baseline to determine the 2026 COLA.
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.
More COLA Articles
- Could Congress Come for Your COLA? Here’s Why MOAA Stands Ready to Fight
- Why a COLA Spike Could Put Retirees’ Pay Adjustment at Risk
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