Will military retirement pay increase in 2024? Here’s how much vets’ monthly checks will grow

Military service retirees and disabled veterans will receive increased monthly checks next year due to the annual cost of living adjustment, but the increase will be less than half the 2023 rate of 8.7%.

The Social Security Administration announced that the yearly increase in benefits for 2024 would be 3.2%. Government retirement and disability programs that provide benefits to veterans are required by law to implement increases at the same rate.

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Congress passed the Veterans Compensation COLA Act earlier this year, requiring the Department of Veterans Affairs to apply the same cost-of-living increase as the Social Security Administration.

The 2024 percentage is significantly less than this year’s number because inflation has slowed down. The rate for next year appears low compared to the two adjustments before it (8.7% in 2023 and 5.9% in 2022), but it is still higher than the 2.6% average for the two decades prior.

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Will military retirement pay increase in 2024? Here’s how much vets’ monthly checks will grow

Military retirees will receive $32 dollars more for every $1,000 military pension they receive monthly. However, those who joined the military on or after Aug.1, 1986 and chose the Career Status Bonus (CSB/Redux retirement plan) will see a smaller increase.

This plan offered retirees a lump sum coupled with smaller monthly payments. These veterans will therefore see the COLA increase reduced by one percentage point, so they will only receive a $22 increase for each $1,000 next year.

Veterans’ family members receiving Survivor Benefit Plan checks will receive increases with the same percentage as those of military retirees.