The military retirement cost-of-living adjustment (COLA) for 2025 is a crucial measure that ensures the purchasing power of retired military members keeps pace with inflation. This annual adjustment is based on the Consumer Price Index (CPI) and is designed to help retirees maintain their quality of life despite rising living costs.
The COLA is a vital benefit for military retirees, as it helps them preserve the value of their retirement income. Without COLA adjustments, retirees would face a gradual erosion of their purchasing power over time, making it increasingly difficult to afford basic necessities. The 2025 COLA is particularly important given the current inflationary environment, which has seen the cost of living rise at a faster pace than in recent years.
