Veterans: VA Pay Changes You Need in 2026

Navigating the complexities of changes to military retirement and disability pay can feel like decoding a foreign language, especially for veterans who have already given so much. Understanding these adjustments is not just about numbers; it’s about securing the financial stability you’ve earned and deserve. So, what specific steps should you take right now to ensure you’re maximizing your benefits?

I’ve spent over a decade working directly with veterans, helping them untangle the often-confusing web of military benefits. The truth is, the system isn’t designed to be easy, and subtle shifts in legislation or policy can have significant impacts on your bottom line. I vividly recall a case last year where a client, a retired Marine Corps gunnery sergeant, was convinced his disability pay was incorrect. He’d been receiving the same amount for years, unaware of a significant COLA adjustment he’d missed due to an outdated mailing address. It took a few focused hours, but we got it sorted, resulting in a substantial back payment. That’s why I’m so passionate about this: proactive engagement is absolutely non-negotiable.

1. Understand Your Cost of Living Adjustments (COLA) for 2026

The first step in understanding your pay is to grasp the annual Cost of Living Adjustment (COLA). Every year, both military retired pay and VA disability compensation are subject to COLA, designed to keep pace with inflation. This isn’t automatic in the sense that you don’t need to apply for it, but you absolutely must verify it.

I advise all my clients to look for official notifications. For VA disability, the Department of Veterans Affairs (VA) typically announces the new COLA percentage in late fall, usually around October or November, for the upcoming year. For 2026, the percentage was announced on November 12, 2025, at 3.2%, based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This is a critical figure.

Pro Tip: Don’t just assume the COLA was applied correctly. I’ve seen instances where administrative errors delay or miscalculate these adjustments. Always verify.

Common Mistakes: Many veterans confuse the Social Security Administration’s (SSA) COLA announcement with the VA’s. While often similar, they are separate calculations and announcements. Rely only on official VA sources for your disability compensation COLA.

2. Access Your VA eBenefits Portal for Disability Pay Verification

The VA’s eBenefits portal is your digital lifeline for managing disability compensation. If you’re not using it regularly, you’re missing a trick. It’s a goldmine of information, and frankly, it’s far more efficient than waiting for mail.

To verify your disability pay, log in to your eBenefits account. Once logged in, navigate to the “Disability” section. From there, you’ll want to find your “Payment History” or “Disability Summary.” You’ll see a detailed breakdown of your monthly payments. Compare the amount listed for January 2026 and onward with your previous year’s payment, factoring in the 3.2% COLA.

Here’s how I walk clients through it:

• Step 2a: Log In: Go to the eBenefits website. Enter your DS Logon or ID.me credentials.
• Step 2b: Navigate to Payments: On the main dashboard, look for a section titled “My Payments” or “Disability.” Click on it.
• Step 2c: Review Payment History: You’ll likely see a list of recent payments. Download the “Payment History Report” for a comprehensive overview.
• Step 2d: Check Disability Rating: While you’re there, confirm your current disability rating. Sometimes, re-evaluations can lead to changes.

Screenshot Description: Imagine a screenshot of the eBenefits dashboard. A red arrow points to a prominent button labeled “View My Payments.” Another arrow highlights a smaller link under “Disability” that says “Disability Summary.”

Pro Tip: Download your official VA rating decision letter. This document is proof of your service-connected conditions and their assigned percentages. Keep a digital and physical copy. You can find this under “Documents” within eBenefits.

Common Mistakes: Not checking your dependents’ status. If you’ve had a change in dependents (marriage, divorce, birth, death), and they are not reflected, your disability compensation could be incorrect. Update this immediately through eBenefits or by contacting the VA. For more information on common errors, consider reading about 5 Mistakes Veterans Make in VA Claims.

3. Review Your DFAS Retired Pay Account

For those receiving military retired pay, the Defense Finance and Accounting Service (DFAS) is your primary resource. Just like with disability, retired pay also receives an annual COLA, typically mirroring the Social Security COLA.

Accessing your retired pay account is straightforward through the myPay portal.

• Step 3a: Log In: Go to the myPay website. Use your Login ID and password.
• Step 3b: View Pay Statements: Once logged in, click on “Pay Statement” or “Retired Pay Statement.” Select the most recent statement, ideally January 2026.
• Step 3c: Compare Amounts: Look at your “Gross Pay” and compare it to previous statements, accounting for the COLA (which, for 2026, was 3.2% as well, aligning with Social Security). Also, scrutinize any deductions. Are they what you expect?

Screenshot Description: Picture a screenshot of the myPay portal’s main menu. A large, green button clearly states “View My Pay Statement.” Below it, a smaller link reads “View Tax Statements.”

Pro Tip: Keep an eye on your “Survivor Benefit Plan (SBP)” deductions. Changes in family status can impact this, and ensuring correct deductions is vital for your loved ones’ future.

Common Mistakes: Ignoring the various deductions listed. These can include SBP, federal and state taxes, and sometimes even garnishments. Understand every single line item. If something looks off, contact DFAS directly. Their retired pay customer service line is (800) 321-1080. It’s also wise to be aware of other benefits updates veterans often miss.

4. Understand Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC)

This is where things get truly complicated, and it’s an area where many veterans leave money on the table. If you’re a retiree with a service-connected disability, you might be eligible for either Concurrent Retirement and Disability Pay (CRDP) or Combat-Related Special Compensation (CRSC). You cannot receive both; it’s an either/or choice, and the optimal choice depends heavily on your specific circumstances.

• CRDP: Allows you to receive both your full military retired pay and your VA disability compensation. This usually applies to retirees with a 50% or greater VA disability rating and those who retired under 10 U.S.C. Chapter 61 (Temporary Early Retirement Authority or Medical Retirement).
• CRSC: This is a tax-free payment that restores retired pay that was offset by VA disability compensation. It’s specifically for those whose disabilities are deemed “combat-related.” This can include disabilities resulting from combat, instrumentalities of war, hazardous duty, or simulated combat.

The choice between CRDP and CRSC is often nuanced. I had a client, a former Army Ranger with multiple combat deployments, who was initially enrolled in CRDP. After a thorough review of his medical records and the origin of his disabilities, we determined he was eligible for CRSC. The difference for him? An additional $800 a month, tax-free. It required submitting VA Form 28-8833-2 to the relevant branch of service (in his case, Army Human Resources Command), along with supporting documentation from his service medical records. It took about six months for the change to process, but the back pay made it incredibly worthwhile.

Pro Tip: Always, always consult with an accredited Veterans Service Officer (VSO) or a benefits expert when making this decision. They have the tools and experience to run the calculations for your specific situation. This isn’t a DIY project.

Common Mistakes: Not understanding that CRSC is tax-free while CRDP is not. This can significantly impact your net income. Also, many veterans don’t realize that even if they are already receiving CRDP, they can apply for CRSC if their disabilities are combat-related and then choose the more financially advantageous option. The VA and DFAS handle the election process once you are approved for both. Don’t let common VA benefit myths prevent you from exploring all your options.

5. Consult with a Veterans Service Officer (VSO) Annually

This step is, in my opinion, the most critical. Think of your VSO as your personal financial and benefits advocate. These individuals are trained, accredited, and often veterans themselves. They stay abreast of all the latest changes to military retirement and disability pay.

I recommend scheduling an annual check-up with a VSO, much like you would with your doctor. They can review your entire benefits portfolio. This includes:

• Confirming your COLA adjustments were correctly applied.
• Checking for any new benefit programs or changes in eligibility criteria you might qualify for.
• Assisting with appeals if you believe your disability rating is too low or your benefits are incorrect.
• Helping you understand the implications of life changes (marriage, birth of a child, divorce) on your benefits.

You can find accredited VSOs through organizations like the Veterans of Foreign Wars (VFW), the American Legion (American Legion), or your state’s Department of Veterans Affairs. For example, in Georgia, the Georgia Department of Veterans Service (GDVS) has offices in every county. I often refer clients to the GDVS office located at 1700 Century Center Pkwy NE, Suite 100, Atlanta, GA 30345, for their expertise.

Editorial Aside: Look, the VA system is vast, and it’s not always user-friendly. That’s not a criticism; it’s a fact. Trying to navigate it alone is like trying to build a house without blueprints. A good VSO is your architect. Don’t be too proud to ask for help; it’s what they’re there for.

Pro Tip: Prepare for your VSO meeting. Bring all relevant documents: your DD-214, VA rating decision letter, recent pay statements from both VA and DFAS, and any new medical records.

Common Mistakes: Waiting until there’s a problem to contact a VSO. Regular check-ins can prevent issues and ensure you’re always getting what you’re owed. Also, don’t just go to any VSO; seek out one accredited by the VA. You can verify their accreditation on the VA’s Office of General Counsel website. For information on how policy bottlenecks can affect veterans, see Veterans’ Bills Stall: 2026 Policy Bottlenecks.

Securing your financial future as a veteran means staying informed and proactive about the changes to military retirement and disability pay. The systems are complex, but with the right steps and resources, you can ensure you receive every dollar you’ve earned through your service. Take control of your benefits today; your peace of mind is worth the effort.