The 2025 Federal Retiree COLA (Cost-of-Living Adjustment) is an annual adjustment to the monthly annuity payments of federal retirees, based on the increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Similar adjustments are made to Social Security benefits and military pensions. For 2025, the COLA is expected to be announced in October 2024 and will be effective for benefits paid in January 2025.
The COLA is an important benefit for federal retirees as it helps to ensure that their retirement income keeps pace with inflation and maintains its purchasing power. Over the long term, the COLA has helped to protect the retirement security of millions of federal employees and their families.
