The term “2025 military retirement pay increase” refers to the scheduled adjustment to retirement pay for members of the U.S. military who retire in or after 2025. This increase is designed to keep pace with inflation and ensure that military retirees maintain a reasonable standard of living.
The increase is based on the Consumer Price Index (CPI), which measures the average change in prices for goods and services purchased by consumers. The CPI is calculated by the Bureau of Labor Statistics and is used to adjust a variety of government programs, including military retirement pay.