2026 Social Security Benefits for Veterans: SSDI and Retirement Planning

Finding an approach that fits your retirement needs

When it comes to timing your retirement and receiving your Social Security Benefits, there is no “one-size-fits-all” solution. These decisions depend on numerous factors related to your circumstances and objectives. The Social Security Administration (SSA) is a good place to start. With an online account, you can view earnings statements, receive personalized estimates of future benefits based on actual earnings, and use various calculators to help compare different scenarios.

Veteran Social Security Increases and Changes Coming in 2026

2026 Social Security COLA Increase

In 2026, Social Security is set to undergo significant updates, making it essential to stay informed as you plan. The Cost-of-Living Adjustment (COLA), which is intended to ensure benefits keep pace with inflation, was 2.8%. For military retirees, this adjustment mirrors changes in military pensions.

2026 Maximum Taxable Earnings

The maximum taxable earnings, known as the contribution and benefit base, rose to to $176,400. Income up to this amount will be subject to the 6.2% Social Security tax, paid by both employees and employers.

With these updates in mind, it may be time to evaluate your retirement strategy and consider how these changes could influence your financial future.

When am I Eligible for Full Social Security Benefits?

The first requirement to become eligible for Social Security benefits is to earn 40 credits, which means recording 40 quarters of earnings during which you paid Social Security taxes. The next requirement is reaching the age of eligibility. To slow the depletion of the Social Security Trust Fund, the 1983 Social Security Amendments raised the full retirement age (FRA) at which you are eligible to receive full Social Security benefits. For those born in 1960 or later, the FRA is 67, though you do not have to begin receiving Social Security at that time.  

At What Age Should I Begin Receiving My Social Security Benefits?

You can begin receiving benefits as early as 62, or as late as 70. However, if you elect to receive them at 62, they will be approximately 30 percent lower every month than if you waited until your full retirement age.

Conversely, if you defer receiving your benefits beyond your FRA, they will increase by 8 percent each year until you reach 70. To better compare these scenarios as you plan when to begin receiving Social Security, check out the table below:

So, is it better to take your benefits early, or wait? The answer depends on factors like your planned retirement age, whether you can retire without Social Security income, have a spouse to consider in your decision-making, and how your health may impact your life expectancy. A knowledgeable financial advisor can help you evaluate your options and make a decision aligned with your goals and circumstances.

When considering receiving Social Security benefits, ask yourself these questions:

• Do you intend to keep working? If you haven’t reached full retirement age, this could limit the benefits you receive now. 
• Do your family members typically live until an old age? If so, you may want to hold off on taking benefits.
• How is your health? If it’s poor, you may want to opt for an earlier start date than someone in good health.
• Do you have health insurance? Remember that Medicare doesn’t start until age 65.
• Do you qualify to receive benefits as a widow, widower or surviving divorced spouse? You may have other options to consider.
• Can you afford to wait beyond your full retirement age to receive benefits? If so, you may be eligible for delayed retirement credits, which could mean a higher benefit.
• Do you have family members that qualify for benefits on your record? Your decisions may affect them.

Do Military Retirees Get Social Security?

According to the Social Security Fairness Act (SSFA) of 2025, military retirees can get both Social Security benefits and military benefits. Generally, there is no reduction of Social Security benefits because of your military retirement benefits. You’ll receive Social Security benefits based on your earnings and the age you choose to start receiving benefits.

In addition to retirement benefits, the SSA pays:

• Survivor Benefits for Families — If a service member dies while on active duty, the SSA provides monthly payments to eligible survivors, including spouses, children, and in some cases dependent parents. These benefits help replace lost income and provide long‑term financial stability.
• Disability Benefits for Injured Service Members — Service members who become disabled during active duty, regardless of where the injury occurred, may qualify for Social Security Disability Insurance (SSDI). This includes both physical and mental health conditions that prevent substantial work.
• Benefits for Family Members of Disabled Service Members — When a service member receives SSDI, certain family members — such as spouses and dependent children — may also qualify for monthly payments based on the service member’s benefit amount.

Is Social Security Impacted by the WEP and GPO Changes?

The Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) were long-standing Social Security rules that reduced or eliminated benefits for certain retirees with pensions from work not covered by Social Security taxes. The SSFA  repealed the WEP and GPO. Here’s what that means for military retirees and Social Security recipients:

• Military retirees who paid into Social Security now receive their full earned benefit, with no WEP reduction.
• Spousal and survivor benefits are fully restored, since they are no longer offset by GPO.
• Anyone previously affected by WEP or GPO will likely see higher monthly payments based on their repeal.

Special Extra Earnings for Military Service

Under certain circumstances, special extra earnings for periods of active duty or active duty training from 1957 through 2001 can also be credited to your Social Security earnings record. These extra earnings may help you become eligible for Social Security or increase the amount of your Social Security benefit.

How Much Money Will You Need in Retirement?

Deciding when to begin your Social Security benefits is part of a larger decision about when to retire. Making that decision may depend on your expected cost of living in retirement.

For many years, the conventional wisdom was that people would need about 70 to 80 percent of their pre-retirement income in retirement. That may no longer be the standard as many people are living longer. While it’s true that some of the expenses associated with working don’t carry over into retirement, they may be more than offset by the expenses associated with an active retirement lifestyle. For these reasons, it seems prudent to plan on needing closer to 100 percent or more of your pre-retirement income. 

How Will My Social Security Benefits Be Impacted if I Choose to Keep Working?

Another emerging trend is the sizeable portion of seniors who don’t want to quit working or choose to work part-time to stay engaged or give back to their community. This can be an attractive option if you anticipate needing additional income, but you’ll need to plan for a temporary reduction in benefits of $1 for every $2 you earn over the stated earnings limit, which is $24,480 for 2026.¹ In the year you reach full retirement age, the earnings threshold increases to $65,160; for earnings above that amount (before the month you reach FRA), benefits are reduced by $1 for every $3 earned.² This reduction only applies before you reach full retirement age, at which point the benefit is recalculated to adjust for the time when your benefits were reduced. 

Build a Comprehensive Retirement Income Plan

It’s important to remember that your estimated Social Security benefits are just that — an estimate — based on many factors, including potential earnings changes and adjustments due to cost of living increases. In addition, they are based on current law, which is subject to change.

Reserves that help fund the program are projected to be exhausted by 2034, which has alarmed many for years. Even if this occurs, however, it’s estimated that the transfer of wealth from those in the workforce will still provide retirees with 81 percent³ of estimated benefits.⁴

Social Security is one important component to financing your retirement, but many people will need several sources of income to meet all their needs. To estimate how much you’ll need for retirement and to create a plan for it, contact a knowledgeable First Command Financial Advisor.

Frequently Asked Questions (FAQs)

Does VA disability compensation affect my Social Security benefits?

No. VA disability payments do not reduce Social Security retirement or SSDI benefits. They are separate programs with separate eligibility rules, and receiving one does not disqualify you from the other.

Can I receive SSDI and VA disability at the same time?

Yes. Many veterans receive both. SSDI is based on your work history and inability to perform substantial work, while VA disability is based on service‑connected conditions. Approval for one does not guarantee approval for the other because the evaluation criteria differ.

Does the 2026 COLA increase apply to SSDI as well as retirement benefits?

Yes. The 2.8% COLA applies to all Social Security beneficiaries, including SSDI recipients, survivors, and dependents.

¹https://www.ssa.gov/cola/

²Benefits Planner: Retirement | Receiving Benefits While Working | SSA

³Trustees Report Summary

⁴https://www.ssa.gov/OACT/TRSUM/index.html

First Command and its affiliates do not provide legal or tax advice. This material is for informational purposes only and should not be relied on for legal or tax advice. You should consult your own legal or tax advisors before engaging in any transaction.