You've heard it before: Words are important! COLA is not the same thing as a pay raise.

Last week 2023 COLA for federal retirees was announced at 8.7% / 7.7%. Many people who are planning to retire on 12/31/22 are asking if they will receive that. They will not. Pay raises are while you're working. They increase what you earn as well as what you can buy or save. COLA is after you've retired but the first year it might be prorated. COLA stops (or slows) your retirement annuity from decreasing in economic value.