Good news is on the way for disabled veterans and military retirees! Starting in January 2025, monthly benefits will increase by 2.5%, giving veterans and retirees a little extra financial relief.
This increase comes as part of the Cost of Living Adjustment (COLA), which ensures that military pensions and VA disability benefits keep up with inflation. The adjustment follows the same increase announced for Social Security recipients and other federal benefits.
How Much More Will Veterans Get?
The exact amount of the increase depends on a veteran’s disability rating or retirement pension. For example:
- Veterans with a 100% disability rating will see an increase of about $93.45 per month.
- Those with a 10% disability rating will get around $4.28 extra each month.
- Military retirees will also see their pensions rise, helping cover essentials like housing, groceries, and healthcare.
Why Are Benefits Increasing?
Each year, the government adjusts benefits based on the Consumer Price Index (CPI), which tracks inflation. The goal is to help veterans and retirees maintain their purchasing power despite rising costs.
While last year’s COLA was 3.2%, and 2023 saw a record-breaking 8.7% increase, this year’s smaller adjustment reflects slowing inflation. However, veterans’ advocates argue that the government’s inflation calculations don’t fully reflect the rising cost of healthcare and housing, especially for older Americans.
What Happens Next?
The 2.5% increase officially takes effect on December 1, 2024, meaning veterans and retirees will see higher payments in their January 2025 checks.
This adjustment was signed into law as part of the Veterans’ Compensation Cost-of-Living Adjustment Act of 2024 (H.R. 7777), ensuring that VA benefits and military pensions continue to rise alongside inflation.
For veterans looking to see exactly how much they will receive, updated VA disability and pension rates are available on the VA’s official website or through local Veterans Service Organizations (VSOs).
Are you excited about this increase? Let us know how it will impact you!
