In 2025, veterans who are qualified will receive their monthly payment from the Veterans Affairs Department (VA) with extra cash because of the new 2.5% COLA adjustments. While some veterans see it as a small increment, this will add up over time if you budget your expenses. A veteran quipped, “That’ll buy me a couple extra cartons of eggs and a loaf of bread.” While this is humorous, there’s a bit of reality there especially for veterans with low ratings. For veterans with ratings from 10% to 40%, this increment may be little. However, it can still provide a level of support to beneficiaries.
Let’s carry out a step by step breakdown of how the new COLA increment will affect your benefits whether you are rated at 10% or a 100% and what you can expect.
How the COLA increase will vary by disability rating
The amount of increase in veteran payment starting 2025 is largely dependent on disability rating which ranges from 10% to 100%. Basically, the higher your rating, the higher the extra cash you will get with the new COLA. Regardless, every increment matters.
For example, veterans with 10% disability rating who are currently receiving the payment of $171.23 per month will receive an extra $4.28 bringing their total monthly payment to $175.51. It might not sound like much, but that extra $51.36 a year can go towards groceries or other small expenses.
Now, if you have a 100% disability rating, your current payment is $4,201.34. With the 2.5% increase, that adds an extra $105 to your monthly payment, making it a total of $4,306.34. That is an extra $1,260 over the course of one year. This amount could cover bigger expenses, such as medical bills, or go toward savings or home improvements.
What can you buy with the 2.5% increase?
Let us put this into perspective. While it might not seem like a lot, even a few extra dollars every month can help with everyday purchases.
- For a 10% rated veteran: With an extra $4.28 a month, you can buy a loaf of bread and maybe even a dozen of eggs. Over the year, that extra $51.36 might help cover for your tank of gas. It is not life-changing, but every little bit of “extra” cash helps when you are on a tight budget.
- For a 100% rated veteran: An additional $105 every single month gives you more options. You could put it toward utility bills, save it for an emergency fund, or use it for groceries. Over the year, that extra $1,260 can help you get a new appliance, repair something in your home, or even take a short vacation. You will be able to afford bigger expenses, which makes a whole lot of difference in your overall budget.
How do I know if my benefits are increasing?
If you are wondering whether you qualify for this COLA increase, do not worry – it is automatic. The VA adjusts your benefits based on the cost of living, so you will see the increase in your payments without having to apply for it.
- The 2.5% increase applies to all veterans receiving disability compensation, survivors receiving Dependency and Indemnity Compensation (DIC), and others receiving VA benefits.
- If you are not sure about your current rating or how much your payment will increase, you can check your monthly statement or contact the VA directly for assistance.
Why the COLA increase still matters
Some veterans joke about the small increment like the war veteran who laughed about buying eggs and bread with the extra cash he will get from the VA.The truth is every extra cash or benefit from the government matters, regardless of how little.
Recently, there’s been a rise in living expenses and prices of goods and services continue to fluctuate as a result of inflation. The COLA is meant to provide assistance to beneficiaries of government benefits including veterans to ensure that payments received are still relevant and maintain their purchasing power.
While the current increment may not seem much, overtime, if you manage your expenses appropriately, the extra cash can add up to support you and your family with basic life expenses.
Budgeting for the year can be of immense help to you and assist you save up for the future. So while this current increment may seem like nothing and more of a drop in the bucket, avoid dismissing the positive impact it can have on your purchasing power especially if you plan your finances.
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