Inflation affects every aspect of our daily life. Veterans that depend on the disability benefits provided by the Department of Veterans Affairs (VA) will see an increase in their payment starting in 2025 due to the new COLA adjustment announcement. The new adjustment is necessary to protect the purchasing power of veterans who receive these benefits. However, here is how the new COLA adjustment will affect your monthly benefits and these are the veteran’s who will receive more money.
What is the COLA adjustment and how does it impact VA payments?
Every year, the Social Security Administration (SSA) and the Department of Veterans Affairs (VA) adjust benefits based on the inflation rate, known as the COLA. In 2025, this adjustment will result in a 2.5% increase in VA disability payments.
This adjustment is particularly important because veterans’ benefits need to keep up with inflation. As prices rise for necessities like food, gas, and healthcare, the COLA ensures veterans don’t lose purchasing power. For instance, a veteran with a 100% disability rating currently receiving $3,831.30 per month will see that amount rise to around $3,927 monthly after the 2025 adjustment.
Who will see the biggest VA payment increase in 2025?
The veterans who will see the biggest increase in their checks next year are those with higher disability ratings, particularly those at 70% to 100%. Veterans in this category already receive the highest compensation due to the severity of their disabilities, and the 2025 COLA adjustment will further boost their monthly payments.
For example:
- Veterans with a 100% disability rating will receive an extra $95.78 a month, bringing their monthly payments from $3,831.30 to $3,927.
- Veterans with a 70% rating and no dependents will see their payments increase from $1,759.19 to approximately $1,803.17 per month.
This boost will be even more significant for veterans with dependents, such as spouses and children. For instance, a veteran with a spouse and one child at a 100% disability rating will receive $4,201.34, up from $4,306.34. This extra money can go a long way toward covering household expenses.
How does VA disability rating affect payments?
Disability ratings given by the VA are determined by the extent of your service-related disability. The figures range from 10% to 100% and increase by 10% every time. Higher percentage disabilities are more severe and thus more compensation is provided.
Veterans with multiple disabilities usually have what is referred to as a combined rating, which also increases their monthly payments. For instance, those with a 50% rating on one condition and a 30% rating on a different condition will have the compensation calculated from the combined ratings, which will reflect both conditions.
Moreover, veterans with dependents such as spouses, children or aged parents receive extra compensation. Dependents will relatively increase the amount of VA payment the veteran will get monthly and inflation on these payments will be increased with the new COLA announcement.
How to maximize your VA benefits after the 2025 COLA adjustment
While the COLA adjustment provides a much-needed boost, it’s essential to stay on top of how your benefits might change. Here are a few ways to maximize your VA benefits after the 2025 adjustment:
- Review your disability rating: If you believe your disability has worsened, you can request a reevaluation. If your rating increases, your compensation will rise accordingly.
- Keep track of your dependents: Make sure the VA is aware of all your dependents, as having a spouse, children, or elderly parents can significantly increase your payments.
- Consult with a veterans service officer (VSO): VSOs can help you understand how the new COLA affects your benefits and can assist with any appeals or reviews of your disability rating.
What should veterans do next?
For veterans who are already receiving disability benefits, you do not have to do anything to see the increase in your payments – the VA will implement the COLA adjustment automatically after December 2024.
Nevertheless, it is wise to check your payments from time to time to make sure that your figures are correct. Furthermore, the veterans who are not already receiving the disability benefits but think they qualify are advised to file for them. The veteran’s disability compensation is based on the severity of your service connected disability, hence if you have had a medical condition as a result of your service, you deserve to file for your benefits.
The COLA adjustment will also be applied to all new claims granted in 2025 and thereafter. The 2025 COLA adjustment is beneficial to those who are already on benefits. Therefore, it makes sure that your compensation remains valued despite inflation. Keep yourself updated, consider re-evaluating your disability rating and leverage on the benefits you and your family can gain.
