VA Disability – Veterans Benefits to Increase by 3.2% in 2024

By Ehsteem Arif

Published on:

Tanya Bradsher

After two years of record cost-of-living-adjustment (COLA) surges, disabled veterans and military retirees will see an additional 3.2% increase in their monthly compensation benefits from the Department of Veterans Affairs in 2024. This adjustment aims to help veterans and their families cope with rising costs.

Annual Adjustment

The expansion in benefits is set annually by the Social Security Administration (SSA), which announced the uptick in October 2023. The SSA’s determination affects everything from VA disability compensation to clothing allowances and Dependency and Indemnity Compensation (DIC), also known as survivors benefits. Veterans and their families will see the new amount reflected in their benefits starting Jan. 1.

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Importance of Benefits

Many disabled veterans rely heavily on their VA benefits to meet their daily needs. Randy Reese, DAV Washington Headquarters Executive Director, emphasized the importance of these adjustments, noting that reviewing and improving monthly compensation is crucial every year. While the COVID-19 pandemic’s impact on the economy is diminishing, inflation and rising consumer goods prices still affect veterans.

Historical Increases

COLA increases are usually modest. The 2018 adjustment was 2.8%, marking the highest increase over the previous decade. However, 2022 and 2023 saw significant surges of 5.9% and 8.7%, respectively. These substantial hikes were in response to the extraordinary economic conditions created by the pandemic.

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Specific Increases

The 2024 adjustment means tangible changes for veterans. For example, a disabled veteran with a 10% VA rating can expect a $6 increase in their monthly benefits. In contrast, those with a 100% rating and no dependents will see an additional $116 per month.

Impact on Veterans

This 3.2% increase, though lower than the previous two years, still provides crucial financial support. It helps veterans keep pace with inflation and the rising cost of living. While it may seem like a small percentage, every bit counts when it comes to managing expenses.

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The adjustment ensures that veterans’ benefits are aligned with the current economic environment, providing them with a stable income that reflects ongoing economic changes.

In summary, the 2024 COLA increase for disabled veterans and military retirees is a vital adjustment to help them manage the ever-rising costs of living. This annual review by the SSA ensures that benefits keep pace with inflation, offering essential support to those who have served. As the economic impact of COVID-19 wanes, this increase, though smaller, still plays a significant role in maintaining the financial well-being of veterans and their families.

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FAQs

How much will a 10% VA rating increase?

When will the new COLA take effect?

The new COLA takes effect on January 1, 2024.

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How is the COLA determined?

The COLA is set annually by the Social Security Administration (SSA).

What was the highest COLA increase recently?

The highest recent COLA increase was 8.7% in 2023.

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Who benefits from the COLA increase?

Disabled veterans and military retirees benefit from the COLA increase.

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Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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4 thoughts on “VA Disability – Veterans Benefits to Increase by 3.2% in 2024”

  1. Recheck your dates. The article is dated 22 June 2024, but reads the 3.2% increase will take effect on 1 January 2025. That’s in the past. Do you mean 1 Jan 2025?

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