In 2024, disabled veterans and military retirees will receive a 3.2% increase in their monthly compensation benefits from the Department of Veterans Affairs (VA). This annual cost-of-living-adjustment (COLA) aims to help veterans and their families
manage rising costs in today’s economy. This increase will be reflected in VA disability compensation, clothing allowances, and survivors’ benefits starting January 1, 2024.
Annual Adjustment: How Is It Determined?
The Social Security Administration (SSA) determines this annual COLA. In October 2023, the SSA announced a 3.2% increase for 2024, which applies to various VA benefits like disability compensation and Dependency and Indemnity Compensation (DIC).
These adjustments are vital in helping veterans and their families cope with the rising cost of living due to inflation.
Why VA Benefits Are Essential
For many disabled veterans, VA benefits are crucial to their day-to-day survival. Randy Reese, Executive Director of DAV’s Washington Headquarters, noted how vital these adjustments are, as they ensure that veterans can continue to meet their needs despite
inflation and rising costs. While the economic effects of the COVID-19 pandemic have diminished, inflation remains a challenge, making these annual adjustments necessary for veterans.
Historical Perspective on COLA Increases
Over the years, COLA increases have been modest, with 2018 seeing a 2.8% adjustment. However, 2022 and 2023 had significant increases of 5.9% and 8.7%,
respectively, due to the pandemic’s extraordinary economic impact. In contrast, the 2024 increase of 3.2% may seem smaller but is still a crucial financial boost.
Specific Increases for Veterans
The 2024 increase will result in noticeable changes in veterans’ monthly benefits. For instance, a veteran with a 10% VA disability rating will receive a $6 increase, while a veteran with a 100% rating and no dependents will get an additional $116 each month.
Even though the increase is smaller than the previous two years, it still plays a vital role in helping veterans cope with rising expenses.
Impact on Veterans’ Lives
The 3.2% increase in benefits, although less than the previous two years, still ensures that veterans and military retirees can keep up with inflation and higher living costs.
The SSA’s annual review of these benefits ensures they stay in line with economic changes, helping veterans maintain financial stability. Every small increase helps ease the burden of managing day-to-day expenses.
In summary, the 2024 COLA increase of 3.2% is a critical adjustment for disabled veterans and military retirees. It helps them cope with inflation and rising living expenses.
Though smaller than the previous two years’ increases, it still provides essential financial support to veterans and their families, reflecting ongoing economic changes and ensuring a stable income.
1. What is COLA, and why does it matter for veterans?
COLA stands for Cost-of-Living-Adjustment. It helps veterans’ benefits keep up with inflation, ensuring they receive enough to manage the rising costs of living.
2. How much will veterans’ benefits increase in 2024?
The COLA for 2024 is set at 3.2%. For example, a veteran with a 100% disability rating will receive an additional $116 per month.
3. When will the new COLA adjustments take effect?
Veterans will see the updated benefits in their January 2024 payments.
4. Who determines the annual COLA adjustment?
The Social Security Administration (SSA) determines the annual COLA, based on inflation and other economic factors.
5. How have COLA increases changed over the years?
COLA increases have fluctuated. For instance, 2022 and 2023 saw larger increases (5.9% and 8.7%) due to the pandemic, while the 2024 increase is 3.2%.
