VA COLA Increase 2025: How much are VA Disability increase with the 2025 COLA?
According to Marca, If you’re a recipient of VA benefits, including VA Disability, there’s good news on the horizon. Thanks to the Cost of Living Adjustment (COLA), your benefits will increase at the start of 2025. Much like Social Security, VA beneficiaries can expect to see this boost in their payments beginning in January 2025.
How the 2025 COLA Increase Works
The COLA is applied as a percentage increase to your current benefit. This means that the more you’re currently receiving, the larger the dollar amount of your COLA boost. For example, if you’re receiving around $3,600 a month from VA Disability, a projected COLA of 2.5% could increase your check to approximately $3,690 per month — an extra $90 each month. Over the course of a year, that adds up to over $1,000 in additional income.
While 2.5% is just a projection for now, based on estimates from the Senior Citizens League, the official COLA rate will be announced by the Social Security Administration in October 2024 and will go into effect for VA payments in January 2025.
Why Does COLA Matter?
The COLA exists to help offset inflation and rising costs of living, ensuring that veterans, like Social Security recipients, can maintain their purchasing power. Although this adjustment isn’t designed to make recipients wealthy, it helps cover essentials like housing, food, and utilities. As experts explain, “The goal is not to make recipients wealthy, but to ensure they can still cover their basic needs without worrying.”
What Veterans Need to Know About the 2025 COLA
So, when can you expect the increase? VA payments are typically sent on the 1st of each month, unless that day falls on a weekend or holiday. In those cases, payments are sent on the last business day before the 1st. This schedule applies to all VA benefits, including Disability support.
It’s important to note that the 2025 COLA will not affect your payments for the rest of 2024. You will continue receiving the same amount for now, but the first payment reflecting the COLA increase will arrive in January 2025.
How the COLA Will Impact VA Disability Benefits
For veterans receiving VA Disability, the COLA increase can have a meaningful impact. For example, veterans with a 100% disability rating could see their monthly checks increase from $3,836 to around $3,932 due to the 2.5% bump. That extra income could make a significant difference in managing day-to-day expenses, providing some relief from inflation.