Veterans across the U.S. are in for a financial boost as the Department of Veterans Affairs rolls out its 2025 benefits increase. Announced by the Social Security Administration in October 2024, the cost-of-living adjustment (COLA) for 2025 is set at 2.5%. This increase affects VA disability compensation, pensions, and survivor benefits, ensuring that payments keep pace with inflation.
With payments reflecting the new rates starting December 1, 2024, and hitting bank accounts by late March 2025, many veterans are eager to see how much extra money they will receive.
Disability
The 2.5% COLA increase varies based on a veteran’s disability rating. For example, a veteran with a 10% disability rating and no dependents will see their monthly payment increase from $171.23 in 2024 to approximately $175.51 in 2025. While this may seem like a small jump of $4.28, for those with higher disability ratings, the increase is much more noticeable.
A veteran with a 100% disability rating and no dependents will see their payment rise from $3,737.85 to about $3,831.30 per month, an increase of $93.45. For many, these benefits are essential for covering daily expenses such as food, housing, and medical costs.
Families
Veterans with dependents will also see a bigger boost in their payments. For example, a veteran with a 70% disability rating, a spouse, and two children under 18 currently receives $1,968.28 per month. With the 2.5% increase, their payment will rise to approximately $2,017.49 in 2025, adding nearly $49.21 per month.
If the veteran’s spouse also qualifies for Aid and Attendance benefits, they will receive an additional $137. The VA compensation tables consider the number of dependents, meaning the more family members, the larger the increase in benefits. Veterans can check their exact new payment amounts using tools like DAV’s online disability calculator.
Survivors
The increase doesn’t just apply to veterans. Survivors receiving Dependency and Indemnity Compensation (DIC) will also see their payments go up by 2.5%. For example, a basic DIC payment of $1,562.74 in 2024 will rise to around $1,601.81 in 2025, an increase of $39.07 per month.
Other benefits, such as special monthly compensation, clothing allowances, and VA pensions, will also adjust according to the COLA rate. While this may not be a life-changing increase, every extra dollar helps, especially in times of rising inflation.
Payment
The new payment rates take effect on December 1, 2024, but veterans and survivors won’t see the changes in their bank accounts until March 31, 2025. The delay is due to processing times within the VA system.
Although the increase may seem small, these adjustments provide much-needed relief to veterans and their families. The COLA ensures that benefits continue to align with the cost of living, offering some financial security to those who have served their country.
FAQs
When will veterans see the 2025 VA benefits increase?
Veterans will see the increase in their March 31, 2025, payment.
How much is the 2025 COLA increase?
The 2025 COLA increase is set at 2.5%.
Will the increase apply to VA pensions?
Yes, VA pensions will be adjusted according to the COLA increase.
How does the increase affect veterans with dependents?
Veterans with dependents will receive a larger increase in their benefits.
Where can veterans check their updated benefit amounts?
Veterans can check their new amounts using DAV’s online disability calculator.
