As we head into 2025, it is important for veterans and their families to be aware of the changes they may see to the VA benefits they receive. One of the changes that happens every year is the COLA (Cost of Living Adjustment) increase. This annual increase in benefits is meant to help offset the rising cost of living and make sure that benefits keep pace with inflation. In this blog, we will cover how COLA works, what the increase looks like for this year, and how it will affect individuals receiving benefits.
How Does the COLA Increase Work?
The COLA increase is a percentage change applied to VA benefits, Social Security payments, and other government assistance programs. The amount of the increase is determined by the rate of inflation, as measured by the Consumer Price Index (CPI). This means if inflation goes up, so do your benefits, this makes sure your benefits retain their same value, no matter the state of the economy.
In 2025, the COLA increase is 2.5%, slightly lower than last year’s 3.2% increase. This increase is designed to help veterans manage the increased costs they may face, including medical care, housing, and everyday expenses.
How Will This Affect Your VA Benefits?
The COLA increase will apply to a variety of VA benefits, including disability compensation, pensions, and survivor benefits. For veterans, this means an increase in the monthly payments they receive. The actual amount of the increase will depend on your specific rating, as well as the overall percentage increase set by the government.
For example, a veteran receiving a disability compensation check could see a noticeable rise in their monthly payment as a result of the COLA adjustment. For families who rely on VA pensions or survivor benefits, this change will also offer some relief, helping them stretch their income further as prices continue to climb.
What Should Veterans Do to Prepare for the COLA Increase?
While you can’t control the exact size of the COLA increase, you can prepare for its arrival by reviewing your current benefit details. Veterans should receive notice of their increase by December and start receiving the new benefits in January. It’s a good idea to reach out to your VA representative if you have any questions about how the increase might affect your specific benefits. Additionally, staying informed about changes to the COLA percentage can help you plan your finances for the year ahead.
Looking Ahead: How COLA Changes Can Impact Your Future
As the COLA increase for 2025 takes effect, it will likely offer some much-needed relief for veterans who have seen their costs rise. While the adjustment may not completely eliminate the challenges of inflation, it does provide extra support for veterans.
If you’re wondering how the COLA increase will impact you personally, or if you need assistance navigating your VA benefits, don’t hesitate to reach out to an experienced attorney. Getting help with understanding the specifics of your benefits and how changes might apply to you can make a big difference.
At Unruh Law, we’re here to support veterans and their families, ensuring they get the benefits they’ve earned and helping them navigate any changes that come their way. If you have questions about your VA benefits, contact us today. We’re always here to help.