How much is VA Disability payment could increase with the latest COLA 2025 projection?
The Social Security Administration’s cost of living adjustment (COLA) for 2025 is anticipated to be lower than previous forecasts. According to Mary Johnson, a retired Social Security and Medicare policy analyst, and The Senior Citizens League (TSCL), the predicted increase is expected to be around 2.5%. This forecast marks the lowest anticipated COLA since 2021, though Johnson notes that a 2.5% adjustment would still be considered average.
Johnson expressed concern about the impact of this modest increase, highlighting that despite the COLA, inflated prices on essentials such as housing, food, auto insurance, and services continue to strain seniors’ budgets. TSCL’s prediction also aligns with a 2.5% adjustment, based on a decrease in consumer price data from 2.9% to 2.5%. According to TSCL, this adjustment would increase the average monthly benefit for retired workers from $1,920 to $1,968, an increase of $48. This forecast is notably the lowest in recent months and reflects growing financial pressures on older Americans.
TSCL’s 2024 Retirement Survey reveals that 65% of seniors reported monthly expenses of at least $2,000, a rise from 55% in 2023. Additionally, the number of seniors spending at least $4,000 or $6,000 per month has increased compared to the previous year.
VA Disability Payments to Increase in 2025
Veterans can also expect a boost in their disability payments for 2025. The VA disability pay rates are set to increase by 2.63% effective December 1, 2024, reflecting the latest COLA adjustment from the Social Security Administration. Although the official COLA rate will be confirmed in October 2024, veterans can use this percentage to estimate their upcoming benefits.
The adjustment will affect various compensation categories, including those for veterans with dependents. For instance, a veteran with a 10% disability rating will see their payment rise to $175.73, while a 100% disabled veteran with a spouse and child may receive over $4,000. Understanding these rates is crucial as they directly impact the financial support veterans receive for service-connected disabilities. Veterans should monitor their eligibility and potential additional benefits based on factors such as dependents or severe injuries. The final details of the updated rates will be available by December 2024, allowing veterans to plan accordingly for the upcoming year.
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