Veterans and Retirees to Receive 2.5% Increase in Benefits

The Social Security Administration has announced that veterans and military retirees will experience a 2.5% cost-of-living adjustment (COLA) in their benefits beginning in January 2024. This represents the lowest increase since prior to the COVID-19 pandemic, which is a substantial decrease from the more significant adjustments of recent years.

Social Security beneficiaries, military retirees, and veterans who receive benefits from the Department of Veterans Affairs (VA) are all affected by the COLA increase. The 2.5% increase will result in an additional $38 per month for a veteran who receives $1,500 in monthly disability payments. In contrast, the recipient received a $48 monthly increase as a result of the 3.2% increase from the previous year.

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The adjustment is designed to assist beneficiaries in maintaining a consistent level of income in response to inflation, which has begun to stabilize and is derived from federal estimates of private-sector compensation. According to Social Security Commissioner Martin O'Malley, the increase will "assist tens of millions of individuals in managing their expenses, despite the fact that inflation has begun to decline."

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The change, which pertains to VA disability compensation, apparel allowances, and dependency and indemnity benefits, among other assistance programs, will impact approximately 5 million veterans and 2 million military retirees. As is customary each year, Congress recently enacted legislation that aligns the veterans' cost-of-living adjustment (COLA) with the Social Security rate.

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Approximately 68 million Americans will experience benefits modifications. In anticipation of the January rollout, the adjustments will be communicated via mail beginning in early December.

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