January saw the beginning of a 2.5% increase for 2025 in monthly benefit payments for military retirees and disabled Veterans. This boost in the monthly benefits is designed to help recipients keep pace with inflation, acting as a Cost of Living Adjustment (COLA). These boosts to the COLA are done every year, ensuring that a range of benefits stay valuable long-term for pensions and disability benefits.
Retired military members will see a 2.5% increase in their monthly pensions during this year. For service members who joined on August 1st, 1986 or after, if he or she selected the Career Status Bonus (CSB), the increase will be smaller due to their reduced adjustment. Any retired members of the Survivor Benefit Plan (SBP) will also receive a 2.5% increase in their pension as well. As for any 2024 retirees, their COLA increase will be prorated based on when he or she retired within the year. Those who retired earlier in the year will receive a bigger adjustment than those who retired later.
Depending on the disability rating, disabled Veterans can still qualify for the 2.5% COLA to their disability compensation. Those with dependents will also receive a little extra, calculated through the Department of Veterans Affairs’ (VA) compensation tables. Any survivors who are a part of the Dependency and Indemnity Compensation DIC) will also see this 2.5% increase. These small but crucial increases will help families of fallen service members with their living expenses and maintain financial stability in correlation with inflation.
Navigating military and VA compensation adjustments can be a complicated experience. It is crucial for Veterans to receive the full benefits he or she has earned and are entitled to. Some Veterans may qualify for a higher disability rating if their service-connected injuries worsen, and applying for a rate increase may provide some additional financial relief.
VA-accredited attorneys can give advice and help address issues when filing for benefits or appealing a denial. Take advantage of Fight4Vets free consultations to learn more about the options you have and how the 2025 COLA affects you.
