Money

VA Disability COLA 2024: Will There Be an Increase in Military Retirement Benefits?

VA Disability COLA 2024: Will There Be an Increase in Military Retirement Benefits? Following the recent announcement of the COLA (Cost of Living Adjustment) for 2024, many Americans are eager to determine the extent of the increase in their VA Disability and Social Security retirement benefits. In this article, we’ll explore how the 2024 COLA affects military retirees and beneficiaries across the nation.

Table of Contents

COLA 2024 for Military Retirees

Like all other benefit recipients in the United States, military retirees with a disability will be eligible for the 2024 COLA. As a result, these individuals will experience an increase that elevates their maximum benefits to previously unseen levels. To ascertain the exact impact on their finances for 2024, one simply needs to follow the standard formula applied to all benefits.

Universal Benefit Increases

Under the forthcoming COLA in 2024, it is important to understand that the increase will be applied across the board, affecting not only VA Disability recipients but also military retirees and other beneficiaries. This alteration will take effect in 2024, with no provisions for rollback. The total increase to expect is 3.2%, as officially declared by the United States Government.

Comparing COLA 2024 to Previous Years

Although the COLA for 2024 may not be as substantial as that of 2023, it is expected to be adequate. The U.S. Government calculates the Cost of Living Adjustment based on inflation rates. Consequently, the greater the inflation rate, the larger the COLA increase, even if it might appear insufficient to some for the year 2024.

Calculating the Increase

The calculation of the increase is straightforward; if you receive a check, whether it’s SSI, VA Disability, or another form of benefit, you simply need to add 3.2% to determine your expected payment from January onwards in 2024. This straightforward rule is accessible to every American, enabling them to anticipate their benefits for the upcoming year.

How Much Will VA Disability Benefits Increase After COLA 2024?

The COLA for 2024 will introduce a 3.2% increase in benefits. To put it in concrete terms, for every $100 of your benefit, it will rise to $103.2. In practicality, this means that every $1,000 in your Social Security disability check will amount to $1,032, commencing in 2024.

Proportional Benefit Increases

Since this increase operates on a percentage basis, the extent of the increase will vary depending on your specific benefit amount. This implies that not all VA Disability benefit recipients will experience the same increase; it will be proportional to the amount of their existing benefit.

Individualized Benefit Adjustments

Each beneficiary will witness their unique benefit increase, in line with their individual benefit amount. For instance, if you currently receive a monthly benefit of $1,538 as a military retiree, in January of the coming year, you will start receiving $1,587, reflecting a $49 increase.

Long-Term Perspective

While the individual increase might not seem substantial, it’s essential to consider the cumulative effect on all payments in 2024. For instance, if your benefit mirrors the example above at $1,538 per month, by the end of the year, the extra money will amount to an additional $588 in your pockets. This financial gain, which may not have been available before, represents a welcome boost to your income.

Collecting the Increase

However, it’s worth noting that you’ll need to wait until January 2024 to start receiving the augmented payments. The initial payment of that year will integrate the 3.2% COLA increase, with subsequent payments following suit throughout the year until December. After that, any additional increases for 2025 will be implemented.