A confirmed 2.5% Cost of Living Adjustment (COLA) means that veterans receiving VA disability benefits will see an increase in their monthly payments as 2025 draws near. This yearly adjustment assists veterans in maintaining their quality of life in the face of growing expenses and inflation.
Let’s examine the implications of this for veterans with VA disability ratings of 90% and how it will influence their monthly benefits.
What is the 2025 COLA Increase?
Social Security benefits and VA disability payments are subject to an annual rise known as the Cost of Living Adjustment, or COLA, to compensate for inflation. The CPI-W, which monitors changes in the pricing of goods and services, is the basis on which the Social Security Administration (SSA) calculates COLA.
A 2.5% increase has been approved for 2025, which means veterans’ monthly disability benefits will increase by a small amount.
This growth is a little less than in prior years. For instance, post-pandemic inflation caused veterans to get an 8.7% increase in 2023; nevertheless, the 2025 adjustment represents a more stable economic climate.
How Will This Affect 90% of VA Disability Payments?
The 2025 COLA rise will result in a monthly payment increase for veterans with a 90% disability rating from $2,241.91 in 2024 to $2,297.96 in 2025. For people who depend on their disability benefits to fund living expenses, this signifies a much-needed relief of $56.05 monthly.
| VA Rating | 2024 Payment | 2025 Payment | Monthly Increase |
|---|---|---|---|
| 10% | $171.23 | $175.51 | $4.28 |
| 20% | $338.49 | $346.95 | $8.46 |
| 30% | $524.31 | $537.42 | $13.11 |
| 50% | $1,075.16 | $1,102.04 | $26.88 |
| 70% | $1,716.28 | $1,759.19 | $42.91 |
| 90% | $2,241.91 | $2,297.96 | $56.05 |
| 100% | $3,737.85 | $3,831.30 | $93.45 |
A veteran with a 90% rating receives a respectable boost, but it’s vital to remember that this amount could vary based on other qualifying circumstances or whether the veteran has dependents.
Factors Affecting the COLA in 2025
Multiple causes led to the 2.5% rise in COLA for 2025.
- Inflation: Following years of sharp price increases brought on by the epidemic, the adjustment accounts for modest inflation. Larger COLA increases usually result from higher inflation, whereas lesser adjustments—such as those in 2025—result from lower inflation.
- Consumer Price Index (CPI-W): The SSA computes COLA using information from the CPI-W. Based on third-quarter 2024 statistics compared to the same time in 2023, the 2025 adjustment has been calculated.
Additional Benefits and Considerations for Veterans
Veterans should anticipate further increases in compensation based on the size of their family if they have dependents, such as spouses or children.
For instance, in 2025, a veteran, spouse, and one child with a 90% disability rating can anticipate receiving compensation each month of about $2,426.08. The monthly compensation increases even more if the spouse is eligible for Aid and Attendance.
Here is an illustration for a 2025 veteran who has dependents:
- Base amount: $2,297.96
- One under-18 child costs +$73.80.
- Spouse’s assistance and attendance: +$137.35
- Total monthly payment: $2,509.11
This computation shows how veterans’ monthly benefits might grow significantly when they have dependents and unique situations.
How to Maximize Your VA Benefits?
There are actions you can take to make sure you’re getting the most benefits if you’re a veteran with a 90% rating:
- Ensure all dependents are included: To receive extra money, ensure your spouse or children are eligible for Aid and Attendance is recorded on your benefits claim.
- Examine your eligibility for extra benefits: Veterans may be eligible for grants for housing, education assistance, and vocational rehabilitation, among other benefits.
- Look for any more conditions: If your condition related to your service has gotten worse or if you’ve developed additional conditions related to your service, consider applying for an upgrade in your disability rating.
In light of current events, the 2.5% COLA increase for 2025 may not seem significant, but it is an essential modification to guarantee that veterans’ benefits remain up with inflation.
To provide financial security for those who have served their country, veterans with a 90% disability rating will see an increase in their monthly compensation.
Veterans must remain aware of impending changes to their benefits. Use any extra benefits or allowances for dependents, and use the 2025 VA Disability Pay Chart to see how the increase will impact your monthly payments.
Visit VA.gov for additional information, or speak with a knowledgeable VA benefits representative to check your eligibility.
