Disabled veterans and military retirees will see a nearly 9% cost-of-living adjustment (COLA) in their monthly benefits from the Department of Veterans Affairs in 2023, the most significant jump since 1981.
The Social Security Administration (SSA) announced the 8.7% increase in October, following a second year of high inflation. Veterans benefits, such as disability compensation, clothing allowance, and Dependency and Indemnity Compensation, are tied to SSA’s cost-of-living determination.
“Over the past two years, like much of the country, disabled veterans have had to balance the needs of their family with rising costs,” said Washington Headquarters Executive Director Randy Reese. “This COLA increase is absolutely critical for so many disabled veterans, many of whom rely on their earned veterans benefits to make ends meet.”
Over the past decade, COLA increases had climbed modestly, not increasing more than 2.8% in a single year (2018). But the COVID-19 pandemic and subsequent supply chain issues, surging demand and higher production costs hit Americans in the wallet. Overall, inflation shot up 8.2%, causing rising prices for food, rentand other everyday living expenses.
The 2022 COLA hike was 5.9%.
The adjustment for 2023 means a disabled veteran with a 10% VA rating can expect to see about $13.28 more each month, and a 100% disabled veteran with nodependents will receive $300 more per payment.
Learn more online. The VA maintains a full disability compensation tableat dav.la/39d.
