It’s been quite the wait with plenty of wondering, but the 2023 COLA numbers have finally arrived and they’re the highest in 42 years! Keep reading to see the numbers and learn how you benefit as a veteran.
A Few Common Questions About COLA
What is the COLA?
The Cost-of-Living Adjustment (COLA) comes from the U.S. Social Security Administration and provides Social Security and Supplemental Security Income (SSI) benefits to retired persons throughout the country. This is typically made to help counteract the effects of rising prices and inflation, which has been an issue for Americans – especially retires – throughout much of 2022
How Does the COLA Affect Veterans?
Military veterans’ benefits increases are tied to the Social Security COLA figure, resulting in veterans benefiting from the increase just as civilian retirees would.
What Benefits Does the COLA Affect?
The COLA increase applies to everything from disability compensation payouts and dependency and indemnity benefits to clothing allowances and several other VA assistance programs.
A Look at the Numbers
For 2023, veterans can expect to see an 8.7% cost-of-living increase – the highest since 1981 when it was over 11%! For comparison, the increase percentage for this year (2022) was set at 5.9%.
While this increase is slated for 2023, there may be some veterans who see it reflected in their benefits this December. A veteran who receives $1,500 each month, the 8.7% boost should mean an approximate $130 extra every month. There are approximately 5 million veterans and 2 million military retirees throughout the United States who regularly receive benefits, and this increase will hopefully provide peace of mind and a little more breathing room to many of them.