Veterans to receive 3.6% benefit increase under new cost-of-living adjustment
A new 3.6% cost-of-living adjustment (COLA) will increase payments for military retirees and veterans receiving disability compensation.
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As Veterans Day approaches, millions of former service members across the country are set to receive a boost in their monthly benefits.
A new 3.6% cost-of-living adjustment (COLA) will increase payments for military retirees and veterans receiving disability compensation, providing additional financial support as many households continue to grapple with elevated living costs.
For Jack Stein, an Army veteran who served during the Vietnam War, the increase is welcome news.
"Things are tough for a lot of people, especially for veterans," Stein said.
Stein is among roughly 8 million Americans who receive monthly benefits tied to their military service. The annual adjustment is designed to help those payments keep pace with inflation.
"That increase of course puts a little bit more into our veterans' pockets," Stein said. "It gives you that little bit extra to provide for your family, provide for yourself."
The adjustment is calculated each year using inflation data compiled by the U.S. Bureau of Labor Statistics. Similar cost-of-living increases are also applied to Social Security benefits and other federal programs.
However, some financial experts caution that even with the increase, many veterans may continue to struggle with the high cost of living, particularly on Long Island and throughout the New York metropolitan area.
"This isn't meant to put you into a better standard of living, but it's meant to help you prevent going backwards," said Mitch Goldberg, of ClientFirst Strategies. "And it doesn't appear that this is enough."
Although the increase is intended to offset inflation, housing costs, health care expenses and other everyday necessities have risen sharply in recent years, creating financial challenges for many veterans and retirees living on fixed incomes.
Stein said supporting veterans remains an important responsibility long after their military service ends.
"Think about the sacrifices that not only the vets made but their families made," he said. "And it's important that we continue taking care of them because of the sacrifices that they made."
The 3.6% benefit increase officially takes effect on Dec. 1, with most veterans expected to see larger payments reflected in benefit checks and direct deposits at the beginning of the new year.
