In 2023 disabled veterans and military retirees got a record pay increase for the second year in a row.
After taking into account inflation, COLA rates are rising and disabled veterans and military retirees will be getting an 8.7% increase in their monthly checks on average.
COLA, or the Cost of Living Adjustment, is money that is for the purpose of covering higher costs of food, transportation, clothing and other non-housing items. It is typically tied to social security rates.
This is the largest increase veterans have seen in 40 years.
More info via Military.com:
Retirement Pay Increase
For 2023, retired military members will see a $87 increase for each $1,000 of military retirement pension they receive each month.
Retirees who entered military service on or after Aug. 1, 1986, and opted for the Career Status Bonus (CSB/Redux retirement plan) will have any COLA increases reduced by 1%, so they will see a smaller increase of $77 per $1,000 in 2023.
Survivors receiving Survivor Benefit Plan payments will see their payments increase by the same amount as retirees.
VA Disability Increase
Disabled veterans will also see their benefit payments increase in the upcoming year. The average VA disability check will go up about $13.28 per month for those with a 10% rating, and $289.89 for those rated at 100%.
The annual COLA adjustment affects 1 in 5 Americans, and it is calculated based on the CPI (Consumer Price Index).