Starting in January, 2024, there will be a 3.2% cost-of-living adjustment (COLA). This means that benefits payments are increasing. The purpose of COLA? Simply put, it’s to help retired military personnel and veterans keep pace with inflation. Now, while every boost is welcomed with open arms, it’s worth noting that this 3.2% is a decrease from the 8.7% we saw in 2023 and the 5.9% back in 2022. Those hikes were primarily attributed to the inflation surge post-coronavirus pandemic.
In real numbers? For every $1,000 in pension payments a retired veteran receives monthly, there’s an increase of about $32. The Social Security Administration also highlighted that, on average, Social Security retirement benefits will jump by over $50 per month. So, for many, this increase, albeit smaller than previous years, is still a positive change.
A Historical Perspective
To put things into perspective, apart from the notable spikes in 2022 and 2023, this 3.2% COLA for 2024 is the highest since 2011. That was a year when America was bouncing back from the Great Recession. If we turn back the clock a little further and look at the numbers between 2012 and 2020, the average COLA increase was just 1.4%. Moreover, spanning the past two decades, the average sits at around 2.5%. With that context, the 3.2% boost for 2024 isn’t so bad, is it?
Behind the Numbers: Inflation Trends
So, why this number? Why 3.2%? Well, it’s tied to the Consumer Price Index (CPI), one of the top federal measures for inflation. Recently, the CPI showed a price increase of 3.7% over the past year. If we compare, during the height of the pandemic in mid-2022, it was shooting past 9%. Though the current inflation rate still exceeds the Federal Reserve’s 2% target, it’s substantially lower than what we’ve seen in the recent past.
Legislation and Predictions
Interestingly, earlier this year, Congress gave the green light to the Veterans Compensation COLA Act. What this entails is that the Department of Veterans Affairs is obligated to match the same COLA as the Social Security Administration. This ensures that benefits for service-disabled veterans and families of fallen service members are taken care of, keeping in line with national standards.
The Senior Citizens League, a group that champions the cause of senior citizens, had indeed predicted this 3.2% COLA increase for 2024. According to their projections, an average retiree benefit of $1,790 would see a rise of $57.30 monthly.
Uncertainty Looms: The Big Government Funding Question
While the COLA has been set, there’s another pressing issue on the horizon. Congress is racing against the clock. They have roughly a month to greenlight full government funding for 2024. If they don’t, there could be potential disruptions, including possible furloughs at the Social Security Administration. The silver lining? Even in such a scenario, benefits payments to military retirees and other recipients should remain unaffected.
Concluding Thoughts
As we wrap up, it’s essential to reflect on the broader picture. While the 3.2% COLA may not seem like a massive leap, especially when compared to the previous two years, it’s still a step in the right direction. After all, every dollar counts, especially in these times of fluctuating economies and unforeseen challenges.
Stay updated with Military.net for more insights, news, and analyses tailored for our military community. Here’s to a prosperous 2024 for all our veterans and their families!
After listening to the comments I didn’t hear anything about death benefits. When a veteran pass it is a hardship on the families to pay for their families funeral services 😢. The little money that is provided by the military is shameful . We gave our lives for our Country and we deserve for out country to take care of us in out last days. I pray these words are being heard 🙏. God Bless America
Why is it so easy for those that work in congress and the senate to get raises when there is supposedly “no money” and they are never affected by a shut down. They still have Medical care but our country is suffering, especially our elderly. Our elderly are the wounded warriors. There should be a cap on congress and senators (1 term, 4 years is enough).
Why
I just don’t understand why it takes so long for someone to get there VA. I have a friend that has been waiting over 5 years, her husband died and now they tell her that they don’t care if she homeless because she at the bottom of the list. Every body comes before her. Well now her and her Grandkids are living out of a car. Then she was getting Social Security and they cancelled that even though she had at least 5 heart attacks plus she had more wrong with her. I’m a veteran my self and her family won’t help and I can’t help her anymore. It cost me over 100,000 now all I’m paying all these loans barely having enough money for food and I need so much work on my house. I will be Better by next December finally but I can’t help anymore.
I get exhausted after reading years of negative comments from Veterans who served for this country, but it could be much worse, and it is for many vets. The system needs fixing; no veteran should wait long to decide on a claim. Receiving an increase is very appreciated by some but not by many. I’m thankful to the US DEPARTMENT OF VETERANS AFFAIRS for what they have done and are trying to do.
That’s why everyone is living in the streets. Cannot afford medical or housing and food. We spent 20 + years in the military for what “Poverty” that’s what chaps my ass,
Free medical for life until you turn 65 and then they nickel and dime you to death.
… and, Free-Medical-for-Life was a promise squashed by I’ve-Never-Served-Anyone-But-Myself-Congressmen quite a few years ago…
Yes, thanks to Ronald Regan as president he took this free medical for life away from veterans. He signed the bill.
Nickel and dime my but I’m 76 my wife is 72 -I’m a 100% disabled. Vietnam Veteran she has champ va and humans still has to 20% on most drugs. & a lot of other service hum. Cost 186.00 mo. She gets 138.00 back every 3 months for over the counter medical supplies.
Other countries get our funding , while here in the USA we keep going down hill , I know u have heard this before !!!!
Take the funds u send to other countries and take care of the people here in the USA FIRST !!!!!!!
They don’t care about you or anything else you have done in war and they don’t want to do anything for you except tax the hell out of the poor and give it to Ukraine and others. Ever since ww2 we’ve been in one war or another, most have ask for help, BUT HAS ANY OF THEM OFFERED TO PAY US ONE PENNY BACK TO HELP WITH THE GOVERNMENTS DEBT. DID YOU BORROW MONEY FROM CHINA, EUROPE or any other country?
NOW that’s a BIG problem.
Amen
Have no fear! Any COLA increase will probably be eaten up by the Medicare monster and other premium increases.
You’re 100%right
What burns my rear end is after paying into social security for 23 1/2 years, retired military receiving 100% disability, and going to work for the federal government after retiring, When I retired from civil service they take back almost half of my SS because of an offset that congress passed. that requires you to have paid 30 years into SS. That means they take back over $900 a month. Bills have been submitted several times to stop the offset, but nothing ever happens.
3.2 is not enough to cover TriCare Prime
There should be more and we are one step from being sleeping on the streets. I am a disabled veteran who served in Vietnam. I suffer with PTSD, hearing loss, diabetes, stress, poor eyesight, and everything else.
Just curious, is the spouse of a deceased veteran entitled to the same, or comparable benefits as he/she would be? Thank you.
De we as retired Military Spouses get increase in our salary? If so I didn’t get one in my social Security check.
Remember you don’t get it until January and if they increase it VA they take it back through social security.
No ,which they should a veteran’s wife should receive the same amount as the veteran. She was in the military too. That’s just my thoughts.
We all need the the help and the 💰!!!
Right every penny helps
Thank you we need the dollars
Thank you
Thanks we need the money