Social Security's 2027 COLA Boost to Increase VA Benefits, But Concerns About Sufficiency Remain
A 3.6% cost-of-living adjustment for Social Security recipients will also affect millions of veterans, though some argue it won't keep pace with rising expenses.
The Social Security Administration announced a 3.6% cost-of-living adjustment (COLA) for 2027, a notable increase from the previous year's 2.8%. This adjustment is projected to raise the monthly disability benefits for over six million veterans who receive compensation from the Department of Veterans Affairs (VA).
The COLA announcement, made by Social Security Commissioner Frank J. Bisignano, is based on September inflation data from the US Bureau of Labor Statistics. This annual adjustment aims to help recipients cope with the rising cost of living.
While the VA is not directly affiliated with the Social Security Administration, its benefit increases typically mirror the Social Security COLA. This means veterans receiving disability compensation are expected to see their tax-free monthly payments increase by the same 3.6% rate, pending Congressional approval. Payments are typically adjusted starting in December, with the first increased checks disbursed on December 31 or in early January of the following year.
The increase will affect various levels of VA disability benefits, which are determined by the severity of a veteran's service-related condition and the number of dependents. For instance, a veteran with a 10% disability rating might see an increase of approximately $6.50 per month, while a 100% disabled veteran without dependents could receive an additional $147.08 monthly. Special Monthly Compensation, provided to veterans who have lost specific organs or extremities, will also be subject to this increase.
Despite the higher percentage, some veterans and recipients express concern that the COLA may not be sufficient to cover escalating expenses. Adam Jacob, a Marine Corps and Army veteran with a 100% VA disability rating for PTSD and a back injury, shared that the COLA rarely keeps pace with inflation. "The extra dollars each month for someone who is 100% disabled are not life-changing," Jacob stated, noting that he lives "from check to check."
Similar sentiments were echoed by a USMC veteran on TikTok, who suggested that while the 3.6% increase might help cover an extra bill, it likely won't be enough if current economic trends continue. An AARP survey indicated that 76% of older Americans feel the COLA adjustment does not adequately address consistently rising prices.
However, others maintain that any increase is beneficial. Brett Martin, a retired Navy captain and head of the Oklahoma Veterans Commission, emphasized on Facebook that "Every additional dollar matters, especially to veterans, surviving spouses and seniors living on a fixed income." He acknowledged the strain on household budgets due to the rising costs of groceries, utilities, and other daily necessities.