By Tamara Sanders, Head of Client Care

The Cost of Living Adjustment (COLA) for Veterans and surviving spouses receiving pension benefits, including Pension with Aid and Attendance, is an annual increase designed to ensure these benefits keep pace with inflation. This adjustment is based on changes in the Consumer Price Index (CPI), which measures the cost of goods and services in relation to wages. Specifically, the CPI-W, or Consumer Price Index for Urban Wage Earners and Clerical Workers, assesses the costs of goods against wages and is determined by the Bureau of Labor Statistics within the Department of Labor.

 

Effective December 1, 2024, there was a 2.5% increase. The new net worth limit for eligibility for the Pension with Aid and Attendance benefit is $159,240.00. When determining eligibility, assets do not include one primary residence, one car, and two acres of land. This increase may assist Veterans and surviving spouses who previously did not qualify due to financial reasons. Additionally, it may impact the medical-to-income ratio for some Veterans and surviving spouses.

 

Here are the new benefit amounts for 2025. If a client’s deposits are lower than the new 2025 amounts, please have them contact us today.

2025 Benefit Amounts

Status                             Total Monthly Benefit

Veteran                          $2,358

Surviving Spouse      $1,515

Couple                            $2,795

 

For some clients, this means we will need to update their accounts by collecting necessary documents, such as the VA letter, Social Security Administration (SSA) documentation, pension statements, and bank statements. This information is essential for determining continued eligibility for benefits. Typically, the COLA for VA pensions is tied to the same percentage increase as Social Security benefits, ensuring consistency in adjustments for individuals receiving both.

 

This adjustment helps ensure that Veterans and surviving spouses continue to receive the necessary support, even as economic conditions fluctuate. While supporting our current clients in maintaining eligibility, we also want to provide assistance to Veterans and surviving spouses who may not have previously qualified due to financial reasons.

 

Our commitment is to support Veterans, surviving spouses, and their families in navigating their continued eligibility to help ensure that home care services continue for as long as they are needed.

 

VCC is dedicated to simplifying the process not only for our clients but also for our partners by offering straightforward and user-friendly resources. Our new 2025 Referral Form and Reference Sheet are now available for download. If you have a client who did not previously qualify, please notify our team today so we can re-screen the client to determine whether the 2025 COLA increase could help.

 

With our partnership, let’s make an impact for even more Veterans and families in 2025.