What the 2026 Cost of Living Adjustment Means for the Veterans You Serve

The Cost of Living Adjustment (COLA) for Veterans and surviving spouses who receive VA pension benefits, including Pension with Aid and Attendance, is an annual increase intended to help benefits keep pace with inflation. The adjustment is based on changes to the Consumer Price Index (CPI), specifically the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers), which is calculated by the Bureau of Labor Statistics within the U.S. Department of Labor.
The most recent COLA increase for Veterans of 2.8% took effect on December 1, 2025, and impacts pension benefit amounts and eligibility thresholds. The current net worth limit for Pension with Aid and Attendance eligibility is $163,699. When determining net worth, the VA does not count one primary residence, one vehicle, and up to two acres of land. This adjustment may allow some Veterans and surviving spouses who were previously ineligible due to financial limits to now qualify. It may also positively affect the medical-expense-to-income ratio for others.
The updated benefit amounts are as follows:
- Veteran: $2,424 per month ($29,093 annually)
- Surviving Spouse: $1,558 per month ($18,697 annually)
- Couple: $2,874 per month ($34,488 annually)
If a client’s current monthly deposit is lower than these updated amounts, we encourage them to contact our team for a review.
For some clients, this adjustment will require updated documentation to confirm continued eligibility. This may include a VA award letter, Social Security Administration documentation, pension statements, and recent bank statements. COLA increases for VA pensions are generally aligned with Social Security adjustments, helping provide consistency for individuals who receive both benefits.
These annual adjustments are an important part of ensuring Veterans and surviving spouses continue to receive the support they need as economic conditions change. In addition to supporting our existing clients, we remain committed to helping identify and assist those who may now qualify due to the updated COLA thresholds.
Veterans Care Coordination remains focused on guiding Veterans, surviving spouses, and their families through the process to ensure home care services continue for as long as needed. We also strive to make the process straightforward for our partners by providing clear, practical tools. Our updated Referral Form and Reference Sheet are available for use, and we encourage partners to refer any clients who may benefit from a re-screening under the new COLA-adjusted limits.
Together, we can continue to expand access to benefits and support for more Veterans and their families.
