Social Security Commissioner Martin O’Malley emphasized that the increase will help millions manage expenses as inflation cools. However, the 2.5% adjustment is notably lower than the previous years’ increases, which were 3.2% in 2023, 8.7% in 2022, and 5.9% in 2021.
Veterans Benefits to Mirror Social Security Increase
For a veteran receiving $1,500 a month in disability payments, a 2.5% increase would add about $38 per month. In comparison, the 2023 adjustment provided an extra $48 for the same veteran.
Around 5 million veterans and 2 million military retirees receive benefits through the Department of Veterans Affairs (VA). Legislation passed last month ensures that VA benefits will increase in line with Social Security COLA.
The increase will apply to various VA payouts, including disability compensation, clothing allowances, and dependency benefits.
Roughly 68 million Americans receive Social Security benefits, with the average beneficiary expected to see an additional $50 a month. Notifications about the changes will be sent by mail starting in early December.