Veterans Benefits Expecting Large Cost-Of-Living Increase
Inflation is everywhere. Prices are rising rapidly as people struggle to stay afloat. Many people are unable to work, so how can they survive financially?
There is good news on the horizon for veterans. Veterans are expected to see an increase in their benefits later this year. On September 20, Congress finalized legislation that would allow for a large boost in veterans benefits based on the cost of living.
The Veterans’ Compensation Cost-of-Living Adjustment Act passed unanimously. The act is now at the White House and needs to be signed by President Joe Biden. He is expected to approve and sign it within days.
Social Security benefits are also expecting a huge increase, and the two are tied together. The main difference is that the Social Security boost is done automatically each year. Veterans benefits, on the other hand, must be approved by lawmakers every year.
It is not known how much the benefits will increase. The 2022 rate will be announced by the Social Security Administration sometime in October. The rate is based on recent economic trends. The increase goes into effect starting with the December benefit checks.
What to Expect
Social Security beneficiaries are expected to see a 5-6% increase in their checks, which would be the biggest increase since the 1980s. In 1983, the increase was 7.4%. Although it is not expected to be that high for 2022, it could be close. The actual cost of living increase will depend on how much prices have changed between July and September.
Experts are predicting the cost of living adjustment to be anywhere from 5.6% to 6.2%. In any case, it will be much larger than the rate for 2021, which was just 1.3 percent. This amounted to an extra $20 a month, on average. A 5.5 percent increase would lead to an average increase of $83 per month. If the increase turns out to be 6.1 percent, recipients would receive an extra $93 per month, on average.
The reason for the increase is the rising prices. A gallon of unleaded gasoline is up $1 per gallon. Oil demand is growing, but supply hasn’t caught up yet. The price of hotel rooms has risen almost 20% over the past year. Used car prices have increased nearly 32 percent. Supply and demand is supposed to even out sometime in 2022, though, and it is expected that the inflation rate will drop to roughly 2 percent.
Learn More About Veterans Benefits
It takes more and more money to survive nowadays. Costs are rising for housing, food, gas, vehicles, and other areas. An increase in benefits for veterans can help immensely.
If you’re a veteran, make sure you’re getting the benefits you deserve. White Plains veterans benefits lawyer Michael Lawrence Varon can help with the claims process. We know the ins and outs and can help you obtain benefits quickly. Fill out the online form or call 914-294-2145 to schedule a free consultation.