Starting in 2022, military retirees and disabled vets are due to get the largest increase in their monthly checks since 1983.
Many will see their monthly checks jump by hundreds of dollars.
The COLA (Cost of Living Adjustment) will soon be determined by the government, and all the data is pointing to an increase of at least 6% compared to 2021.
What does that mean for you?
If you’re a retiree, on average you can expect to see your monthly retirement check increase by around $160. For veterans getting disability compensation from the VA, your monthly check will go up by nearly $100 per month.
According to the Defense Department, there are around 1.87 million military retirees, with an annual average retirement payment of $30,265. The VA says nearly 5.1 million veterans receive disability compensation, with an annual benefit of $18,549.
The annual COLA increase is based on the Consumer Price Index (CPI), which is measured by the Department of Labor. That agency measures the costs of a select group of goods and services and compares those costs to the previous year. If there is an increase, retirees and many others receiving government benefits see an increase in their monthly payments for the upcoming year. If those costs go down, the government payments will remain the same in the upcoming year.Military.com
The reason next year’s checks are slated to go up so much is because throughout 2021 the cost for most goods and services has rapidly increased.
In 2021 military retirees and disabled vets saw an increase of only 1.3% in their monthly checks. So this coming year’s increase will be quite hefty in comparison.
The official COLA for next year will be announced in October by the government.