VA COLA Increase 2027: How Much Will Veterans' Disability Benefits Increase?

Veterans receiving disability compensation from the Department of Veterans Affairs could see higher monthly payments in 2027, with early estimates pointing to a Cost-of-Living Adjustment (COLA) of around 3.5% to 3.8%.

The final increase will depend on the official calculation used for federal benefit adjustments and the adjustment is designed to help benefits keep pace with inflation, affecting veterans with service-connected disabilities and eligible dependents.

Estimates of the new COLA are generally around 3.4% to 3.8%, however, the projected figures remain estimates, and veterans should wait for the official announcement.

VA Disability Compensation is paid monthly and is tax-free. Eligibility depends on a service-connected condition and a VA Disability Rating , which runs from 0% to 100%. Payments may also vary based on eligible dependents.

Under the 3.8% projection for 2027, a veteran rated 10% would receive an estimated $187.28 per month, whilst a veteran rated 100% with no dependents would receive $4,088.25.

Veterans with ratings of 30% or higher may qualify for additional compensation based on a spouse, children, or dependent parents. The amount depends on family circumstances and the assigned rating, so estimates may not match an individual's payment.

September inflation data remain outstanding, meaning the official announcement will come on Wednesday, October 14 – thus, any rates are not an official rate approved by the Department of Veterans Affairs .

The projected rates are intended to take effect December 1 , with payments reflecting the increase generally arriving in January 2027 .

Will Social Security run out of money?

The future of Social Security in the United States remains a major financial and political concern, as the program faces growing pressure from an aging population, longer life expectancies and a changing balance between workers and retirees.

Social Security is primarily funded through payroll taxes paid by employees and employers. However, as millions of baby boomers retire and birth rates remain relatively low, fewer workers are supporting each beneficiary. This puts pressure on the program's trust funds, which help cover benefits when annual tax revenue falls short of total costs.

Social Security is not expected to simply disappear, even if its trust funds are depleted. Payroll taxes would continue flowing into the system, allowing the government to pay a substantial portion of scheduled benefits.

However, without legislative changes, beneficiaries could face automatic reductions once the relevant trust fund reserves are exhausted. For now, the Social Security Administration projects that the retirement and survivors' insurance trust fund will run out of reserves in late 2032.

At that point, ongoing income would cover approximately 78% of scheduled benefits unless lawmakers change the system. Congress could address the shortfall through measures such as increasing payroll taxes, adjusting the taxable earnings cap.