2022 veterans pension rates will see a 5.9% cost-of-living increase, based on the Social Security Administration’s 2022 Cost of Living Adjustment (COLA).
Congress passed legislation in early October to increase veterans’ disability compensation and other benefits in tandem with the Social Security COLA.
To calculate the Veterans Pension rate increase, compare the average of the July, August and September 2020 indices with the average of 2019’s third quarter. Veterans Pension rates for 2022 go into effect Dec. 1, 2021.
Cost-of-Living-Adjustments (COLA) determine Veterans Pension rate increases. See our COLA increase watch for the most recent updates.
2021 Veterans Pension Details
Effective Date: 12/01/2021
First Paycheck: 12/31/2021
Veterans Pension Increase Factor: 5.9%
Net Worth/Income Limit: $138,489
Standard Medicare Deduction: The Social Security Administration will determine the actual amount based on an individual’s income.
Maximum Annual Pension Rate (MAPR):
MAPR is based on how many dependents you have, if your spouse is also a qualifying veteran and if your disabilities qualify you for Housebound or Aid and Attendance benefits. MAPRs are adjusted annually for cost-of-living increases.
Find your current MAPR amount using the tables below.
2022 Veterans Pension Rate Tables
For Veterans With No Dependents:
| If you have no dependents and | Your MAPR amount is: |
|---|---|
| You dont qualify for Housebound or Aid and Attendance benefits | 14,753 |
| You qualify for Housebound benefits | 18,029 |
| You qualify for Aid and Attendance benefits | 24,610 |
Note:
If you have medical expenses, the amount you can deduct should be over 5% of your MAPR. That comes to $737 for a veteran with no spouse or child.
For Veterans With at Least One Dependent Spouse or Child:
| If you have one dependent and | Your MAPR amount is: |
|---|---|
| You donÂt qualify for Housebound or Aid and Attendance benefits | 19,320 |
| You qualify for Housebound benefits | 22,596 |
| You qualify for Aid and Attendance benefits | 29,175 |
Note:
- If you have more than one dependent, add $2,523 to your MAPR amount for each additional dependent.
- If you have a child who works, you may exclude their wages up to $12,950.
For Two Veterans Who Are Married to Each Other:
| If youre two veterans who are married to each other and: | Your MAPR amount is: |
|---|---|
| Neither of you qualifies for Housebound or Aid and Attendance benefits | 19,320 |
| One of you qualifies for Housebound benefits | 22,596 |
| Both of you qualify for Housebound benefits | 25,870 |
| One of you qualifies for Aid and Attendance benefits | 29,175 |
| One of you qualifies for Housebound benefits and one of you qualifies for Aid and Attendance benefits | 32,443 |
| Both of you qualify for Aid and Attendance benefits | 39,036 |
Note:
- If you have more than one dependent, add $2,523 to your MAPR amount for each additional dependent.
- If you have a child who works, you may exclude their wages up to $12,950.
- If you have medical expenses, you can deduct the amount that is over 5% of your MAPR amount. That is $966 for a veteran with one dependent.
About VA Veterans Pensions
The VA Veterans Pension provides monthly payments to veterans who meet wartime service, age and/or disability requirements. This VA pension takes into account net worth and income restrictions, as we’ll see below.
VA Veterans pensions provide supplemental income intended to help veterans and their families manage financial challenges.
This tax-free benefit is for wartime veterans with at least 90 days of active duty service, including at least one day during a wartime period. Additionally, your family’s annual income must be less than the amount set by Congress to qualify for the pension.
The pension benefit is the difference between your “countable” income and the annual pension limit that Congress sets. The Department of Veterans Affairs established the pension rate tables, including the supplements for Housebound, and Aid and Attendance.
Who qualifies for Veterans Pension benefits?
Veterans Pension program requirements include both of the following:
- The applicant does not have a dishonorable discharge, and
- The applicant’s annual family income and net worth must be at or below limits set by Congress
Your net worth includes all the personal property you own, except your house, vehicle and “basic home items you wouldn’t take with you if you moved to a new house,” according to the VA’s website. Your net worth includes that of your spouse. It also includes any investments (stocks or bonds), but it does not include any debt.
In addition to the above, the following eligibility criteria also apply, according to the VA website:
- The applicant began active duty before Sept. 8, 1980, and served at least 90 days on active duty with at least one day during wartime, OR
- The applicant entered active duty as an enlisted member after Sept. 7, 1980, and served at least 24 months or the full period when called or ordered to active duty (with some exceptions) with at least one day during wartime, OR
- The applicant is an officer and started on active duty after Oct. 16, 1981, and hadn’t previously served on active duty for at least 24 months.
And finally, at least one of the following statements must also apply. You:
- Are 65 years old or older, or
- Have a permanent and total disability, or
- Are a patient in a nursing home for long-term care because of a disability, or
- Are getting Social Security Disability Insurance or Supplemental Security Income
The amount you receive as your pension depends on your countable income, how many dependents you have and other variables.
Net Worth Limits
Net worth limits for VA Pensions are subject to change. For the period of Dec. 1, 2021, to Nov. 30, 2022, the net worth limit to be eligible for benefits is $138,489. Those with a higher net worth will not qualify for a VA Veterans Pension.
How Net Worth Limits Are Calculated
In 2018, the VA made changes to how an individual’s net worth is calculated in order to determine eligibility.
Because the VA net worth cap on this pension program is based on the overall amount, both the applicant’s and their spouse’s assets and income must be reported. Children with a net worth exceeding the applicant’s are not counted as dependents for the purpose of establishing net worth.
When reporting your assets, you will need to report the fair market value “of all your real and personal property,” according to the official VA website. This does not include your mortgages. Real property counts as taxable real estate (land and buildings) that you may own. Personal property can include:
- Investments
- Furniture
- Boats
Your countable annual income is defined by the VA as “the money earned in a year from a job or from retirement or annuity payments” up to and including:
- Salary or hourly pay
- Bonuses
- Commissions
- Overtime
- Tips
How to Apply for Veterans Pension with VA Form 21-527EZ
Glossary of Terms
- A & A – Aid & Attendance – A&A is a benefit paid on top of a monthly pension. It means a veteran requires the aid of another person to perform activities of daily living OR is blind or meets other specific visual acuity requirements OR is a patient in a nursing home because of physical and/or mental incapacity.
- Child Earned Income Exclusion – The amount of earnings excluded from a dependent child.
- Countable Income – This includes income from most sources, as well as from any eligible dependents. It generally includes earnings, disability and retirement payments, interest and dividend payments, and net income from farming or a business. Some expenses, such as unreimbursed medical expenses, may reduce countable income.
- Death Pension – It is intended to supplement the income of a surviving spouse or child who is in need of financial assistance by providing a minimum level of financial security.
- Housebound – The qualifications are: Single disability rated 100% and separate disabilities rated 60% or more (veterans only) OR Permanently housebound due to disabilities per 38 CFR 3.351(d) OR Hartness v Nicholson (2006) when a pension has been granted based on the veteran being age 65 or older.
- MAPR – The Maximum Annual Pension Rate (MAPR) is the maximum amount of pension payable to a veteran, surviving spouse or child. The MAPR fluctuates based on individual circumstances (number of dependents, allowances for Housebound or Aid & Attendance). The MAPR is reduced for each dollar of income that the veteran, surviving spouse, child, or their families have.
- MBW – Mexican Border War.
- MIW – Minimum Income Annuity.
- Net Worth – It is the total of your or your beneficiary’s assets and annual income. Assets included are bank accounts, stocks, bonds, mutual funds, annuities, and any property other than your residence and a reasonable lot area. The VA will determine whether assets are of a sufficiently large amount that one could live off of them for a reasonable period of time. The net worth limit increases by the same percentage as the social security cost-of-living increase.
- Penalty Period – A penalty period is the length of time during which a survivor isn’t eligible for pension benefits because they transferred assets for less than fair market value during the look-back period. This may apply if those transferred assets would’ve caused the survivor’s net worth to be over the limit mentioned above. However, not every asset transfer is subject to this penalty.
- Veterans Pension – This is a tax-free monetary benefit payable to low-income wartime Veterans.
- SAW – Spanish-American War.
- SBP – Survivor Benefit Plan.
- SS – Veterans Surviving Spouse.
- Survivors’ Pension – Tax-free monetary benefit payable to a low-income, widowed spouse and/or unmarried child(ren) of a deceased veteran with wartime service.
