2021 Veterans Pension rates saw a 1.6% cost-of-living increase based on the COLA calculations. See the 2021 pension rates. To calculate the Veterans Pension rate increase the average of the indices of July, August, and September 2020 was compared with the 2019 3rd quarter average. 2020 Veterans Pension rates are effective 12/1/2019.
Veterans Pension rate increases are determined by Cost-of-Living-Adjustments (COLA). See our COLA increase watch for the most recent updates on a 2021 increase.
2021 Veterans Pension Details
Effective Date: 12/01/2020
First Paycheck: 12/31/2020
Veterans Pension Increase Factor: 1.3%
Net Worth/Income Limit: $130,773
Standard Medicare Deduction: Actual amount will be determined by SSA based on individual income.
Maximum Annual Pension Rate (MAPR): MAPR is based on how many dependents you have, if you’re married to another Veteran who qualifies for a pension, and if your disabilities qualify you for Housebound or Aid and Attendance benefits. MAPRs are adjusted each year for cost-of-living increases.
Find your current MAPR amount using the tables below.
2021 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 | $13,931 |
| You qualify for Housebound benefits | $17,024 |
| You qualify for Aid and Attendance benefits | $23,238 |
Note:
If you have medical expenses, you may deduct only the amount that’s above 5% of your MAPR amount ($696 for a Veteran with no spouse or child).
For Veterans with at least 1 dependent spouse or child:
| If you have 1 dependent and | Your MAPR amount is: |
|---|---|
| You dont qualify for Housebound or Aid and Attendance benefits | $18,243 |
| You qualify for Housebound benefits | $21,337 |
| You qualify for Aid and Attendance benefits | $27,549 |
Note:
- If you have more than one dependent, add $2,382 to your MAPR amount for each additional dependent.
- If you have a child who works, you may exclude their wages up to $12,550.
- If you have medical expenses, you may deduct only the amount that’s above 5% of your MAPR amount ($912 for a Veteran with 1 dependent).
For 2 Veterans who are married to each other:
| If youre 2 Veterans who are married to each other and: | Your MAPR amount is: |
|---|---|
| Neither of you qualifies for Housebound or Aid and Attendance benefits | $18,243 |
| One of you qualifies for Housebound benefits | $21,337 |
| Both of you qualify for Housebound benefits | $24,428 |
| One of you qualifies for Aid and Attendance benefits | $27,549 |
| One of you qualifies for Housebound benefits and one of you qualifies for Aid and Attendance benefits | $30,635 |
| Both of you qualify for Aid and Attendance benefits | $36,861 |
Note:
- If you have more than one dependent, add $2,382 to your MAPR amount for each additional child.
- If you have a child who works, you may exclude their wages up to $12,550.
- If you have medical expenses, you may deduct only the amount that’s above 5% of your MAPR amount ($912 for a Veteran with 1 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 features net worth and income restrictions as we’ll examine below.
VA Veterans pensions are intended to help veterans and their families cope with financial challenges by providing supplemental income.
This is tax-free benefit intended for low-income wartime Veterans with (in general) at least 90 days of active duty service, with at least one day during a wartime period. Family income must be less than the amount set by Congress to qualify for the Veterans Pension benefit.
The pension benefit is the difference between “countable” income and the annual pension limit set by Congress. Pension rate tables are established by the Department of Veterans Affairs (VA) including Housebound and Aid and Attendance supplements.
Who Qualifies For Veterans Pension benefits?
Veterans Pension program requirements include both of the following:
- The applicant has any discharge other than dishonorable discharge, and
- The applicant’s yearly family income and net worth must be at or below limits set by Congress.
Net worth includes all personal property you own EXCEPT your house, vehicle, and “most home furnishings”. Your net worth includes that of your spouse. Your net worth does not include debts. Those are the most basic requirements, in addition to both of the above being true, the following must also apply:
- The applicant began active duty before September 8, 1980, and served at least 90 days on active duty with at least 1 day during wartime, OR
- The applicant entered active duty as an enlisted member after September 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 1 day during wartime, OR
- The applicant is an officer and started on active duty after October 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 apply to you:
- 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
Those who qualify based on the criteria above have their VA Pension based on “the difference between your countable income and a limit that Congress sets” known as the Maximum Annual Pension Rate, or MAPR. Amounts of VA Pension paid may depend on your countable income, the number of the number of dependents you have, and other variables.
Net Worth Limits
Net worth limits for VA Pensions are subject to change. The information listed here is for example purposes only–the VA net worth limits for Veterans Pensions from December 1, 2020, to November 30, 2021 was set at $130,773. Those who have net worth that exceeds this cap may not qualify for a VA Veterans Pension.
How Net Worth Limits Are Calculated
The VA made alterations to the Veterans Pension program in 2018, altering the way the agency assesses net worth to make a determination about VA pension eligibility.
Because VA net worth caps on this pension program are based around overall net worth, both the applicant and spouse assets and income must be reported. Children who have net worth that exceeds 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 VA official site. This will be minus the amount of your mortgages where applicable. Real property is land and buildings taxable as real estate 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 in addition to monthly pension. Require the aid of another person to perform activities of daily living OR be blind or meet other specific visual acuity requirements OR be a patient in a nursing home because of physical and/or mental incapacity
- Child Earned Income Exclusion – Excluded earnings amount from a dependent child
- Countable Income – Includes income from most sources as well as from any eligible dependents. It generally includes earnings, disability and retirement payments, interest and dividend payments from annuities, and net income from farming or a business. Some expenses, such as unreimbursed medical expenses, may reduce countable income
- Death Pension – Intended to supplement the income of a surviving spouse or child who is in need of financial assistance and provide a minimum level of financial security
- Housebound – Qualifications: 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 pension has been granted based on the veteran being age 65 or older
- MAPR – Maximum Annual Pension Rate – The MAPR is the maximum amount of pension payable to a veteran, surviving spouse or child. MAPR fluctuates based on individual circumstances related to number of dependents and if Housebound or Aid & Attendance qualifications. 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 – Net worth is the total of your or your beneficiary’s assets and annual income. Includes assets such as 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. Net worth limit will increase by the same percentage as Social Security cost-of-living increases
- Penalty Period – A penalty period is a length of time when 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 – 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, un-remarried surviving spouse and/or unmarried child(ren) of a deceased Veteran with wartime service
