The changes come as households continue to face elevated living expenses, including grocery bills, insurance premiums and funeral costs. While the burial allowances have already increased, the final adjustment to disability payments remains dependent on inflation figures scheduled for release on October 14.
Veterans Could Receive Nearly $1,800 More in Annual Disability Compensation
The Department of Veterans Affairs adjusts disability compensation to account for inflation, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The same measure determines annual cost-of-living adjustments for Social Security recipients.
According to Newsweek, Warrior Disability estimates that the 2027 cost-of-living adjustment (COLA) could range from 3.2% to 3.6%. If confirmed, that would exceed the 2.8% increase implemented for 2026 and the 2.5% adjustment recorded for 2025.
The financial impact would vary considerably among recipients. Veterans with a 10% disability rating currently receiving approximately $180 monthly could see payments increase to $186 under a 3.2% adjustment. That would represent roughly $69 in additional annual compensation.
For veterans receiving higher benefits, the difference would be larger. A recipient with a 100% disability rating, a spouse, two dependent parents and one child could receive approximately $1,794 more annually. Monthly compensation in that example would increase from $4,671 to $4,821.
Approximately 6.3 million veterans currently receive disability compensation. Because adjustments are calculated as percentages, those receiving larger monthly payments generally experience greater increases in dollar terms.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek that these adjustments help protect veterans from declining purchasing power as everyday expenses increase. The final 2027 adjustment will be determined after September inflation figures become available. Updated compensation rates are expected to affect payments beginning in late 2026 and early 2027.
Higher Burial Allowances Offer Additional Assistance With Funeral Expenses
Separate from disability compensation, the VA has already increased certain burial benefits for fiscal year 2026, providing additional reimbursement to eligible families facing funeral and interment expenses.
Families may now receive up to $1,002 for a non-service-connected burial, compared with the previous allowance of $978. An additional plot or interment allowance of up to $1,002 may also be available when the veteran is not buried in a national cemetery.
For deaths connected to military service, the VA continues to provide burial reimbursement of up to $2,000.
According to the National Funeral Directors Association, the national median cost of a funeral involving viewing and burial reached $8,300 in 2023. That figure excludes cemetery expenses and other charges that can increase the total.
These costs remain a concern for families arranging funerals outside the national cemetery system, where burial expenses can amount to thousands of dollars. Kevin Thompson, chief executive of 9i Capital Group, told Newsweek that rising living expenses and burial costs have placed additional pressure on households.
