VA pension benefits are financial assistance payments offered by the Department of Veterans Affairs to help some wartime Veterans and their survivors. The Veteran Pension program will provide monthly payments to eligible wartime veterans who meet the program eligibility requirements. Some of these requirements are based on age or disability while others are determined by limits on income or net worth.
Keep reading to learn more about VA pension benefits and to find out if you are eligible for the VA retirement program.
The current VA pension rates for veterans includes financial assistance for VA Aid and Attendance rates. Veterans who are eligible to receive these benefits will get assistance based on their countable income. The payment amount is based on their countable income and a limit that is established by the federal government known as Maximum Annual Pension Rate (MAPR).
Your countable income is calculated based on how much you earn and receive from other income sources such as Social Security benefits, retirement payments, investments, and any additional income you or your dependents receive. In some cases, certain costs such as non-reimbursable medical expenses that are not covered by your insurance can be counted to help reduce your countable income.
The Maximum Annual Pension Rate is the maximum amount of financial assistance you can receive from a VA pension. This amount is determined based on how many dependents you have, if your spouse is a qualified veteran, and whether your disabilities make you eligible for Housebound or Aid and Assistance benefits. MARPs are adjusted for cost-of-living increases on a yearly basis.
On October 18, 2018 there was a policy change in how the VA calculates your net worth. Net worth includes you and your spouse’s assets and total income when calculating Veteran Pension benefits. If your child’s net worth exceeds the net worth limit, they will not be considered a dependent when determining VA pension rates.
When you subtract your total mortgages from the fair market value of all your real and personal property, you get the value of your assets. Real property includes any land and buildings you own, while property assets include things like collectables, investments, boats, and more.
Your annual income includes the money you earn in a full year from your job or from payments you receive from retirement or annuity. This includes salary or hourly wages, commissions, bonuses, overtime, and paid tips. Certain expenses can be subtracted from your net worth such as educational expenses and medical expenses.