While the U.S. Department of Veterans Affairs has announced progress with hiring initiatives to provide disability benefits and services, many of our nation’s heroes are facing health challenges, both visible and invisible.
Transitioning from active duty to civilian life can be difficult, as can managing a disability. Taken together, veterans with disabilities can struggle to navigate a complex benefits system, interpret all the options available and determine which benefits may apply to their situation.
All citizens, especially those who have dedicated their lives to the armed services — sometimes sacrificing their physical health in service to the nation — deserve to feel financially secure and supported on their healthcare journey. However, veterans are often unaware of the full array of benefits that are available to help them achieve stability.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
When individuals enlist in the armed forces, they may anticipate a tough road ahead; however, they are likely more concerned with difficult deployments or stressful combat rather than incurring a disability either on the job or later in life.
When an unforeseen disability renders the service member unable to work, it can leave them feeling particularly vulnerable. According to a 2022 survey conducted by Allsup, a nationwide provider of disability representation, nearly one-third of veterans who file for VA disability benefits do so more than 10 years after they leave the military, as many are daunted by the complexities of the disability claim process.
Many veterans don’t know what they qualify for
The same survey reported that more than half of veterans are unaware they could qualify for both VA and Social Security disability benefits, otherwise known as Social Security Disability Insurance, or SSDI. This is an important gap in knowledge and carries long-term implications for veterans, who may miss out on valuable access to income, dependent benefits and other components of this federal disability insurance program.
About 1.5 million veterans live below the federal poverty level, and an additional 2.4 million veterans were living paycheck to paycheck before the pandemic, a number that has since surged.
According to the U.S. Department of Labor, between June 2022 and May 2023, the unemployment rate for veterans with a disability was 4.9%, close to double that of veterans without a disability and more than the national average unemployment rate (3.7%).
Despite these statistics, the outcome does not have to be bleak. Veterans have avenues to pursue support, overcome the complexity of navigating disability benefits programs and receive the help and care they deserve. More important, efforts to improve awareness about these benefits can make a difference in filling the gap. Civilians can help with communication efforts, assist veterans by connecting them with advocates who understand the disability benefits system and voice their support for expanded benefits for veterans.
Recent data from the ADA National Network found that “nearly a third (29.6%, 3.5 million) of the 12 million veterans ages 21-64 report having a disability.” However, according to AARP, only about 950,000 were receiving SSDI benefits as of 2016, the most recent year from which data is available.
If we make the comparison of data, then that appears to leave over 2.5 million veterans with disabilities unaccounted for — many of whom could be eligible for SSDI benefits to help alleviate financial hardships they may be facing.
Veterans who are unable to work may feel limited in their options, especially as factors outside of their control, such as a slow economy, put more stress on Americans’ wallets.
Social Security Administration also pays disability benefits
Thanks to colleagues, veterans services and various VA materials, many veterans know that the U.S. Department of Veterans Affairs administers and pays disability compensation to those with a condition incurred during active military duty. Many veterans don’t realize that the Social Security Administration oversees and pays disability benefits to those with severe medical conditions who are unable to work for 12 months or longer, or have a terminal health condition.
The two disability benefits are separate programs, so each benefit must be claimed separately. It’s possible the prospect of filing a claim, and possibly facing multiple appeals in the two disability programs, feels overwhelming. However, assistance exists in the form of advocates who help veterans with the multiple steps, including forms, medical evidence and submission process required through both the VA and SSA.
To make the most of these financial alternatives, veterans must be made aware of the programs that exist, especially when they lack the knowledge or instruction regarding the requirements that could make them eligible. Community members, including fellow veterans, civilians, political leaders and healthcare advisers, play a crucial role in ensuring that former service members with disabilities do not fall through the current gaps in a system that results in a maze of confusion. This is especially important given the current circumstances in which many veterans with disabilities find themselves.
For veterans who cannot work, there are ways to manage finances, leverage benefits and ensure they have the resources they need to feel secure. After they’ve selflessly sacrificed their lives, and at times, their health, for the citizens of our nation, it is our responsibility to ensure veterans are met with support as they transition to civilian life and manage their disability.
Education about the breadth of benefits that are available to them is the essential first step, so veterans attain the financial security and disability benefits they have earned.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read This
Roth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the Case
A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Don't Get Caught by the Medicare Tax Torpedo: A Retirement Expert's Tips to Steer ClearBetter beware, because if you go even $1 over an important income threshold, your Medicare premiums could rise exponentially due to IRMAA surcharges.
-
I'm an Insurance Pro: Going Without Life Insurance Is Like Driving Without a Seat Belt Because You Don't Plan to CrashLife insurance is that boring-but-crucial thing you really need to get now so that your family doesn't have to launch a GoFundMe when you're gone.
