People that have served in the United States military make sacrifices, but they are rewarded in a number of different ways. There is a retirement pension that service members can receive after 20 years of service, and there is a separate Veterans Pension for seniors and disabled veterans.
The rates have been increased for 2023, and we will provide those numbers and some additional background information in this post.
Eligibility Requirements
This benefit is available to veterans that were not dishonorably discharged that served for at least one day during a time of war. If you are a former servicemember and your tour of duty began before September 8, 1980, the length of service requirement is just 90 days.
It is 24 months for those that began their tour after this date, and if you served less than 24 months, you could potentially qualify if you completed your tour of duty.
In order to receive this pension, you must be totally and permanently disabled and/or 65 years of age or older.
Financial need is also a factor, so the Veterans Pension is not available to people that are very comfortable financially. The net worth limit in 2023 is $150,538. Your income is considered to be part of your net worth, and there is a formula that is used to make determinations.
Your home is not considered to be a countable asset for eligibility purposes, and one motor vehicle is exempt as well. Items that you have in your house that would not come along if you were to relocate are not countable assets.
Even if you are not eligible for a full benefit, you could potentially be eligible for a partial benefit based on your overall net worth.
2023 Veterans Pension Rates
There are three different forms of the Veterans Pension. The basic benefit is available to veterans that are not disabled in any way.
People that are largely confined to their homes can apply for a Housebound Veterans Pension. The Aid and Attendance version is available to veterans that need help with their activities of daily living.
The rate for a single veteran that is eligible for the maximum standard benefit is $16,037 in 2023. For a Housebound eligible veteran, the top rate is $19,598, and the max Aid and Attendance benefit is $26,752 this year.
For a veteran with one dependent, the standard benefit is $21,001. It is $24,562 for a Housebound veteran with a dependent, and it goes up to $31,714 for an Aid and Attendance eligible veteran with one dependent.
The benefit goes up by $2,743 a year for each additional dependent, and this figure applies to all of the different designations.
We Are Here to Help!
Everyone is aware of the importance of retirement planning, but there is another facet that is often overlooked. Once you reach the age of 67, your life expectancy is 85 years if you are a man, and it is 87 years for a 67-year-old woman.
It is hard to imagine how you will feel when you are an octogenarian, but there are certain challenges that go along with this type of longevity. Over 30 percent of the oldest old contract Alzheimer’s disease, and there are other reasons why people require nursing home care.
These facilities are extremely expensive all around the country, and in the Hartford area, the median cost for a year in a nursing home was over $179,000 in 2021. One year is the average length of stay, and a married couple may face two different sets of nursing home bills.
The Aid and Attendance Pension can help if you are a veteran, but Medicare does not pay for long-term care. Medicaid is another government health insurance program that does cover long-term care costs.
Since Medicaid is a need-based program, you cannot qualify if you have more than $1,600 in countable assets in your name. However, if you take the right steps in advance, you can position your assets wisely with future Medicaid eligibility in mind.
Advance planning is key, and we can help you take the right steps to preserve your legacy. You can schedule a consultation at our Glastonbury or Westport, CT elder care planning offices if you call us at 860-548-1000, and you can use our contact form to send us a message.
Mr. McCann is licensed to practice before the courts of the State of Connecticut. He is a member of the American Academy of Estate Planning Attorneys.
Mr. McCann provides to his clients, trust and estate planning, and trust and estate administration services. Formerly, Mr. McCann was an adjunct professor of economics in the State of Connecticut Community College system, and a Commissioner of the Town of Simsbury Zoning Board of Appeals.