United States Department of Veterans Affairs

Veterans Pension Calculation

How Does VA Calculate Your Pension?

Your pension is calculated to be an amount equal to the difference between your income for VA purposes and the maximum annual pension rate set by Congress.

  • If, for example, the maximum annual pension rate for a veteran and spouse, as set by Congress, is $16,051 and your income combined with your spouse's income is $10,051, your VA pension will be $6,000 ($16,051 - $10,051 = $6,000) paid in monthly installments.
  • If your total family income for VA purposes is more than $16,051 in this example, then you are not eligible for VA Veterans pension for that year.  You may reapply again at any time your income for VA purposes falls below the limit.
  • A portion of your unreimbursed medical expenses (what you paid out of pocket after medical insurance pays) may reduce your income for VA purposes.     Using the example above for combined family income ($10,051):
    • If your medical expenses for a year are $8,000 and your medical insurance pays $6,400 of that, your unreimbursed medical expense is $1,600.
    • That portion of your unreimbursed medical expenses ($1,600 in the example above) which is more than 5% of the maximum rate of pension, or $802 in this example ($16,051 x .05 = $802), may be deducted from your total income for VA purposes which then increases the amount VA will pay to you.
    • Since the $1,600 out of pocket expenses is greater than $802, you may reduce your family income by $798 ($1,600 - $802). So, your income for VA pension purposes is now $9,253 ($10,051 - $798).
    • Your VA pension would then be $16,051 (maximum annual pension rate for a veteran with a spouse) minus $9,253 ( total family income for VA purposes after deducting unreimbursed medical expenses), or $6,793 for that year.

    Net worth, or corpus of estate (the value of your assets) also has a bearing on your pension eligibility.   Because VA pension is a needs based benefit, a large net worth may render you ineligible.
    Net worth and corpus of estate mean the market value, less mortgages or other encumbrances, of all real and personal property owned by the Veteran, except the Veteran's dwelling (single family unit), including a reasonable lot area, and personal effects suitable to and consistent with the Veteran's reasonable mode of life.
    There are a number of other criteria that may affect your eligibility to pension benefits such as Veterans who require regular aid and attendance to manage their activities of daily living, or who are in a care facility.   That is why we encourage you to go ahead and file an application, particularly if your countable income appears to be near the maximum.




Disclaimer --We will make every effort to keep this Internet Site current and accurate, but there will surely be times when this site will not be current.   These pages are for general information only, your best source of current information is to contact the managers of the benefits programs.