Veterans: watch for pension poaching, paid "claim help" and benefit buyouts

What's happening

Veterans Day is Wednesday, November 11. It's also a time when veterans and their families hear a lot about benefits, and scammers use that. The FTC, the VA and the VA's Office of Inspector General warn about three schemes in particular: pension poaching, paid "help" with claims, and offers to buy your future benefits for a lump sum.

The FTC's message is short: "No one can guarantee you'll get benefits from the VA." Only the VA decides who gets what.

At a glance

• Filing a VA claim is free. VA-accredited representatives help at no cost, and the FTC says never pay money upfront.
• Pension poaching: advisers moving your savings into trusts or annuities so you "qualify" for VA Pension.
• Benefit buyouts: a lump sum now in exchange for part of your future payments, usually worth far less.
• Check accreditation with the VA's accreditation search before sharing any details.
• Report to ReportFraud.ftc.gov and your state attorney general.

How the schemes work

Pension poaching. VA Pension is needs-based. From December 1, 2025 to November 30, 2026, the net worth limit is $163,699. A "planner" may offer to move money into an annuity or trust so you fall under it, often at a seminar or retirement community. The FTC says not to work with anyone who pressures you to move your money to qualify. The catch is VA's look-back rule. Under 38 CFR 3.276, VA checks asset transfers in the 36 months before you claim. Giving away assets that would have put you over the limit can trigger a penalty period of up to five years with no pension.

Paid claim "help." The FTC warned in February 2025 about people who contact veterans offering to speed up claims or guarantee a 100% rating, for a fee or a share of your benefits. It says that if someone pressures you to sign over part of your benefits as payment, "say no. That's a scam." Accredited attorneys and agents may charge only after VA has decided your claim, under set rules.

Benefit buyouts. A company offers cash now for some of your future pension or disability payments. The CFPB says these deals, often called pension advances, are illegal under federal law for VA and Defense Department pensions. Companies may call them loans to get around that.

A worked example

This is an illustration, not a real case.

Ray, 82, has $200,000 in savings and needs care at home. A planner moves $90,000 into an irrevocable trust so he "qualifies" for VA Pension, and charges $2,500. VA reviews the claim and finds the transfer within 36 months. The amount that took him over the limit is $36,301 ($200,000 minus $163,699). VA divides that by its penalty rate of $2,874 a month and rounds down: 12 months with no pension.

At the 2026 aid and attendance rate for a veteran with no dependents, $29,093 a year, that's about $29,000 of benefits lost, plus the $2,500 fee, and his money is locked in a trust.

What to do now

1. Never pay upfront to file a VA claim or for a promised rating.
2. Check accreditation with the VA's accreditation search before talking about your benefits.
3. Don't move money to qualify for VA Pension without free advice from an accredited representative.
4. Don't sign blank forms or anything you haven't read. Take documents home first.
5. Say no to buyouts of your pension or disability payments.
6. Report it at ReportFraud.ftc.gov, to your state attorney general, and to the VA OIG hotline.

Questions

Where can I get free help with a VA claim?

From VA-accredited Veterans Service Organization representatives, claims agents and attorneys, or from VA directly. Your state veterans affairs office can also help.

Is an annuity always a bad idea?

Not always, but the FTC warns about annuities sold to make you look eligible. Ask an accredited representative how VA would treat it before you sign.

Someone has my VA login. What now?

Change your password straight away, call VA on 800-827-1000 to check your payment details haven't been changed, and report it at ReportFraud.ftc.gov.

Ways to save

For gear and gifts this Veterans Day, Promo Magpie lists current offers at JDM Military. If a phone bill is squeezing a fixed income, compare prepaid plans such as Twigby.

Sources: FTC: Veterans pension and disability benefits, FTC, February 26, 2025: Sign over a portion of your VA benefits? Nope, that's a scam, VA: Current Veterans Pension rates, 38 CFR 3.276: asset transfers and penalty periods, CFPB: Pension advances, VA OIG: Pension poaching fraud alert, June 2025