2026
Date published: 2026
The study of Veteran income is an important component of research efforts aimed at understanding, and ultimately better supporting, the transition from military to civilian life. Veteran Affairs Canada (VAC) works closely with the Department of National Defence (DND) and Statistics Canada to examine Veterans’ financial well-being and sources of income. Findings can inform the work of policy makers, service providers and other organizations that support Canadian Veterans.
What is this research about?
This research examined pre- and post-release income trends for Regular Force Veterans by linking military personnel records from DND to Statistics Canada’s annual tax files. The study also looked at the main industries Veterans were working in; as well as differences between male and female Veterans, and between VAC clients and non-clients.
What did the researchers do?
Researchers examined incomes for 81,125 Regular Force Veterans released from the Canadian Armed Forces between 1998-2019, using income data up to the 2022 tax year. The income data analyzed included employment earnings, pensions, investments, and government transfers such as employment insurance. Only taxable income was captured in the study which excludes any VAC disability benefits as they are tax-free.
What did the researchers find?
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The majority of Veterans in the study were:
- male (86%);
- aged 35 or older (66%);
- not VAC clients (56%);
- voluntarily released from the military (57%); and
- had served 20 years or more (57%).
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Overall, Veterans experienced little decline in income after leaving the military. On average, Veteran income:
- increased in the year of release, largely due to other income related to severance pay;
- dropped below pre-release levels during the first 3 years after release;
- reached pre-release levels within four years of release; and then
- increased steadily above pre-release income until about the 10th year after release when it levelled off.
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The largest declines in income after release were experienced by Veterans who were:
- aged 60 to 64 (a 17% decline in income);
- female (a 14% decline in income); or
- medically released (an 11% decline in income).
- The largest source of Veteran income each year post-release was employment income, followed by pensions and government transfers.
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17% of Veterans experienced low income for at least one year after releasing from the military. The rate of low income:
- was highest in the first year post-release at 6%;
- levelled off at 4% a few years after release; and
- was highest among Veterans who involuntarily released (45%), released with less than 2 years of service (44%), or released at entry level rank (41%).
- For Veterans who were employed in the year post-release, the most common industry of employment was public administration (37%), followed by administrative services (11%), and manufacturing (8%).
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Compared to their male counterparts, female Veterans, on average:
- had lower incomes both pre-lease ($75,450 compared to $86,050 for males) and post-release ($65,140 vs $84,350);
- were more likely to experience low income at least one year post-release (20% vs 17%);
- had a much greater decline in income after release (a 14% decline in income vs 2%); and
- earned 88% of what their male counterparts earned in the labour-market.
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44% of Veterans in the study were receiving benefits from VAC. Compared to non-clients, VAC clients, on average :
- were older (81% were 35 years of age or older vs 54%);
- had longer lengths of military service (68% had 20 years of service or more vs 49%);
- were more likely to have medically released (52% vs 8%); and
- were less likely to experience low income at least one year after release (11% vs 22%).
Source
Poirier A, Reyes Velez J, Sweet J, and Acorn C. Income Study 2026 Pre- and Post-Release Income of Regular Force Veterans. Charlottetown (PE): Veterans Affairs Canada, Research Directorate Technical Report; March 30, 2026.