The Canadian Armed Forces (CAF) and Veteran Affairs Canada (VAC) offer a variety of programs and services that can help ensure financial health and security for you and your family throughout your military career and as a Veteran.
VAC financial programs
VAC financial programs can assist you and your family when you need it. It includes:
- Compensation for service-related illness or injury
- Monthly payments to support your income
- Assistance to pay for medical costs
- Emergency funding during a financial crisis
- Death and bereavement benefits
- Compensation for former prisoners of war
VAC financial advice
Financial advice on managing lump-sum payments
If you receive a lump-sum payment, VAC will pay for professional financial advice to help you decide how to invest and manage your lump-sum.
Transition to post-military life
If you’re medically releasing or released, you can get help and advice during the transition to post-military life with the Veteran Family Program.
Learn more about VAC financial advice.
VAC Pension for Life
This program is a combination of benefits that provide recognition, income support, and stability to members and Veterans who experience a service-related illness or injury. It includes:
- Tax-freeTax-free Money that you do not pay tax on.+ read full definition disability benefits for pain and suffering
- Taxable IncomeTaxable income The amount of income you have to pay tax on, after tax credits and deductions.+ read full definition Replacement Benefits to compensate for income loss if you’re in rehabilitation
Learn more about Pension for Life.
In most cases, disability pensions, allowances and payments for Veterans with service-related disabilities are received taxTax A fee the government charges on income, property, and sales. The money goes to finance government programs and other costs.+ read full definition-free. There is no need to pay income taxIncome tax A charge you pay based on your total income from all sources. The Canadian government and your province set the rate.+ read full definition on them.
Canadian Armed Forces (CAF) pensions
CAF pension plans are provided for active or retired members and survivors of deceased plan members. The pensionPension A steady income you get after you retire. Some pensions pay you a fixed amount for life. Others save up money for you while you are working. You use that money to create income after you retire.+ read full definition benefit you may receive depends on the type of plan you are in and on your years of pensionable service.
FAQs about pensions for active members.
Financial planning, insurance, and investment advice
You can also take advantage of a broad range of financial services and advice offered by SISIP Financial, a division of the Canadian Armed Forces. Located at major bases, wings or units across the country, SISIP is the exclusive provider of financial services to Canada’s military community. Their advisors understand the realities of military life and can recommend financial solutions to meet your needs.
They provide assistance with:
- Financial counselling
- Savings and budgeting
- Financial planning
Learn more about SISIP Financial.
As a service member, be sure to familiarize yourself with all the programs and services available to help you manage your finances. Like any career, it’s important to budgetBudget A monthly or yearly estimated plan for spending and saving. You work it out based on your income and expenses.+ read full definition, plan ahead and save for your retirement to create financial health and security for you and your family for years to come.