Question Period Note: FINANCIAL BENEFITS BEYOND AGE 65

• The Income Replacement Benefit (IRB) is a monthly, taxable benefit payable up to age 65.
• The IRB provides a source of monthly income to support a Veteran’s successful completion of rehabilitation and return to work.
• The IRB may be “continued” past the completion of rehabilitation and age 65 if the Veteran is determined to have a Diminished Earnings Capacity (DEC) as a result of the health problem for which they are eligible for the IRB.
• VAC also offers financial supports for Veterans of any age who are facing financial emergencies hardship (e.g. Veterans Emergency Fund).VAC regularly reviews its programs to ensure that they continue to meet the needs of Veterans and their families.

Over the years, concerns regarding VAC’s Financial Benefits post age-65 have been raised by a number of stakeholders including Veterans and their families, the House of Commons Standing Committee on Veterans Affairs (ACVA), Royal Canadian Legion, and the Veterans Ombud.
In 2006, VAC introduced the New Veterans Charter, offering programs such as Rehabilitation Services, the Earnings Loss Benefit , and the Supplementary Retirement Benefit to support Canadian Armed Forces (CAF) Veterans transitioning to life after service.
Consistent with federally sponsored long term disability insurance programs, when introduced, the Earnings Loss Benefit was payable until age 65 in recognition of its intent of replacing income from the workforce.
After the implementation of the New Veterans Charter in 2006, various new supports were introduced to support the financial well-being of Veterans, including the introduction of the Retirement Income Security Benefit in 2015.
The Earnings Loss Benefit, Supplementary Retirement Benefit and Retirement Income Security Benefit were repealed in 2019 with the coming into force of the Income Replacement Benefit (IRB), a benefit which addresses the financial security of Veterans both before, and after, age 65.
Veterans must apply for IRB before turning 65.
VAC’s Rehabilitation Services remain accessible at any age and include physical, psycho-social, and vocational support.

QUICK FACTS & FIGURES
Item(s)
• IRB may be payable to a Veteran who has applied for the IRB, also made an application for VAC Rehabilitation Services and Vocational Assistance , and who has a physical or mental health problem resulting primarily from service that is creating a barrier to re-establishment in civilian life.
• Based on 2025 rates, IRB ensures a Veteran’s total income (before offsets such as employment income, Old Age Security, disability insurance payments, and retirement pensions) is at least:
• $58.826.09 for eligible Veterans under age 65; and
• $41,178.26 for eligible Veterans over age 65.
• As of October 31, 2025,
• There were approximately 33,000 Veterans entitled to IRB, of these:
• Approximately 3,000 were over age 65; and
• Approximately 30,000 were under age 65.
• Of the approximately 33,000 Veterans entitled to IRB, the majority (68%) were entitled to continuation of IRB (past completion of rehabilitation and age 65) based on their being determined to have a Diminished Earnings Capacity prior to age 65.
Income of Canadian Forces Veterans
• CAF Veterans are less likely to have low income than other Canadians; based on 2021 Census Data:
• There were a total of approximately 460,000 Veterans residing in Canada;
• The median income of every age cohort of Veterans was higher than that of non-Veterans.