Income can be an important determinant of health and satisfaction with life after release from the military. For Veterans, income is also a factor in successful transition from military to civilian life.

What is this Research About?

This report examines pre- and post-release income trends for Regular Force Veterans and their families. The study also looks at the main industries Veterans are working in, continuity of employer, change in family status and differences between male and female Veterans.  

What did the Researchers Do?

Through a Statistics Canada data linkage, before-tax incomes for 42,645 Regular Force Veterans (released 1998 to 2014) were examined for their pre-release year, the average three-year period after release and up to 16 years post-release.  Income includes earnings from a job, pensions, investments, and government transfers such as employment insurance.

What did the Researchers Find?

In general, Veterans experienced little decline in income after leaving the military (i.e., post-release) and few experienced low income.  More specifically:

• Post-release income reached pre-release levels after three years and continued to increase
• The largest source of income was employment earnings, followed by pensions and government transfers.
• Female Veterans had a much greater decline in income than male Veterans and their post-release earnings were much lower
• Medically-released Veterans and those with shorter lengths of service also experienced declines in income
• The rate of low income peaked in the first year post-release but shrunk to half that within a few years
• Low income rates were higher for those of low rank, who served for a shorter period, and who released involuntarily
• The vast majority of Veterans worked post-release. The largest post-release employer was the public service.
• It was common for Veterans to change post-release employers within the first three years post release.
• Employment earnings were higher for those working in mining, utilities and professional services and lower for those working in accommodations/food services, retail and agriculture.
• Families relied heavily on the Veteran’s income, both pre- and post-release, and the spouse’s income rose after the Veteran’s release.
• Veterans who completed VAC’s Rehabilitation program recovered their pre-release income fairly quickly and eventually exceeded it, but their employment earnings remained low
• Labour market earnings replacement was much lower for younger Veterans with disabilities than for their non-injured counterparts

Source

MacLean MB, Van Til L, Poirier A and McKinnon K. Pre- and Post-Release Income of Regular Force Veterans: Life After Service Studies 2016. Charlottetown (PE): Veterans Affairs Canada, Research Directorate Technical Report; May 1, 2018.

https://cimvhr.ca/vac-reports/data/reports/MacLean-MB-2018-Pre-and-Post-release-Income-LASS-2016.pdf