Preparing for a Medical Release from the Military 

Shannon Childs, 
SISIP Esquimalt 

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Transitioning from military to civilian life can seem overwhelming. Between paperwork, meetings, and decisions, it’s easy to feel like you’re in over your head. But there’s one area you can’t afford to overlook: your financial plan. From benefits to pensions, understanding your options is critical for setting yourself up for success after your release.

This article aims to provides clarity on key financial topics and help you prepare for your transition. For personalized advice, your local SISIP advisor is your go-to resource. They’re experts in guiding CAF members through these changes and can tailor strategies to your unique situation.

If You’ve Served 10 Years or More

If you’ve completed at least 10 years of service and are medically released, you’ll receive an immediate annuity – a guaranteed monthly income. Before your release, reach out to pension services to confirm how much you’ll receive each month.

Here’s how to make the most of it:

• Review Your Package: Meet with a SISIP advisor to go over your severance pay, pension benefits, and tax strategies.
• Explore Your VAC Options: If you’ve experienced a service-related injury, a SISIP advisor can help you decide between receiving a monthly benefit or a lump-sum payment from Veterans Affairs Canada (VAC). Each option has its own pros and cons, depending on your circumstances.

If You’ve Served Less Than 10 Years

If you’re medically released with less than 10 years of service, you won’t receive an immediate annuity, but you’re still entitled to:

• Two Years of Top-Up: Provided through SISIP Vocational Rehabilitation, this gives you a financial buffer while you transition.
• Pension Options: The money you’ve accumulated in your pension can be rolled into another qualified pension plan, deferred until age 60, or cashed out.

A SISIP advisor can explain the tax implications and long-term impacts of each option, ensuring you make the best choice for your financial future.

Three Financial Planning Principles for a Smooth Transition

• Create a Budget:  Map out your lifestyle, goals, income, and expenses for the next two years. Knowing what’s coming will give you confidence and control.
• Build an Emergency Fund: Aim to save enough to cover unexpected expenses or supplement your income until your pension kicks in. This safety net can make all the difference as you adjust to civilian life.
• Be Tax-Savvy: Taxes can significantly impact your pension proceeds. Consider strategies like using your RRSP to reduce your taxable income. A SISIP advisor can help you optimize your tax situation.

Don’t Overlook These Resources

As a releasing CAF member, you have access to a range of programs and benefits to support your financial stability. Here are a few key ones:

• Medical and Dental Plans: Public Service programs can help you and your family find the right coverage.
• Additional Programs: Explore the Disability Tax Credit, Registered Disability Savings Plan, Education and Training Benefit, and Veterans Affairs Canada claims to strengthen your financial position after releasing.
• Life Insurance: A major change in employment is a great time to review your life insurance policy to ensure it still meets the needs of you and your family.

Lean on Your SISIP Advisor

Your local SISIP advisor is an expert in financial planning for CAF members. They’ll help you:

• Define your values and goals
• Apply sound financial principles
• Access all the resources available to you

The CAF community is a lifelong network of support, and that includes the professionals at SISIP Financial. Whether you’re building a new budget, navigating pension options, or planning your long-term financial strategy, we’re here to assist you every step of the way.

This transition is a new mission – and you’re ready for it. Let’s make it a successful one together. Reach out to your SISIP advisor today to start planning for your post-release future.