TORONTO - The Harper government is proposing a new retirement benefit for some of the country's most severely disabled soldiers to help stave off financial hardship when they hit old age.

Veterans Affairs Minister Erin O'Toole says it would provide wounded troops a monthly income support payment, beginning at age 65.

The veterans ombudsman says more than 400 severely disabled veterans, mostly from Afghanistan and recent peacekeeping missions, don't receive certain allowances -- or a Canadian Forces pension -- and their disability income replacement ends at retirement.

The proposed new benefit, which would close that gap, is one of a series of steps the Conservatives plan to take over the next month to help repair their frayed relationship with the veterans community.

O'Toole also says that the retirement stipend would extend to families through a payment once the veteran passes away.

Veterans Affairs estimates that by 2020, approximately 5,800 veterans and survivors would qualify for the new benefit, which still needs parliamentary approval.