。
She lives on a meager pension.
Literal
[topic-は] meager pension [with-で] is-living.
わずか is a な-adjective meaning 'a small/slight amount,' often with a tone of pity or insufficiency — わずかな + noun ('a meager X'). The instrumental で here marks 'by means of' — the resource one is using to accomplish something — distinct from で marking location ('at') or method ('with a pen'). The verb 暮らす ('to live, get by') refers specifically to the daily business of subsistence and lifestyle, distinct from 生きる ('to be alive') or 住む ('to reside'). Pension life is a culturally salient topic in Japan, where an aging society and decades of debate over pension reform make 年金 a charged everyday word.