| FOR IMMEDIATE RELEASE May 13, 2010 |
Contact: Mark Leach Media Relations 817-569-2419 msleach@firstcommand.com www.firstcommand.com |
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Federal workers pump dollars into long-term financial goals, First Command reports
First Command Financial Behaviors Index™ reveals federal employees are putting more dollars into retirement accounts and long-term debt payments than other middle-class consumers
FORT WORTH, Texas – Federal employees are outpacing the general population in putting dollars toward retirement and long-term debt, continuing a trend toward more frugal financial behaviors, according to the First Command Financial Behaviors Index™.
Results of the Index’s semi-annual federal employee survey indicate that the average monthly amount federal employees put into their retirement accounts during the first quarter totaled $1,221, about 40 percent more than the rank and file of average Americans. And the average long-term debt payments by federal employees totaled $1,217, representing 14 percent more than the general population.
“Federal employees are clearly focusing on improving their long-term finances,” said Scott Spiker, CEO of First Command Financial Services, Inc. “We saw this trend emerging in the fall, when federal employees dramatically increased their retirement savings at a time when the general population was pulling back. These families are responding to the recent economic turmoil by taking control of their personal finances and committing to a more financially responsible lifestyle.”
The substantial dollars allocated to long-term debt in the first quarter also helped federal employees outpace the general population in overall debt payments ($2,132 versus $2,033). However, federal employees trailed average Americans in overall savings activity. Average monthly payments for short-term and long-term savings and retirement accounts totaled $2,006 for federal employees compared to $2,292 for the general population.
Interestingly, federal employees with a financial plan put a higher amount, on average, into savings and investment accounts than those without a plan. During the first quarter, overall savings for those with a financial plan totaled $2,542 compared to $1,781 for those without. Federal employees with a financial plan have greater feelings of comfort with savings than those without a plan. In the first quarter, 20 percent of federal employees with a financial plan felt extremely or very comfortable with their current savings compared to only 11 percent of federal employees without a plan – a nine-point gap. A similar disparity of 11 points exists with respect to comfort with current debt levels – 37 percent versus 26 percent.
“Federal employees with a financial plan also feel less financially stretched than those without a plan,” Spiker said. “Our research and half century of experience working with middle-class consumers continues to show that people who save more and cut debt feel less stressed and more optimistic about their personal finances.”
About the First Command Financial Behaviors Index™
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index™ assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 U.S. consumers aged 25 to 70 with annual household incomes of at least $50,000. Results are reported quarterly. The margin of error is +/- 3.1 percent with a 95 percent level of confidence. (Note: Federal employee data is collected twice a year in September and March through a survey of approximately 410 members of federal households. The margin of error is +/- 4.8 percent.) www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design and statistical analysis of behavioral and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including First Command Bank and First Command Financial Planning, assist American families in their efforts to build wealth, reduce debt and pursue their lifetime financial goals and dreams—focusing on consumer behavior as the first and most powerful determinant of results. Through personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals