First Command Reports: Eldercare creates severe money concerns for military families

FORT WORTH, Texas – The aging of America is bringing unexpected financial challenges to many military households, according to the First Command Financial Behaviors Index^®.

 First Command’s latest eldercare spending survey reveals that 55% of middle-class military families (commissioned officers and senior NCOs in pay grades E-5 and above with household incomes of at least $50,000) currently care for a parent or other elderly family member. That’s up from 13% in 2012 when the eldercare survey was launched.

Eldercare costs represent a notable financial strain on many military families. Sixty-one percent of survey respondents say the costs are more than they expected, and 42% say these expenses represent a severe financial concern for their household.

Caregiving families are currently reporting average monthly costs of $2,102, which is up 11% from the previous year. Survey respondents are spending on:

• Home care services (44%)
• Nursing homes (22%)
• Health care services (8%)

Financial concerns related to eldercare costs are prompting many families to plan ahead and seek out professional advice.

“Half of military families who are caring for an elderly family member said they planned in advance for the costs,” said Mark Steffe, president/CEO of First Command Financial Services, Inc. “Two out of five sought help from a financial advisor. Working with a knowledgeable financial coach is a prudent way for military families to prepare for and deal with the economic realities of eldercare while continuing to pursue their own financial goals.”

The annual survey continues to reveal that military families are providing eldercare at a significantly higher rate than their civilian counterparts. The Index reveals that just 18% of general population families currently care for a parent or other elderly family member. Civilian families report average monthly costs of $950. Thirty-six percent of general population families say these monthly costs are more than they expected, and 22% say these expenses represent a severe financial concern for their household.

About First Command

First Command Financial Services and its subsidiaries, including First Command Brokerage Services and First Command Bank, coach our Nation’s military families in their pursuit of financial security. Since 1958, First Command Financial Advisors have been shaping positive financial behaviors through face-to-face coaching with hundreds of thousands of client families.