First Command Reports: Military families lead middle class in retirement readiness

FORT WORTH, Texas – Career military families are feeling more prepared for retirement than their civilian counterparts, according to the latest findings of the First Command Financial Behaviors Index®.

Mid-year results reveal that 72% of middle-class military families (commissioned officers and NCOs in pay grades E-5 and above with household incomes of at least $50,000) report feeling extremely or very confident in their ability to retire comfortably. That’s more than double the 33% of the general population with similar household incomes.

Military families who work with a financial advisor are feeling particularly upbeat. Their confidence level is 75%. That compares to 55% for those without an advisor. General population results are 50% and 18%, respectively.

These elevated retirement confidence levels are accompanied by greater savings rates. Military families who contribute to retirement and long-term savings accounts report average monthly savings of $1,590. That almost double the $845 reported by general population respondents.

Military families with a financial coach also feel better about the nation’s finances. The survey reveals that roughly one third (34%) are concerned about the state of the economy. That compares to:

• 59% of general population respondents without an advisor,
• 51% of general population respondents with an advisor, and
• 49% of military families without an advisor.

“Our research continues to reveal that service members and their families who work with a financial coach outpace their do-it-yourself colleagues and the general population in retirement readiness and feelings of financial confidence,” said First Command CEO/President Mark Steffe. “Partnering with a knowledgeable financial advisor helps reinforce the value of positive behaviors like spending less and saving more for long-term needs and goals. And it aligns with increased feelings of stability and optimism in their financial future.”

Looking ahead, military families are more likely than their civilian counterparts to say they intend to increase their contributions to savings and investments in the months ahead. More than half (57%) of military members plan to bump up their contributions. That compares to less than a third (30%) of general population respondents.

The overall Index score for military families is 178, statistically unchanged from the previous quarter. The score for civilian families is 113, down four points. The Index is set to a benchmark of 100, which was assigned when the Index was launched in 2008.

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.