Military Families Maintain Stronger Financial Confidence Than Civilians

FORT WORTH, Texas — Military families continue to report stronger financial confidence than the general population, even as recent economic uncertainty has slightly softened financial attitudes, according to new research from First Command Financial Services’ Financial Behaviors Index®.

Recent quarterly results show that active-duty military households in pay grades E-5 and above remain significantly more optimistic about their financial future and retirement readiness than civilian households. At the same time, both groups reported modest declines in financial confidence during the fourth quarter of 2025.

Despite this slight dip, military families continue to demonstrate stronger financial attitudes across several key indicators of financial well-being.

Key Findings: Military vs. General Population Financial Confidence

According to the Q4 2025 Financial Behaviors Index:

• 72% of military families expect their financial situation to improve in the next year, compared with 43% of the general population.
• 69% of military households say they are confident in their ability to retire comfortably, versus 40% of civilians.
• 49% of military families report feeling financially secure month to month, compared to 30% of the general population.
• 29% of military respondents say they are not financially stretched, compared to 32% of civilians, indicating that both groups continue to feel pressure from economic conditions.

These results suggest that while confidence has softened slightly in recent months, military households still report stronger financial outlooks than their civilian counterparts.

Financial Coaching Linked to Stronger Savings and Confidence

The survey also highlights significant differences between households that work with financial advisors and those that do not.

Among military households:

• Families working with a financial advisor contribute an average of $1,985 per month to savings, compared to $1,565 for those without advisors.
• Average long-term savings and retirement balances reach $263,298 for advised households, compared to $148,806 for those without advisors.
• Thrift Savings Plan participation is significantly higher among those working with an advisor (57% versus 34%).

Military respondents who work with financial advisors also report significantly stronger financial attitudes, including higher confidence in their financial future and retirement readiness.

Financial Attitudes Dip, But Behaviors Remain Stable or Improved

Among the general population, the Financial Behaviors Index remained stable at a score of 126 in the fourth quarter, suggesting that many households are continuing positive financial behaviors despite declining financial sentiment.

By comparison, the military Financial Behaviors Index declined modestly, dropping three points to 171. The change reflects a slight softening in financial attitudes among service members even as overall confidence remains stronger than the general population.

These scores are based on a benchmark of 100, the baseline set when the Index was launched in 2008.

The military Index decline was driven primarily by a dip in financial attitudes, including confidence about future financial improvement and retirement readiness, while behaviors such as savings contributions remained relatively stable.

Among civilians, the Index stability reflects a different pattern: attitudes weakened, but improvements in financial behaviors — including higher contributions to retirement accounts and paying off long-term and short-term debt— helped offset the decline.

However, attitudes weakened somewhat, with fewer consumers reporting that they feel financially secure or optimistic about their financial future.

Retirement Concerns Continue to Center on Health and Debt

Across both military and civilian households, retirement concerns remain focused on health risks and financial security.

Among military respondents, the top retirement concerns include:

• Being in debt when retiring — 40%
• Suffering an illness or disability — 40%
• Becoming a burden on children — 34%
• Not being able to afford their lifestyle — 34%

Among the general population, the leading concerns include:

• Suffering an illness or disability — 42%
• Not being able to afford healthcare costs — 40%
• Not being able to afford my lifestyle – 37%
• Being in debt when I retire – 37%

These results indicate that long-term health risks and retirement affordability remain major concerns for American households.

Professional Perspective

“Military families have historically demonstrated strong financial discipline and long-term planning habits,” said First Command President/CEO Mark Steffe. “Even when confidence dips during periods of economic uncertainty, service members tend to maintain a forward-looking approach to saving and retirement preparation. Our research continues to show that households working with financial professionals are especially well positioned to stay focused on long-term financial goals.”

Frequently Asked Questions About the Financial Behaviors Index®

What is the First Command Financial Behaviors Index®?

The First Command Financial Behaviors Index® tracks financial behaviors, attitudes and intentions among middle-income American households through a monthly survey conducted by Sentient Decision Science.

Why are military families often more confident financially than civilians?

Military families typically benefit from structured compensation, housing allowances, retirement programs and other benefits that can support long-term financial planning. In addition, many service members work with financial professionals who can help them maintain disciplined savings and investment strategies.

What financial behaviors does the Index measure?

The Financial Behaviors Index evaluates three key dimensions of personal finance:

• Behaviors — saving, investing and debt payments
• Intentions — planned changes to savings or borrowing
• Attitudes — financial confidence, retirement outlook and financial security

Why does financial coaching matter?

Survey results consistently show that households working with financial advisors demonstrate stronger financial behaviors, including higher savings contributions, greater participation in retirement plans and greater confidence about their financial future.

Where does the data come from?

The Financial Behaviors Index® is compiled by Sentient Decision Science, an independent behavioral research firm. The survey is based on monthly interviews with U.S. consumers ages 18–70 with household incomes of at least $50,000.

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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 knowledgeable advice and coaching of the financial behaviors conducive to success, First Command Financial Advisors have built trustworthy, lasting relationships with hundreds of thousands of client families since 1958.