First Command Reports: Retirement Savings and Confidence Strong in Military Families
November 22 2019 - 12:29PM
Business Wire
Career military families are out-saving other Americans and
growing increasingly confident in their preparations for
retirement, according to the latest findings of the First Command
Financial Behaviors Index®.
Second quarter results reveal that middle-class military
families (commissioned officers and NCOs in pay grades E-5 and
above with household incomes of at least $50,000) who contribute to
retirement and long-term savings accounts reported an average
monthly savings of $1,229. That’s significantly more than the
monthly average of $828 reported by the general population.
Military families are also outpacing their civilian counterparts
in feelings of financial confidence. Sixty-nine percent of military
respondents report feeling extremely or very confident in their
ability to retire comfortably. In contrast, retirement confidence
in the general population is 41 percent.
Service members and their families are also saving more than the
general population for short-term goals ($501 per month versus
$358). And they are feeling more confident in their near-term
finances. Seventy-five percent of service member families say they
feel extremely or very confident their financial situation will
improve in the next year. That compares to just 44 percent of the
general population.
“The act of saving helps people feel more financially
confident,” said Scott Spiker, chairman and chief executive officer
of First Command Financial Services, Inc. “We see that positive
connection between savings and attitudes reflected in military
families. They are saving and investing more than their civilian
counterparts – and those behaviors align with feeling more
confident in their current finances and retirement
preparations.”
Financial confidence levels are particularly high among military
families who work with a financial coach. The Index reveals that
families with a financial advisor are more likely than
do-it-yourselfers to feel extremely or very confident that their
financial situation will improve in the next year (79 percent
versus 53 percent) and in their ability to retire comfortably (74
percent versus 34 percent).
Notably, military families with a financial advisor are more
likely to have long-term and retirement savings and contribute more
each month than those without financial advisors. They report
average savings and retirement holdings of $231,000, or about
$116,000 more than those without an advisor.
“Financial advisors are committed to coaching families to build
their net worth so they can feel more financially confident and
secure,” said Mark Steffe, president of First Command Financial
Services, Inc. “They help families assess their unique situations
and build comprehensive financial plans that reflect their military
pay and benefits. They serve as knowledgeable partners who help
families set goals that line up with their hopes and dreams and
effectively pursue financial security.”
Look for military families to boost their finances in the months
ahead. They are more likely than their civilian counterparts to say
they intend to increase their monthly contributions to savings and
investments. These results helped drive the second quarter
Financial Behaviors Index score to 161 for military families versus
117 for the general population.
The Index is set to a benchmark of 100, which was assigned when
the Index was launched in 2008.
About the First Command Financial Behaviors Index®
Compiled by Sentient Decision Science, Inc., the First Command
Financial Behaviors Index® assesses trends among the American
public’s financial behaviors, attitudes and intentions through a
monthly survey of approximately 530 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 +/- 4.3 percent with a
95 percent level of confidence.
http://www.firstcommand.com/fbi/
About Sentient Decision Science, Inc.
Sentient Decision Science was commissioned by First Command to
compile the Financial Behaviors Index®. SDS is a behavioral science
and consumer psychology consulting firm with special vertical
expertise within the financial services industry. SDS specializes
in advanced research methods and statistical analysis of behavioral
and attitudinal data.
About First Command
First Command Financial Services and its subsidiaries, including
First Command Financial Planning 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.
First Command Financial Services, Inc., is the parent of
First Command Financial Planning, Inc. (Member SIPC, FINRA),
First Command Advisory Services, First Command Insurance
Services, Inc. and First Command Bank. Financial planning services
and investment products, including securities, are offered by First
Command Financial Planning, Inc., a broker-dealer. Financial
planning and investment advisory services are offered by First
Command Advisory Services, an investment adviser. Insurance
products and services are offered by First Command Insurance
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. A financial plan, by itself,
cannot assure that retirement or other financial goals will be met.
First Command Financial Services, Inc. and its related entities are
not affiliated with, authorized to sell or represent on behalf of
or otherwise endorsed by any federal employee benefits programs
referenced, by the U.S. government, or the U.S. armed forces.
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Mark Leach Media Relations 817-569-2419
msleach@firstcommand.com