The First Command Financial Behaviors Index® reveals that military
families are out-saving civilian households
FORT WORTH, Texas–(BUSINESS WIRE)–Career military families are leading the middle class in feeling
confident about their retirement prospects, according to the latest
findings of the First Command Financial Behaviors Index®.
Third quarter 2018 results reveal that 64 percent 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
compares to just 36 percent of the general population.
The heightened retirement confidence expressed by military respondents
aligns with positive savings behaviors. Military families who contribute
to retirement and long-term savings accounts report average monthly
savings of $1,116. That’s significantly more than the monthly average of
$830 reported by the general population.
“Again this quarter we see that military families are outpacing the rest
of the middle class in retirement savings and feelings of financial
confidence,” said Scott Spiker, chairman/CEO of First Command Financial
Services, Inc. “They save more and feel better. The act of saving serves
to increase net worth as well as optimism in the future.”
Military families are feeling more optimistic in their near-term
finances, too. Sixty-six 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 41 percent of the general
population. And they are saving more than the general population for
short-term goals ($486 per month versus $368).
Military families also lead the general population in amassing financial
assets. The Index reveals that average holdings in retirement, long-term
and short-term savings total $326,049 for military families versus
$315,097 for the general population.
Watch for the savings trend to continue in the months ahead. Military
families are more likely than their civilian counterparts to say they
intend to increase their monthly contributions to savings and
investments. The sub-Index for financial intentions increased three
points to 157 in military families and dropped one point to 100 in the
general population. Those results contributed to the overall Index
scores of 155 for military families and 112 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
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
First Command Financial Services, Inc., is the parent of First
Command Financial Planning, Inc. (Member SIPC,
First Command Advisory Services, Inc., 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, Inc.,
an investment adviser. Insurance products and services are offered
by First Command Insurance Services, Inc., in all states except Montana,
where as required by law, insurance products and services are offered by
First Command Financial Services, Inc. (a separate Montana domestic
corporation). Banking products and services are offered by First Command
Bank. In certain states, as required by law, First Command Insurance
Services, Inc. does business as a separate domestic corporation.
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.