FORT WORTH, Texas--(BUSINESS WIRE)--

Despite recent government assurances that the proposed overhaul of the military retirement system wont affect current servicemembers, men and women in uniform continue to worry about their future benefits.

Recent survey findings from the First Command Financial Behaviors Index reveal that the majority of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000)are not persuaded by statements from DoD leaders and federal lawmakers that they are committed to keeping current service members under the traditional retirement plan and only change it for new personnel. When asked how discussions about grandfathering current service members has affected their feelings, 54 percent of survey respondents said they feel no change. Just 31 percent said they feel less nervous, and 15 percent said they feel more nervous.

The Index reveals that 73 percent of survey respondents feel nervous about potential changes to the traditional military retirement system, which would phase out the 20-year cliff vesting system that has defined military careers for generations. Thats about the same level of concern reported in the July Index survey.

Many middle-class military families say they will respond to the proposed changes by saving more and cutting debt. The Index reveals that 42 percent will increase the amount they put into savings. Also, 42 percent say they will work to decrease their debt levels.

As the federal government pursues defense downsizing and military budget cuts, military families will work to change their own money behaviors for the better, said Scott Spiker, CEO of First Command Financial Services, Inc. We expect saving more and paying down debt will be among the key fiscal strategies pursued by active-duty households during this period of transition and uncertainty.

About the First Command Financial Behaviors Index

Compiled by Sentient Decision Science, Inc., the First Command Financial Behaviors Index assesses trends among the American publics 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/research

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.

View post:
Government Assurances Fail to Ease Retirement Worries in Military Families, First Command Reports