Worries over cuts to America’s defense budget have prompted military personnel to save more for their retirement, new research shows.
This finding is unveiled in the First Command Financial Behaviors Index, a survey of middle-class military families, including senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000.
The report shows that short-term savings average $1,080 per month, a rise of 18 percent from the end of 2013. Retirement and long-term savings grew 11 percent to a monthly average of $2,374.
Military families who work with a financial advisor contribute twice as many dollars into saving vehicles as those who don’t work with an advisor, the report adds.
Their average monthly rates total $1,723 for short-term savings and $3,951 for retirement and long-term savings. In contrast, the savings rates for those without an advisor average $709 and $1,467, respectively.