A significant percentage of military families feel confident they will be able to retire comfortably despite financial challenges related to the COVID-19 pandemic, according to First Command Financial Services.
But those military families who use financial advisors are significantly more confident about their retirement planning than military families that don’t have professional help, the Fort Worth, Texas, firm said Friday.
Seventy percent of middle-class military families (commissioned officers and senior non-commissioned officers in pay grades E-5 and above with household incomes of at least $50,000) felt extremely or very confident in their ability to retire comfortably, according to January-to-May survey results of the First Command Financial Behaviors Index, the company said. That was statistically unchanged from the same period of 2019, it noted.
However, military families with a financial coach reported contributing more to retirement and long-term savings accounts than their do-it-yourself counterparts — $1,459 each month versus $737, according to First Command.
Those families with advisors also felt better about their long-term financial futures, the firm said, noting 79% reported feeling extremely or very confident in their ability to retire comfortably. In stark contrast, only 39% of military families without an advisor reported experiencing similar confidence levels, the firm said.
Similarly, families with an advisor contributed more to short-term savings than those without an advisor — $697 per month versus $350, First Command said.
Meanwhile, 83% of those military families with advisors said they felt their financial situations would improve in the next year. That compared to only 51% of those who did not have advisors, according to the firm.