• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

US Military

  • Branches
    • Army
    • Navy
    • Air Force
    • Marine Corps
    • Coast Guard
    • National Guard
    • Air National Guard
    • Find A Recruiter
  • Find A Recruiter
  • Military Benefits
    • GI Bill
    • VA Loans
    • Military Scholarships
    • Military Friendly Colleges
    • Money
  • Jobs
    • Military Pay Chart
    • Veteran Jobs
    • Civilian Jobs
  • VA Loan Rates
  • Military News
    • Top News
    • Benefits
    • Careers
    • Education
    • Featured Columnists
      • Larry Fowler
      • Scott Ostrow
      • Kim Lengling
      • Dr. Sasha Toperich
      • Rick Stewart
  • USM Shop
  • GI Bill
  • VA Loans
  • Military Scholarships
  • Top Military-Friendly Colleges and Universities in America

First Command Reports: Career Servicemembers Divided Over Retirement Reform

April 16, 2015 By admin

APRIL 16, 2015, FORT WORTH, Texas – America?s career servicemembers are responding positively to a new recommendation for overhauling military retirement. Just don?t ask them to give up their current benefit.

The latest results of the First Command Financial Behaviors Index? reveal that 69 percent of middle-class military families (commissioned officers and senior NCOs in pay grades E-6 and above with household incomes of at least $50,000) are in favor of the Military Compensation and Retirement Modernization Commission?s proposal to restructure the traditional 20-year retirement system as a blended program that includes a reduced pension in exchange for a lump sum bonus and a new 401(k)-type plan. Just 10 percent are unfavorable to the plan.

But this high level of support does not necessarily mean that servicemembers want the new proposal for themselves. Sixty-one percent of respondents who say they are likely to serve to full retirement prefer to be grandfathered in under the current system.

?These survey results suggest that career servicemembers are divided over retirement reform,? said Scott Spiker, CEO of First Command Financial Services, Inc. ?They are relatively open minded about retirement reform in general, but they are understandably wary about giving up a significant financial benefit that has been a key part of our nation?s lifetime commitment to generations of men and women in uniform.?

In related findings, servicemembers also expressed support for the Commission?s recommendations for:

* Programs to improve financial literacy (61 percent),


* A new Survivor Benefit plan option (57 percent) and


* A new military healthcare system (51 percent).

The Commission?s recommendations are of high interest to career military families. March survey results reveals that two thirds (67 percent) of middle-class military families are aware of the Commission?s proposed changes to military pay and benefits. Out of that group, 53 percent are in favor of the proposed changes. In contrast, just 11 percent of civilian families are aware of the proposed changes. Twenty-five percent are in favor of them.

?Looking ahead, we expect to see an increasing awareness of the Commission?s recommendations in general and a more detailed and informed understanding of what these proposals could mean for America?s career military and their long-term financial security,? Spiker said. ?Caution is well justified, particularly in regards to retirement reform. The Commission?s recommendation is a vague notion right now. It transfers risk from the government to the servicemember, but that risk is impossible to fully quantify because of a lack of details. It is premature to say if the financial value of the new proposal is higher or lower than the existing retirement benefit system. Until the Commission defines more of the details and assumptions that support their recommendation, servicemembers will find it very hard to make a meaningful judgment for their own financial future.?

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. 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.

Filed Under: Careers, daniel articles, Top News

[related_posts_by_tax format="thumbnails" limit_posts="100" image_size="sidebar-thumbnail" public_only="true" posts_per_page="6"]

Primary Sidebar

USMilitary.com Career Guide

Sign up to receive USMilitary.com email updates and to hear what's going on with all military branches!

Featured Columnists

Larry Fowler

Larry Fowler is the publisher of USMilitary.com Network one of America's premier privately owned

Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Scott Ostrow

Lt Col (Dr.) Scott A. Ostrow retired from the Air Force in September 2005 and has been teaching

Must Read: The Truth About The ASVAB Test Prep From The Man Who Wrote The Book

Kim Lengling

Kim Lengling is a Air Force Veteran whose passion is to help support veterans and their

The Moving Wall: Women Who Paid The Ultimate Price For Their Country

Dr. Sasha Toperich

Dr. Sasha Toperich is the Senior Executive Vice President at Transatlantic Leadership

Sarraj’s Dangerous Dance With Power

Rick Stewart

Rick Stewart is a former United States Air Force Survival, Evasion, Resistance, and Escape (SERE)

Announcing American Patriots Unsung Magazine

Nathan B. Nelson

Capt (ret) Nathan B. Nelson is the Director of Military Affairs for the 1st Congressional district

Three Critical Considerations for Every Veteran Prior to Leaving Active Duty

Laquan Daniels

Laquan Daniel is a military recruiting expert with over 17 years of specialized experience in the

Important News For Military Transitioning Veterans

Veteran Buzz

Hire Military Veterans

Which Companies Are Most Likely to Hire Military Veterans?

July 30, 2018 By Ben Ehinger

High-Paying Jobs for Military Veterans

5 High-Paying Jobs for Military Veterans

July 2, 2018 By Ben Ehinger

High Paying Jobs Not Requiring a Degree

June 28, 2018 By Ben Ehinger

Footer

  • Advertise With Us
  • Privacy Policy
  • Write For US
  • Link to Us

Recent

  • The Unraveled Pandemic Of Navy SEAL Posers
  • Apache Attack Helicopter Pilot: To Maintain a Watchful Eye, “Above the Best”
  • A Few Benefits You May Not be Aware of As a Military Child
  • Experts Predict Artificial Intelligence Will Transform Warfare
  • Autobiography Compares Living Faithfully With Navy SEAL Training (BUD/S).

Search

© Copyright 2021 USMillitary
Web Design by Goebel Media Group


THIS IS A PRIVATE WEBSITE THAT IS NOT AFFILIATED WITH THE U.S. GOVERNMENT, U.S. ARMED FORCES, OR DEPARTMENT OF VETERANS AFFAIRS. U.S. GOVERNMENT AGENCIES HAVE NOT REVIEWED THIS INFORMATION. THIS SITE IS NOT CONNECTED WITH ANY GOVERNMENT AGENCY.

​Tips
Discounts
News

​

​

Join the USMilitary.com Newsletter Today!

By subscribing you agree to our terms & conditions

x