Military Families Finance: In general, those who enlist in the military are paid very little to protect our liberties. However, their meagre income hasn’t stopped them from making some significant financial achievements.
It turns out that, according to a recent Employee Benefit Research Institute report, military families typically have better financial outcomes than the general population.
To ascertain their financial situation, 2,521 Americans aged 25 and over were polled by the EBRI. 1,255 employees, 1,266 retirees, and an oversample of 829 respondents from households with military members were among the participants.
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These are some ways that military families differentiate themselves from the rest based on those findings.
They are more likely to own substantial assets
49% of military households have financial assets of at least $255,000. Compared to non-military households, where only 40% of respondents have reached that threshold, that is a much higher percentage.
They are less inclined to consider debt to be an issue
It’s no secret that debt is engulfing Americans. In the US, credit card debt currently exceeds $1 trillion.
However, according to 55% of military households, debt is not an issue. Compared to non-military households, which report the same, that is 9% higher.
It’s more likely that they have begun preparing for retirement
People in the military appear to be planning for retirement far better than those in non-military households. It is more probable that they have:
- Pondered their retirement plans (68% of military households versus 58% of non-military households).
- Determined the amount of money (50% vs. 41%) that they would probably need in retirement to pay for medical costs.
- Estimated their monthly retirement income requirements (63% vs. 54%)
- Accounted for emergency or large retirement expenses (56% vs. 47%) in their plans.
They are more likely to be optimistic about their chances of retiring.
At least some military households are feeling pretty good about their retirement as a result of all that preparation work.
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According to the EBRI survey, the two higher-earning military household groups are optimistic about their retirement prospects. This comprises 89% of households making $75,000 or more, and 71% of households making between $35,000 and $74,999.
These figures are higher by 11% and 8%, respectively, when compared to households that are not military.
It’s crucial to note, though, that military households making less than $35,000 have the same level of confidence about retirement as non-military households in that income range.
