The changing terrain: Budget cuts stress military families
Military families continue to be anxious about cuts to defense spending, with 69 percent indicating anxiety and 74 percent anticipating being financially affected by cuts.
According to results from the latest First Command Financial Behaviors Index® survey, the top concerns about budget cuts are:
- Reduction in annual pay increases: 38 percent
- Increased responsibility for healthcare costs: 38 percent
- Reduction in retirement benefits: 34 percent
- Reduction in personal expense benefits (housing, clothing, food): 32 percent
Some better news for these families is that fewer are expressing concerns over job security than in previous months’ surveys. In May, less than half (48 percent) indicated such concern. About that same number (46 percent) think that Congress will void sequestration, with more than 37 percent believing Congress should lift the caps on both defense and non-defense spending.
Still, these families are diligently dealing with their concerns through financial preparedness, with more than nine-in-10 taking action. Approximately half of survey respondents indicated they are cutting back on everyday spending and increasing savings.
For more survey details, visit www.firstcommand.com/fbi.
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