The changing terrain: Sequestration
Nearly three-quarters (72 percent) of military families surveyed in the June First Command Financial Behaviors Index® are anxious about cuts to defense spending, while more than three-quarters (78 percent) anticipate being financially affected by the cuts. Their top budget-related concerns are a reduction in annual pay increases, selected by 44 percent of survey respondents, and a reduction in retirement benefits, selected by 40 percent. When asked, “How concerned are you about your job security in the coming months?” exactly half of military families expressed concern, nearly twice that of general population survey respondents.
Still, more than half of military families (54 percent) are confident that Congress will void sequestration and avoid automatic budget cuts in 2018. Forty percent of them think Congress should lift the caps on military and domestic spending, while 32 percent believe only the military caps should be lifted.
These families are dealing with their concerns by implementing financial preparedness measures, with 90 percent reporting taking some type of action. The top actions they are taking are to cut back on everyday spending, selected by 51 percent of respondents, and increase savings, selected by 44 percent.
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