The changing terrain: The New Military Retirement
Military families rank retirement pay as their second-most-important military benefit, preceded only by basic pay. Because of the importance of retirement pay to career service members, and the significant changes that are coming with the new blended military retirement system, First Command Financial Services, Inc. has been asking military families related questions in its monthly Financial Behaviors Index® survey.
In July, 46 percent of these families said the proposed changes to military retirement would have no impact on their commitment to serving to full retirement. Thirty-one percent said they are more likely to do so. However, three-quarters would prefer to be grandfathered into the current system, instead of opting in to the new system.
Also, 46 percent of the families have already viewed the online training provided by Joint Knowledge Online and Military OneSource, which explains the new retirement system options. Fifty-six percent are aware that those who are eligible to opt-in will be able to access DoD educational classes beginning in January. A large majority, 87 percent, indicated they are likely to consult a financial advisor before making their decision, with 53 percent being extremely or very likely to do so. Two-thirds of that 53 percent who already work with a financial advisor will seek their advisor’s help before making the decision.
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