The changing terrain: Benefits
This week the Army announced plans to halt funding cutbacks on many morale, welfare and recreation (MWR) programs. The Army had planned to make cuts at the beginning of the fiscal year (Saturday, Oct. 1) but has temporarily suspended that plan.
This is good news for military families, especially the seven-in-10 who are feeling anxious about cuts to defense spending, according to results from the latest First Command Financial Behaviors Index® survey. This same number of families indicated they anticipate being financially impacted by cuts to defense spending, with one third expecting to be extremely/very affected. Other ways these families are feeling vulnerable to DoD budget cuts are:
- Reduction in annual pay increases: 51 percent.
- Increased responsibility for healthcare costs: 47 percent.
- Reduction in Basic Allowance for Housing: 43 percent.
- Reduction in personal expense benefits (housing, clothing, food): 42 percent.
- Reduction in retirement benefits: 40 percent.
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