First Command Financial Behaviors Index

Military Families Reassessing Retirement Plans In Face of DoD Overhaul - July 2011

Awareness of changes to traditional military retirement plan

No 36%

Yes 64%

FBIJuly0101a: Are you aware of the possible changes to the traditional military retirement plan?

Does your perception fit the description of changes to traditional military retirement?

I did not know about these changes until I just read this description 34% Yes, I knew about this discussion 48% No, my perception of these changes was different 18%

FBIJuly0101b: Please read the description of the possible changes to the traditional military retirement plan. There is currently a discussion about changing the traditional military retirement plan (an officer can retire in his/her 40s and collect payments (adjusted as the cost of living changes) until death) in the following ways: Converting to a civilianized 401(k)-style system under which full retired pay wouldnt be paid until age 5760 Authorizing the services to make variable annual retirement contributions depending on changing retention and skill requirements Vesting retirement benefits after 10 years of service Does this description accurately fit your perception of the possible changes to the traditional military retirement plan?

Feelings about possible changes to traditional military retirement plan

This will have no impact on me - I'm already retired 4%

This will have no impact on me - I am not planning to use the traditional miltiary retirement plan 8%

Extremely nervous 19%

Not too nervous 21% Very nervous 15%

Somewhat nervous 33%

FBIJuly0102: How do you feel about these possible changes to the traditional military retirement plan? There is currently a discussion about changing the traditional military retirement plan (an officer can retire in his/her 40s and collect payments (adjusted as the cost of living changes) until death) in the following ways: Converting to a civilianized 401(k)-style system under which full retired pay wouldnt be paid until age 5760 Authorizing the services to make variable annual retirement contributions depending on changing retention and skill requirements Vesting retirement benefits after 10 years of service

Changes to behavior based on possible changes to traditional military retirement plan

We are going to get more information on this

38

We are not going to do anything until the changes are finalized

29

We already have additional retirement plans set up

29

We are going to start looking into this and different retirement options

20

Other (specify)

This will have no impact on me Im already retired This will have no impact on me I am not planning to use the traditional military retirement plan 0%

20%

40%

60%

80%

100%

FBIJuly0103: Are you going to change your behavior at all given these possible changes to the traditional military retirement plan? Please select all that apply.

Effects of the possible changes to traditional military retirement on savings behaviors

We will decrease the amount we put into savings a lot 1%

We will decrease the amount we put into savings a little 1%

We will increase the amount we put into savings a lot 11%

We will not change the amount we put into savings 55%

We will increase the amount we put into savings a little 32%

FBIJuly0104: How will these possible changes to the traditional military retirement plan affect your current savings behaviors?

Effects of the possible changes to traditional military retirement on debt behaviors

We will work to increase our debt level a little 2% We will work to increase our debt level a lot 1%

We will work to decrease our debt level a lot 24%

We will not change our debt levels 51% We will work to decrease our debt level a little 22%

FBIJuly0105: How will these possible changes to the traditional military retirement plan affect your current debt behaviors?