Financial anxiety among U.S. career military personnel is increasing because of federal budget cuts, according to First Command, a financial services organization that focuses on the military.
The First Command Financial Behaviors Index reveals that 46 percent of middle-class military families are concerned about their job security in the coming months, the highest level of concern since the question was added to the monthly survey in the spring of 2013.
“Almost seven-in-ten survey respondents indicate anxiety regarding sequestration and almost half expect to be extremely or very affected by anticipated cuts to defense spending,” says Scott Spiker, CEO of First Command Financial Services Inc.
In May, 32 percent of survey respondents said they are less likely to be promoted, an increase of 17 points from the previous month. Twenty-four percent said they are less likely to serve their full time, an increase of nine percentage points from the previous month.
Anxiety about such things as annual pay increases, reductions in housing and food allowances and reduction in retirement benefits is also increasing, First Command says.