Military personnel are more likely to consult a financial advisor after taking online Pentagon courses on their new retirement system, says the First Command Financial Behaviors Index.
The index shows that 76 percent of middle-class military families that have taken the course say they are extremely or very likely to consult a financial advisor for help, compared to 50 percent of respondents who have not yet taken the required course, according to a recent survey.
“These survey findings underscore the critical role that professional financial coaching can play in helping service member families navigate one of the most significant changes to military pay and benefits in 70 years,” said Scott Spiker, chairman and CEO of First Command Financial Services.
The new pension system features a 20 percent reduction in guaranteed retirement pay generated by the old traditional pension in exchange for a variety of new benefits that include automatic and matching Thrift Savings Plan contributions, a mid-career continuation pay bonus and options to receive a portion of the reduced pension as a lump sum
Many military members can choose the new pension system or remain in the traditional one. Starting next year, new enlistees will be put in the new system. Earlier survey results show 41 percent of respondents want to opt into the new system. That’s up from just 8 percent in August.