First Command Reports: Majority of Career Servicemembers Believe Sequestration Will End

First Command Financial Behaviors Index® shows military families
remain optimistic, while still taking steps to plan for defense budget
cuts

FORT WORTH, Texas–(BUSINESS WIRE)–With just weeks left until the beginning of Fiscal Year 2016, 50 percent
of career military households are still holding on to the belief that
Congress will void sequestration before the scheduled return to the full
budget cuts in October.

August represents the third consecutive month that percentage has
totaled at or above the midpoint in the First Command Financial
Behaviors Index® survey. Forty-five percent of middle-class military
families (commissioned officers and senior NCOs in pay grades E-6 and
above with household incomes of at least $50,000) would like to see
Congress repeal the caps on all spending, while 28 percent believe only
the defense spending caps should be lifted. Forty-four percent of those
surveyed approve of the way Congress is handling its job, much higher
than the 7 percent of civilians who approve.

This optimism does not offset military families’ continued anxiety about
defense spending cuts and sequestration, with 72 percent feeling at
least somewhat anxious. Seventy percent anticipate being financially
affected, with 36 percent expecting to be very or extremely affected.
Military families’ top two concerns related to budget cuts are
reductions in retirement benefits (34 percent) and reductions in
personal expense benefits (30 percent).

Job security concerns also remain high, with 54 percent at least
somewhat concerned about their job security over the coming months.

Military families are dealing with these concerns through financial
preparedness, with 82 percent taking some type of action. Their top
actions are to increase savings (41 percent) and cut back on everyday
spending (40 percent).

“Military families continue to hold their heads high and hope for the
best, while at the same time taking steps to prepare for smaller defense
budgets in FY16 and beyond,” said Scott Spiker, CEO of First Command
Financial Services, Inc. “This mindset is not surprising, as it is
indicative of the way career servicemembers and their families plan
their mobile lives.”

About the First Command Financial Behaviors Index®

Compiled by Sentient Decision Science, Inc., the First Command Financial
Behaviors Index® assesses trends among the American public’s
financial behaviors, attitudes and intentions through a monthly survey
of approximately 530 U.S. consumers aged 25 to 70 with annual household
incomes of at least $50,000. Results are reported quarterly. The margin
of error is +/- 4.3 percent with a 95 percent level of confidence. www.firstcommand.com/research

About Sentient Decision Science, Inc.

Sentient Decision Science was commissioned by First Command to compile
the Financial Behaviors Index®. SDS is a behavioral science and
consumer psychology consulting firm with special vertical expertise
within the financial services industry. SDS specializes in advanced
research methods and statistical analysis of behavioral and attitudinal
data.

About First Command

First Command Financial Services and its subsidiaries, including First
Command Bank and First Command Financial Planning, assist American
families in their efforts to build wealth, reduce debt and pursue their
lifetime financial goals and dreams—focusing on consumer behavior as the
first and most powerful determinant of results. Through knowledgeable
advice and coaching of the financial behaviors conducive to success,
First Command Financial Advisors have built trustworthy, lasting
relationships with hundreds of thousands of client families since 1958.

First Command Financial Services, Inc., is the parent of First
Command Financial Planning, Inc. (Member
SIPC,
FINRA),
First Command Insurance Services, Inc. and First Command Bank. Financial
planning services and investment products, including securities, are
offered by First Command Financial Planning, Inc.
Insurance products
and services are offered by First Command Insurance Services, Inc., in
all states except Montana, where as required by law, insurance products
and services are offered by First Command Financial Services, Inc. (a
separate Montana domestic corporation). Banking products and services
are offered by First Command Bank. In certain states, as required by
law, First Command Insurance Services, Inc. does business as a separate
domestic corporation. Securities products are not FDIC insured, have no
bank guarantee and may lose value. A financial plan, by itself, cannot
assure that retirement or other financial goals will be met. First
Command Educational Foundation is a 501(c)(3) public charity. It is not
affiliated with First Command Financial Services, Inc., or any of its
affiliated entities.

Contacts

First Command Financial Services, Inc.
Mark Leach, 817-569-2419
Media
Relations
msleach@firstcommand.com
www.firstcommand.com

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