FORT WORTH, Texas – Federal employees have pulled ahead of the general population in personal savings, bumping up their monthly contributions at a time when other middle-class Americans have stumbled, according to the First Command Financial Behaviors Index™.
Results of the Index’s semi-annual federal employee survey indicate that these families dramatically improved their savings situation during the six-month period ending in September. Federal employees saw their average monthly contributions to short-term, long-term and retirement savings accounts rise 56 percent to $2,289. At the same time, other middle-class Americans saw their monthly total fall 11 percent to $1,923.
“Federal employees are setting the pace for positive savings behaviors,” said Scott Spiker, CEO of First Command. “During a period when savings activity slowed among many middle-class consumers, the families of federal employees have significantly increased the dollars they are putting away for the future.”
The most striking contrast between federal employees and average Americans can be seen in their retirement accounts. Average monthly contributions by federal employees surged 85 percent to $1,388. Average retirement savings for the general population plunged 25 percent to $765.
Federal employees also have increased the monthly dollars they put away for short- and long-term needs. Their average short-term savings totaled $705, up 11 percent from $633. The general population experienced a drop in short-term savings -- $860, down 3 percent from $885. Average long-term savings for families of federal employees totaled $196, up 145 percent from $80. The general population also experienced an increase in long-term savings, though considerably smaller in dollars and percentage change. Their average was $298, up 11 percent from $268.
This upward movement in savings behaviors by federal employees was mirrored in the military population, which also pulled ahead of the general population during the third quarter. Their average monthly contributions to short-term, long-term and retirement savings accounts rose 23 percent to $2,385.
“Federal employees and military professionals share many of the same attributes and qualities that we associate with diligent savings behaviors,” Spiker said. “And both groups enjoy the positive feelings that come with these behaviors. They feel less stressed and better able to withstand the ups and downs of the economy than the rank and file of American consumers.”
Interestingly, federal employees with a financial plan developed by a financial advisor feel better about their savings than those without a plan. Nineteen percent of those with a financial plan feel extremely or very comfortable about their savings versus 9 percent of those without a plan.
“These results support our ongoing findings that consumers can enjoy an emotional lift by consistently saving and investing a percentage of their income,” Spiker said. “You don’t have to be a federal employee or member of the military to experience this lift, either. Those who work with a financial professional and have a financial plan are primed to experience a sense of security and increased feelings of financial hope and optimism, especially in times of economic uncertainty.”
About the First Command Financial Behaviors Index™
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index™ assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 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 +/- 3.1 percent with a 95 percent level of confidence. (Note: Federal employee data is collected twice a year in September and March through a survey of approximately 410 members of federal employee households. The margin of error is +/- 4.8 percent.) www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design 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 personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
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First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals will be met.
Results of the Index’s semi-annual federal employee survey indicate that these families dramatically improved their savings situation during the six-month period ending in September. Federal employees saw their average monthly contributions to short-term, long-term and retirement savings accounts rise 56 percent to $2,289. At the same time, other middle-class Americans saw their monthly total fall 11 percent to $1,923.
“Federal employees are setting the pace for positive savings behaviors,” said Scott Spiker, CEO of First Command. “During a period when savings activity slowed among many middle-class consumers, the families of federal employees have significantly increased the dollars they are putting away for the future.”
The most striking contrast between federal employees and average Americans can be seen in their retirement accounts. Average monthly contributions by federal employees surged 85 percent to $1,388. Average retirement savings for the general population plunged 25 percent to $765.
Federal employees also have increased the monthly dollars they put away for short- and long-term needs. Their average short-term savings totaled $705, up 11 percent from $633. The general population experienced a drop in short-term savings -- $860, down 3 percent from $885. Average long-term savings for families of federal employees totaled $196, up 145 percent from $80. The general population also experienced an increase in long-term savings, though considerably smaller in dollars and percentage change. Their average was $298, up 11 percent from $268.
This upward movement in savings behaviors by federal employees was mirrored in the military population, which also pulled ahead of the general population during the third quarter. Their average monthly contributions to short-term, long-term and retirement savings accounts rose 23 percent to $2,385.
“Federal employees and military professionals share many of the same attributes and qualities that we associate with diligent savings behaviors,” Spiker said. “And both groups enjoy the positive feelings that come with these behaviors. They feel less stressed and better able to withstand the ups and downs of the economy than the rank and file of American consumers.”
Interestingly, federal employees with a financial plan developed by a financial advisor feel better about their savings than those without a plan. Nineteen percent of those with a financial plan feel extremely or very comfortable about their savings versus 9 percent of those without a plan.
“These results support our ongoing findings that consumers can enjoy an emotional lift by consistently saving and investing a percentage of their income,” Spiker said. “You don’t have to be a federal employee or member of the military to experience this lift, either. Those who work with a financial professional and have a financial plan are primed to experience a sense of security and increased feelings of financial hope and optimism, especially in times of economic uncertainty.”
About the First Command Financial Behaviors Index™
Compiled by Sentient Decision Science, LLC, the First Command Financial Behaviors Index™ assesses trends among the American public’s financial behaviors, attitudes and intentions through a monthly survey of approximately 1,000 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 +/- 3.1 percent with a 95 percent level of confidence. (Note: Federal employee data is collected twice a year in September and March through a survey of approximately 410 members of federal employee households. The margin of error is +/- 4.8 percent.) www.firstcommand.com/research
About Sentient Decision Science, LLC
Sentient Decision Science was commissioned by First Command to compile the Financial Behaviors Index™. Sentient is a full-service market research firm with special vertical expertise within the financial services industry. Sentient specializes in advanced research design 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 personalized financial plans that emphasize accumulating wealth while reducing risk, First Command Financial Advisors have established lasting relationships with hundreds of thousands of client families since 1958.
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First Command Financial Services, Inc. is the parent company of First Command Financial Planning, Inc. (Member SIPC, FINRA) and First Command Bank (Member FDIC). Financial planning services and investment products, including securities products are offered by First Command Financial Planning, Inc. Insurance products and services are offered by First Command Financial Services, Inc. Banking products and services are offered by First Command Bank. Securities products are not FDIC insured, have no bank guarantee and may lose value. In certain states, First Command Financial Services, Inc. is a separately registered domestic corporation and does business in California as “First Command Insurance Services.” A financial plan, by itself, cannot assure that retirement or other financial goals will be met.