Here’s What We Learned From the Latest DoD Financial Survey

By: Shane Ostrom

March 28, 2019

Here’s What We Learned From the Latest DoD Financial Survey — Catherine Lane / Getty Images

The latest DoD financial survey gave servicemembers an edge in financial literacy compared with their civilian counterparts, but it also showed that about 3 in 10 servicemembers are facing some kind of financial unease.

The survey is part of DoD's efforts to embed financial literacy in the service culture, rather than a separate program in family support centers. The mission is to expand literacy to the total force rather than focus on the junior enlisted population. A goal is to prevent financial problems and decrease the adverse personnel actions due to financial mismanagement.

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About 20 percent of the 120,000 distributed surveys were filled out. Among the findings:

Servicemembers scored 61 percent in financial literacy, compared with the 54 percent scored by the general public on the Consumer Financial Protection Bureau's National Financial Well-Being Survey.
Approximately 70 percent of servicemember survey-takers consider themselves financially “comfortable.” The other 30 percent have “some difficulty” or are “uncomfortable.”
Of servicemembers surveyed, 80 percent save regularly or save some each month. About 35 percent have no emergency savings, or less than a month's worth.
The top three servicemember financial goals are preparing for retirement, building emergency savings, and being debt-free.

The survey provides insight into the status of financial literacy among servicemembers. A recent law requires a robust DoD financial education program, and financial literacy is more critical in light of the new retirement program, the Blended Retirement System (BRS).

The BRS reduces retired pay by 20 percent while establishing a 5 percent match for members contributing to the Thrift Savings Plan (TSP). The BRS also provides a lump-sum retention bonus at the 8-to-12-year point and a lump-sum payout option at retirement for a reduced retired pay amount. Learn more about the BRS here.

A MOAA mission is to enhance financial literacy. Efforts include conducting base classes, publishing books and articles, and providing counsel and consumer advice to our Premium and Life members. You can review our publications at www.moaa.org/publications.