A new research report focusing on the retirement prospects and finances of U.S. military households, published today by the Employee Benefit Research Institute (EBRI) and Greenwald Research, found that military households are more likely to have higher assets and less likely to consider debt a problem compared with non-military households. Also, military households with higher incomes are more likely to be confident about retirement prospects than non-military households.
The report, “Military Households and Retirement: Findings From the 2024 Retirement Confidence Survey,” examines the retirement prospects, knowledge, preparations and experiences for those who are from a military household compared with a non-military household. (Military households are defined as those individuals who have served in the U.S. armed forces or are currently active in the National Guard or Reserve, as well as those who are married or partnered to or widowed by such individuals. The vast majority of the military households have respondents who are veterans or have a spouse who is a veteran).
Key findings in the report include:
• Military households are more likely to have the highest levels of financial assets and less likely to consider debt to be a problem than non-military households. Forty-nine percent of military households report having $250,000 or more in financial assets compared with 40% of the non-military households having this amount. Fifty-five percent of military households consider debt to not be a problem, while 46% of non-military households consider debt to not be a problem.
• Military households are more likely to have done various tasks in preparing for retirement than non-military households. In particular, military households are more likely to have thought about how much money to withdraw from their retirement savings and investments in retirement (52% vs. 42%), thought about how they will occupy their time in retirement (68% vs. 58%), calculated how much money they would likely need to cover health expenses in retirement (50% vs. 41%), estimated how much income they would need each month in retirement (63% vs. 54%), and planned for how they would cover an emergency or big expense in retirement (56% vs. 47%) than non-military households.
• Military households in the higher two income groups ($35,000-$74,999 and $75,000 or more) are more likely to be confident in their retirement prospects than non-military households, but no difference in this confidence is observed among those in the lowest-income group (less than $35,000). Specifically, 89% of military households with incomes of $75,000 or more are confident that they will have enough money to live comfortably throughout their retirement compared with 81% of their non-military counterparts. For the middle-income group, 72% of military households vs. 61% of non-military households are confident in their retirement prospects.
• Approximately 9 in 10 respondents in military households disagree with the statement that their military service has prevented them from saving for retirement. Furthermore, 71% of respondents from veteran households said they separated from service before military retirement, while 24% retired from the military and 6% medically retired.
• Military-household respondents are less likely to express concern over various scenarios that could impact Americans’ retirement finances or retirement in general than are non-military households. The scenarios less likely to be of concern to military households include the potentials for rising housing costs, increasing cost of living making it harder for them to save as much money, or having to make substantial cuts to their spending because of inflation.
• The top four sources of information are consistent across military and non-military households: family and friends; a personal, professional financial advisor; online resources and research conducted on their own; and employer or information received at work. However, military households are significantly more likely than non-military households to say they use non-profit organizations that focus on serving a specific group or community as a source of information, while non-military households are more likely to say that family and friends are a source of information.
• Military-household retiree respondents are more likely to say that they retired when they planned than non-military household retiree respondents. Among those who retired earlier than planned, the top three reasons cited by both military and non-military household respondents are that they could afford to retire; they had a health problem or disability; or there were changes at their company, such as downsizing, closure or reorganization.
• Military-household retirees are in general positive about their lifestyle. Specifically, 80% of military retirees say their lifestyle is what they expected or better before they retired and 71% say they are having the lifestyle they had envisioned. Non-military retirees have similar feelings about their lifestyle in retirement.
“Military households seem to be in better financial shape and are more likely to be confident in having enough money to last throughout retirement as well as various other aspects about retirement than non-military households. These households are more likely to have saved for retirement, to have done various other tasks to prepare for retirement and to be currently collaborating with a financial advisor. Finally, an overwhelming share of individuals agree that their military service did not prevent them from saving for retirement,” explained Craig Copeland, director, Wealth Benefits Research, EBRI.
The Retirement Confidence Survey is conducted annually by EBRI and Greenwald Research. The 2024 survey of 2,521 Americans was collected online from Jan. 2-31, 2024. All respondents were ages 25 or older. The survey included 1,255 workers, 1,266 retirees and an oversample of 829 respondents from military households (330 workers and 499 retirees). To view a 2024 RCS military households summary report, visit www.ebri.org/retirement/retirement-confidence-survey.
“While individuals in military households appear to be better prepared and more confident in their retirement prospects, many seem to navigate at least one significant change in their careers, as a very high share separate from service before military retirement. The transition requires knowing what to do with their retirement savings, past and future, as they switch careers. While career changes happen to many Americans, it’s certainly imaginable the change for military personnel is more complex and may include learning about a whole new set of retirement and financial wellbeing benefits. While military service can put individuals on a better track, they still face many of the same issues as those who have not served, such as determining when to retire, accumulating and preserving assets, and managing income sources for retirement,” said Lisa Greenwald, CEO, Greenwald Research.
The 2024 survey was made possible with support from American Funds / Capital Group, Ameriprise Financial (Columbia Threadneedle), Bank of America, Empower, Fidelity Investments, FINRA, Jackson National, JPMorgan Chase, Mercer, Mutual of America, Nationwide, National Endowment for Financial Education, PGIM, Principal Financial Group, T. Rowe Price, USAA and Voya Financial.
family and friends are a source of information. News From The Employee Benefit Research Institute • Military-household retiree respondents are more likely to say that they retired when they planned than non-military household th retiree respondents. Among those who retired earlier than planned, the top three reasons cited by both military and non-military 34 Annual Retirement Confidence Survey Finds U.S. Military Households Are More Likely in a household respondents are that they could afford to retire; they had a health problem or disability; or there were changes at their Better Financial Situation Than Non-Military Households company, such as downsizing, closure or reorganization. • Military-household retirees are in general positive about their lifestyle. Specifically, 80% of military retirees say their lifestyle is what - Military households with higher incomes are also more likely to be confident about retirement they expected or better before they retired and 71% say they are having the lifestyle they had envisioned. Non-military retirees have prospects than non-military households - similar feelings about their lifestyle in retirement. F “Mi or liim tam ry edi ho at us e eho releas lds e: see 7/ m 23 to /2 be 4 in better financial shape and are more likely to be confident in having enough money to last throughout r Feti or rm em orent e inf as o rwel mati l as on: v ar Ro io n us D ro es ther ner aspects about retirement than non-military households. These households are more likely to have dr saved esner fo @ r r eb eti rr i.e o m rg ent, to have done various other tasks to prepare for retirement and to be currently collaborating with a financial advisor. Finally, an overwhelming share of individuals agree that their military service did not prevent them from saving for retirement,” ( eW xpl as ai hi ned ngto Cn, ra iD g. C Co .)pel – A an new d, di rr es ec ear torc , h W rea epo lth rt B fen ocus efiits ng R o es n ear the ch, reti Er B em RI. ent prospects and finances of U.S. military households, published today by the Employee Benefit Research Institute (EBRI) and Greenwald Research, found that military households are more likely to have hi The ghe Rr eti as rem sets e nt and Co les nfi sdenc likele y to Sur cv o ey nsiide s cr o ndu debt cted a pran obl nua eml lc y oby mpa EB rR ed I an wi d th Gno ree nn -wa millid taR ry es ho ear us cehol h. The ds.2 A 0l2 s4 o ,s m urivey litaro y fho 2,5 us 2eho 1 Am lds er wi ican ths hi wa ghe s r i co nc lo lec mted es ar onl e m ine orfe ro lim kel Jy an to . 2 be -31 c,o 2 nfi 02 de 4.nt Allab res out po r ndent etirem s en wer t pr e ag oses pec 2ts 5 o tha r on lder no.n T -m he ils ita urrvey y ho ius nceho luded lds1 . ,255 workers, 1,266 retirees and an oversample of 829 respondents from military households (330 workers and 499 retirees). To view a 2024 RCS military households s Tum he m repor ary t, repor “Mit, lita virs y it H www ousehol .ebr ds i.o an rg/ d reti Reti rem rem ent/ ent: reti Fir ndi em n ent gs F -c ro onfi m denc the 2e 0-2 s4 ur R vey eti.r ement Confidence Survey,” examines the retirement prospects, knowledge, preparations, and experiences for those who are from a military household compared with a non-military “ ho W us hiehol le indi d. v (iMi dua lita ls riy n ho mius lita ehol ry ho dsus ar ehol e defi dsned appear as tho tos be e indi bett vie drua pr ls epar who ed ha an ve d s m er o ved re co in nfi the dent U.Si.n ar the med ir reti forrc e es m e ont r ar pr e o csu pec rrets nt,l y macti any ve see in m the to na Nati vig oa na te l at Gua leas rd t oo r ne Res ser igni ve, fi c as an wel t chlan asg tho e in se thei who r c ar aree e m rsar , as ried a ver or y pa hi rg tner h sha edr e tos epar or wia do te w fr ed om by ser suc vic h e indi befvi or dua e m ls il.i ta The ry r veti ast re m m aj en or ti.ty The of the tr man ilita sir tiy oho n rus equi ehol res d s kn ha ove wing res wh poat ndent to do s who with ar thei e vr ete reti ran res m oent r ha sve avi a ng spo s, pa uss e t who and f is utu a veter re, asan they ). switch careers. While career changes happen to many Americans, it’s certainly imaginable the change for military personnel is more complex and may include learning about K a ey who findi le new ngs in set the of rr epo etirr et m inc en lude: t and financial wellbeing benefits. While military service can put individuals on a better track, they still face • mM aniy lito afry the hosu am seh e o is ld sues s ar e as m tho ore s e lik who ely tha o h ve av no e t t h se er h ved igh,e s suc t le h vas el s deter of fin m ain ni cng ial when assetsto a n rd eti le re, ss acc like um ly t u o lati con ng s ian ded r pr dees bter to vi b ng e as a p sets rob ,l an em d t m han anag no ing n- m inc ili o tm ary e s h o o ur us ce es h o fo ld rs r.eti Forre ty m -n ent ine ,” per said ce Lnt isa oG f r m ee ilin ta w ral y d, ho C us EO ehol , Gr ds ee r nwa epor ld t ha Res vear ing c $ h. 25 0,000 or more in financial assets compared wi th 40% of the non-military households having this amount. Fifty-five percent of military households consider debt to not be a pr The obl 2e 0m 24 , whi survey le 46 wa % so m f no adn e -po mis lis ta ibl ry e ho wius th eho supp lds o rc t ofns roim der A m de ebt ricto an no Fund t be s / a C pr ap oibl ta em l G.r oup, Ameriprise Financial (Columbia Threadneedle), B ank of America, Empower, Fidelity Investments, FINRA, Jackson National, JPMorgan Chase, Mercer, Mutual of America, Nationwide, N • ati Mio lina tary l E nd hoo uw se m hent oldsf o ar r e F im na o nc rei al lik E educ ly to ati h o an, ve P d Go IM, ne P va riri no ciu pa s t l a Fs ina ks nc in ip alr e Gp ro ari up, ng Tf .o R r orwe etirP erm ice e, n US t th Aa A n an no d nV -m oyia litF airy na nc hoiu al s.e holds. In pa rticular, military households are more likely to have thought about how much money to withdraw from their retirement savings and i G nr ves eenwa tmelnts d R ies n ear retic rh em is ent a leadi (52ng % vs in.depend 42%), tho ent ug res ht ear abc oh ut an ho d w co they nsulti wi ng ll o pa cc rtne upy r thei to the r tim heal e in th reti anr d em weal ent th (6i8 nd %us vs tr . i5 es 8% tha ), c t al ap cul plat ies ed hiho ghw - m qua uc lh ity m m oetho ney th ds ey towo pro ul du d lc ik e el kn y o ne wed ledg to e ctha ove t rhe heal lpsth coe m xpens panie es s s in tar y eti co rm em peti ent ti( ve 50an % d vsna . 4vi 1% gat ),e es in tidus matr ted y cho haw ngm e.uc Leve h inc rag om ing e they deep wo subj ulec d t m need atteeac r ex h per mo tinth se, G in ree reti nwa rem ld ent off( er 63 s % co vs m.pr 54 eh %ens ), an ivd e pl ser an vi ned ces f fo or r ho dev w elthey oping wo im ul pa d c ctf ove ul rr es anear em cer h tha genc t an y o sr w bi er gs e sx tr pens atege ici n bus reiti nes rem s q eues nt (ti 56 o% ns. vs Fo.r 4 m 7% or)e tha infn orno mati n-m on, ili ta vir sy it ho www usehol .gree ds nwa . ldresearch.com. • The MiE lim tap ry lo h yee ou s B e en ho efi ldt s R in es tear he h ch igIh ns er tit tut wo e iin s c a ono me n - gr pr o o u fi p t, s i($ ndepende 35,000-$nt, 74 ,an 99d 9 unb andi as $7 ed 5,0 r0 es 0ear or c m h o o rr e g ) an arie zati mo on retha like t lpr y t oo vi b des e c o the nfim de o n stt in their r au eti tho rem rita en titve pran osp d e ocbjec ts th tia ve n n inf on o- rm miati lita ory n ab ho o u ut sec h ro iti ld cs al , b isu sues t no r d el iff ati eng ren tc oe em in t ph lo isy ee con ben fide efi nc t e pr iso o gb ra sm erv s ie n dthe amUni ong ted tho Sste at ies n t . h Te he loo w re gan st-ization al ins co o m coe o gr rdi o na up tes (le acti ss tv hia tin es $ f 3 o 5r, 0 the 00)C . ent Spec eri fi fo cal r R ly es , 8 ear 9% co h fo m n iH lita eal ry th ho Bus en ehol efitsds Inno with vati inc on, om Fes ina o nc f $ ial 7 5 W ,0e 0l0 lb o ei rn m g o Rr es e ear are cc h oC nfi en dent ter an tha d t they will ha Reti ve rem enou ent gh Sec mu or ney ity R to es lear ive c ch om Cen for ter tabl an y d thr pr o o u du gho ces ut a thei varr iety retio rem f leadi ent nc g o im ndu pas rt ed ry wi sur th ve 8 ys 1% dur ofi n thei g the r no year n-m . iF lio ta r r m y o co re un inf ter orp m ar ati tso . F n, o r vi the sit www middl .e ebr -inc i.o or m g.e group, 72% of military households vs. 61% of non-military households are confident in their retirement prospects. • Approximately 9 in 10 respondents in military households disagr # e e # w ith the statement that their military service has prevented them from saving for retirement. Furthermore, 71% of respondents from veteran households said they separated from service before military retirement, while 24% retired from the military and 6% medically retired. Media Note: To receive a summary survey research report, email Ron • Military-household respondents are less likely to express concern over various scenarios that could impact Americans’ retirement Dresner at dresner@ebri.org. Also, there is a special webinar about this finances or retirement in general than are non-military households. The scenarios less likely to be of concern to military households include the potentials for rising housing costs, increasing cost of living making it harder for them to save as much money, or having to retirement report regarding military households that will be held this make substantial cuts to their spending because of inflation. Thursday. See link for event details and to register - • The top four sources of information are consistent across military and non-military households: family and friends; a personal, https://members.ebri.org/events/EventDetails.aspx?id=1871305 professional financial advisor; online resources and research conducted on their own; and employer or information received at work. H owever, military households are significantly more likely than non-military households to say they use non-profit organizations that f ocus on serving a specific group or community as a source of information, while non-military households are more likely to say that 1 2