Cost Of Elderly Care Challenging Military Families, First Command Reports

First Command Financial Behavior Index® reveals that half of middle-class servicemembers

who care for an elderly family member say costs are higher than they expected

FORT WORTH, Texas – At a time when men and women in uniform are dealing with the twin uncertainties of a global economic turmoil and defense downsizing, many military households are facing an extra financial challenge: caring for an elderly family member.

The First Command Financial Behaviors Index® reveals that 36 percent of middle-class military families (senior NCOs and commissioned officers in pay grades E-6 and above with household incomes of at least $50,000) either care for or anticipate caring for a parent or other elderly family member. This compares to just 22 percent of the general population of middle-class families.

The Index reveals that military families envision elderly care in a variety of forms. Many survey respondents are focused on in-home care (44 percent in their own home and 40 percent in the home of the elderly family member). The Index indicates that military families also recognize the need to pay for professional assistance, including:

• Home care services (30 percent)
• Health care services (11 percent)
• Nursing home care (10 percent)

Notably, the prospect of providing elderly care is shaking the long-term financial confidence of these current and future caregivers. The Index reveals 31 percent are not confident in their ability to retire comfortably. (Retirement confidence is stronger among the rest of middle-class servicemembers; just 22 percent say they are not confident.)

This crisis in confidence comes at a time when many military families appear ill-equipped to deal with the financial demands of elderly care. Among those already caring for an aged relative, more than half say the cost of care is more than they expected. The Index reveals that just 16 percent of them have done any specific financial planning related to the cost of this care. And among this group, only one in four have turned to a financial advisor for help.

“As the ranks of older Americans continue to swell, many military families are not prepared for the economic reality of ensuring elderly care for their own family members,” said Scott Spiker, CEO of First Command. “These findings underscore the importance of providing meaningful financial planning support to our men and women in uniform as they prepare for the future care of their loved ones.”

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.