Reality Check: Study Finds Military Members Financially Confident, but Facing Unanticipated Struggles

CHANTILLY, Va.--(BUSINESS WIRE)--

A study released today by the Military Benefit Association (MBA) reveals that members of the United States Military are more confident in their investing ability and more willing to take risks compared to non-military members, though this optimism wanes as military members transition out of the service. The study, which was supported by MetLife, sought to better understand the financial challenges and opportunities of active duty military, veterans, retired members of the military and reservists.

According to the study, members of the military are 95 percent more likely to say they are very or extremely knowledgeable than non-military members about investing or retirement savings (39 percent versus 20 percent). However, this confidence fades over time. Those who have served are 100 percent more likely than those who currently serve to feel financially unprepared for death (40 percent versus 20 percent) and 68 percent more likely to say that they are not at all prepared for unexpected financial expenses.

"With today's dynamic financial environment and possible future changes to military pay and compensation, it's more important than ever for military members to stay proactive when planning their financial futures," said Mike Reyna, MBA President. "Service members need to be aware—and take advantage—of all the resources at their disposal, in order to set themselves and their families up for financial success."

The Truth Behind Financial Security and Preparedness

On the surface, it appears that military members are well-prepared for financial unknowns. In fact, they are 58 percent more likely than non-military members to believe they are very or extremely well prepared for unexpected financial expenses, and 116 percent more likely to expect to have life insurance or financial security upon death.

In actuality, however, those in the military are 60 percent more likely than non-military members to have experienced debt-management stress in the previous month, and 43 percent more likely to have experienced physical illness related to financial issues. Younger members of the military appear to be most vulnerable; those ages 25-34 are 75 percent more likely to have experienced debt-management stress compared to their non-military counterparts. Also, those with a household income of more than $150,000 are 92 percent more likely than the general population to report a physical illness due to financial stress.

"What military veterans are finding out—and what those who are currently serving should realize—is that there's no limit to financial knowledge and understanding," added Reyna. "Whether it's protecting their financial legacy with life insurance or solidifying a retirement plan, building strong financial literacy habits now can help military members alleviate the financial stressors that many experience later on in life."

Help Wanted: Military Members Crave More Financial Education

According to the study, on two financial knowledge tests, military members made more mistakes than the general population on questions about inflation and stock investing risk (38 percent and 56 percent more mistakes, respectively).

The good news? They are eager to get better and learn more about finances, investing and retirement planning. Fifty-eight percent of military members express interest in financial education while only half (49 percent) of the general population feel the same, and they are most interested in receiving information through technology-based tools and online courses.

Specifically, more than one third of military members who seek financial education want to learn about:

• How to invest (46 percent)
• How the stock market works/different types of traded investments (36 percent)
• Practical money skills (35 percent)
• What financial tools are currently available/how they're used (34 percent)
• Investment sources and the type of information they provide (34 percent)

MBA believes all current and former members of the military should have access to the financial support they want and need. MBA provides access to financial education and planning resources for its members which can help them mitigate, manage and overcome financial burdens. Their financial resources include financial education on all stages of life, financial calculators, e-seminars, market alerts and summaries, and customized financial newsletters, in addition to no-cost will preparation services.

About Military Benefit Association

Military Benefit Association was founded by military personnel to help advance and safeguard the economic interests and financial welfare of military personnel. For over 50 years, MBA has operated as a non-profit organization and provides benefits and services to help its members and their families improve their financial position. For more information, visit www.militarybenefit.org.

About MetLife

MetLife, Inc. MET, through its subsidiaries and affiliates ("MetLife"), is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

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