Federal Employees Saving More than the General Public
December 1, 2009 (PLANSPONSOR.com) - Federal employees are ahead of the general population in personal savings, most notably within retirement accounts, according to the First Command Financial Behaviors Index.
Results of the Index’s semi-annual federal employee
survey indicate that federal employees 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% to $2,289, while other middle-class
Americans saw their monthly total fall 11% to $1,923, according to a press
Within retirement accounts, average monthly contributions
by federal employees surged 85% to $1,388, while the average for the general
population plunged 25% to $765.
In addition, federal employees’ average short-term
savings totaled $705, up 11% from $633, but the general population experienced
a drop in short-term savings to $860 — down 3% from $885. Average long-term
savings for families of federal employees totaled $196, up 145% from $80.
The general population also experienced an increase in
long-term savings — $298, up 11% from $268.
The Index found the upward movement in savings behaviors
by federal employees was mirrored in the military population, whose average
monthly contributions to short-term, long-term, and retirement savings accounts
rose 23% to $2,385.
Within the federal employee population, federal employees
with a financial plan developed by a financial adviser indicated they 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% of those without a plan.
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 ages
25 to 70 with annual household incomes of at least $50,000.
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