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 release.

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.

More information is at www.firstcommand.com/research.