Sequestration And Fiscal Cliff Fears Drive Belt Tightening In Military Families, First Command Reports

FORT WORTH, Texas - (BUSINESS WIRE) - As the year-end fiscal cliff deadline approaches, military personnel are increasingly worried about their financial futures - and they are taking actions to shore up their household finances.

The First Command Financial Behaviors Index reveals that two thirds 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) are not confident that Washington will be able to avert the automatic tax hikes and spending cuts known as the fiscal cliff that kick in on Jan. 1 unless Congress intervenes.

"The fiscal cliff is a major concern for servicemembers and their families," said Scott Spiker, CEO of First Command Financial Services, Inc. "Roughly seven in ten believe that a failure to resolve the fiscal cliff stalemate will mean an increase in their taxes and a slowdown in job growth. Two thirds of survey respondents fear the U.S. economy might slip back into recession."