How are Veterans Faring Financially? Updates and New Evidence from a National Survey

Abstract

This research provides updated and new evidence on the financial well-being of military veterans. We leverage data from two waves of the FINRA Investor Education Foundation’s National Financial Capability Study (NFCS) to examine how veterans are faring over time, relative to comparable civilians, and among different demographic subgroups. Overall, veterans in 2018 are faring better than those in 2015 in a number of areas. They have less difficulty covering expenses and bills, lower likelihoods of experiencing an income drop, and higher likelihoods of having emergency funds and retirement plans in addition to an employer plan. Veterans in 2018 are, however, more likely to report problematic credit card behaviors. Relative to non-veterans, veterans continue to fare better in many areas. They report higher financial well-being, lower levels of financial anxiety, and a higher likelihood of having a will. They are also more likely to participate in the gig economy. Veterans who are female; who are younger; who are married, divorced or separated; or who have financial dependents are faring worse than their veteran peers. Further, black veterans are faring somewhat better than white veterans, while those identifying as an “Other” race/ethnicity are faring worse.