Eldercare Costs Pose Financial Challenges for Military Families

FORT WORTH, Texas – The financial demands of eldercare are straining the budgets of many military families, with new data highlighting the growing burden as service members take on caregiving responsibilities for aging relatives.

A survey conducted by First Command Financial Services, Inc. found that 63% of middle-class military households—defined as commissioned officers and senior noncommissioned officers (E-5 and above) earning at least $50,000 annually—are now providing care for elderly family members. That’s a significant jump from 13% in 2012, when the company first began tracking eldercare trends as part of its First Command Financial Behaviors Index®.

Eldercare costs are presenting a significant challenge for many, with 58% of respondents reporting higher-than-expected expenses, and 53% calling these costs a severe financial concern.

The average caregiving family spends $1,647 per month, with expenditures directed toward:

• Home care services (48%)
• Nursing homes (28%)
• Health care services (15%)

Military families are also taking on these responsibilities at higher rates than their civilian counterparts. Among the general population, just 23% report caring for an elderly relative, with average monthly costs slightly higher at $1,839. Civilian caregivers similarly report financial strain, with 56% citing unexpected costs and 34% identifying eldercare as a severe concern.

Looking ahead, 31% of military families and 21% of general population households anticipate providing eldercare to a parent or other elderly relative in the future, such as a grandparent, aunt, or uncle.

First Command President/CEO Mark Steffe stressed the importance of financial planning to navigate the economic challenges of eldercare.

“Nine out of ten military families who are caring for an elderly family member said they planned in advance for the costs,” Steffe said. “One out of four sought help from a financial advisor. Working with a knowledgeable financial coach is a prudent way for military families to prepare for and deal with the economic realities of eldercare while continuing to pursue their own financial goals.”

About First Command

First Command Financial Services and its subsidiaries, including First Command Brokerage Services and First Command Bank, coach our Nation’s military families in their pursuit of financial security. Since 1958, First Command Financial Advisors have been shaping positive financial behaviors through face-to-face coaching with hundreds of thousands of client families.