This study, funded by the Forces in Mind Trust (FiMT) addresses the prevalence and drivers of financial (in)stability of military families in the United Kingdom. It also describes what finance-related support exists for military families, what the strengths and limitations of this support landscape are, and what opportunities exist to improve policy and support provision.

Examining the financial stability of UK military families

An exploratory analysis

Linda Slapakova, Kristin Thue, Luke Huxtable

ResearchPublished Jun 28, 2023

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The particular demands and nature of life in the Armed Forces, such as high levels of mobility, may contribute to financial difficulties or reduced financial stability for some personnel and their partners. This can negatively impact the quality of life of military families, affect the mental wellbeing of personnel and their partners, and reduce the likelihood of a successful transition to civilian life.

However, there is a lack of research, particularly in the UK, on the potential extent of financial instability among current and former Service personnel and their partners as well as how the unique characteristics of Service life contribute to it. This study aimed to fill this gap by exploring levels and drivers of financial stability among military families in the UK and the extent to which characteristics of Service life can play a positive or negative role. It also examined the scope of existing finance-related support and proposed recommendations to improve policy and support provision. Rather than empirically measuring levels of financial stability and the impact of Service-related factors, the study provided initial exploratory analysis as an basis for a broader research agenda on the financial stability, resilience and wellbeing of the UK Armed Forces Community.

Key Findings

The study found mixed results on how members of the Armed Forces Community perceive their financial stability.

  • Study participants were generally positive about the stability of their household incomes but less positive about the stability and adequacy of their financial resources and ability to recover from financial shocks.

Military Service uniquely shapes families' financial stability in positive and negative ways.

  • Factors that are seen as positively shaping financial stability are access to subsidised housing, the value of the Armed Forces pension, access to operational and non-operational allowances, value of basic pay, and healthcare provision for Service personnel.
  • Factors that are seen as having a negative impact are reduced partner employment opportunities, limited childcare accessibility and affordability, costs associated with circumstances of Service life (e.g. relocation and separation), challenges for long-term financial planning, and loopholes or gaps in Service-linked allowance schemes.

The study indicated a disconnect between stakeholders' perceptions of the Offer and Service personnel and their partner's lived experience of it.

  • While stakeholders interviewed in the study frequently commented on the Offer's comprehensiveness compared to civilian compensation, Armed Forces personnel and partners oftentimes perceived its value as eroding.

Significant finance-related support exists in the UK to help mitigate financial risk for military families, in the form of mechanisms that focus on financial behaviours, direct financial support, as well as indirect (e.g. housing and employment) support. However, there are various opportunities for strengthening the support landscape.

Recommendations

The study provided 14 recommendations oriented at:

  • Strengthening the overarching approach to enabling and sustaining the financial stability of military families, e.g. through fostering the inclusion of military partners in all aspects of policy and support relating to financial stability of Service personnel.
  • Building a comprehensive offer of financial literacy education for Serving personnel and their partners as part of the holistic transition policy.
  • Improving information provision, including information about available support mechanisms, to aid military families' financial management.
  • Addressing barriers to accessing support and help-seeking, e.g. through ensuring consistency of information-sharing and support pathways across Defence.

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Slapakova, Linda, Kristin Thue, and Luke Huxtable, Examining the financial stability of UK military families: An exploratory analysis. Santa Monica, CA: RAND Corporation, 2023. https://www.rand.org/pubs/research_reports/RRA2514-1.html.
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This research was funded by the Forces in Mind Trust, an independent UK Trust supported by the National Lottery Community Fund and conducted by RAND Europe.

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