Military financial education: DOD should improve oversight to ensure trainings effectively support service members

Abstract: As of January 1, 2018, all new military personnel are automatically enrolled in the Blended Retirement System (BRS). Under BRS, service members receive employer contributions to a personal Thrift Savings Plan (TSP) account—a retirement savings and investment plan similar to a 401(k) plan offered by a private sector employer. After retiring from military service, they may also receive an annuity—regular monthly payments for life based on military earnings and years of service. The Department of Defense (DOD) reported that as of December 31, 2023, BRS participant TSP accounts had a total value of approximately $28 billion. DOD also implemented a new financial readiness training program for service members. The training must be provided at certain points in a service member’s career, such as initial entry, promotion, and pre- and post-deployment. The training covers a range of topics, including retirement. In a 2024 report to Congress, DOD noted the importance of this training, describing ongoing financial education as vital for force readiness. In 2019, we reported on the steps DOD had taken to help service members understand BRS and to educate service members on saving for retirement (GAO-19-631). That report included two recommendations, now implemented, for DOD to evaluate the results of financial literacy training assessments and provide disclosures that describe key parts of BRS. We have also previously reported on the financial challenges some service members face, such as affording housing. In reports published as recently as 2024, we have made recommendations to DOD to address some of these concerns. House Report 118-529 contains a provision for us to review how DOD and the military services have implemented financial readiness training and assessed the financial security of service members, as it relates to BRS. We are providing information on BRS, how DOD’s financial readiness training efforts compare to best practices for promoting financial education, and how DOD measures the financial security of service members.

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