Military families are losing confidence in their ability to retire comfortably, according to the First Command Financial Behaviors Index.

The survey found that just 37 percent of middle-class military families, those with household incomes of at least $50,000, are extremely or very confident that their financial situation will improve over the next year, down from 41 percent in the first quarter. Only 34 percent are extremely or very confident they will be able to retire comfortably, down seven percentage points from the first quarter.

"This drop in consumer sentiment is the result of concerns over the economy in general and military retirement benefits in particular," said Scott Spiker, CEO of First Command Financial Services Inc. "Two-thirds of middle class military families say they feel nervous about a proposed phase-out of the traditional 20-year retirement system. One in five respondents say they are going to start looking into different retirement options. Combined with continuing economic uncertainty, the result is a loss of long-term financial confidence among active-duty personnel and their families."