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Financial wellbeing is an important factor in the post-service lives of military veterans, who sometimes face physical and mental health challenges that can both impact and be impacted by their financial situations. As part of its annual survey, the Wounded Warrior Project studies the state of financial wellbeing among its more than 150,000 constituents.
The Wounded Warrior Project is a nonprofit veterans service organization that advocates for policies and initiatives that favor injured post-9/11 veterans. Its annual survey covers a broad range of topics from physical and mental health to post-service employment and financial wellness. The survey's examination of financial wellness assesses factors including financial wellbeing, financial strain, poverty, food security, and homelessness.
"Financial wellness is an important indicator of quality of life, and financial difficulties that result in a lack of money to meet basic needs are associated with major depressive orders, PTSD, and TBI among post-9/11 veterans," the report said. "Studies have shown that post-9/11 veterans who report not having enough money to cover basic needs were more likely to have post-deployment adjustment problems, such as criminal arrest, homelessness, substance abuse, suicidal behavior, and aggression."
More are facing "moderate" financial distress vs. general population
Using the InCharge Financial Distress/Financial Well-Being (IFDFW) scale, the survey found a mean score for the Wounded Warrior population of 5.6, which indicates moderate financial distress but is in line with the general population's overall score of 5.7. About 39 percent of Wounded Warrior respondents reported a high level of financial wellbeing equating to a low level of financial distress, compared with 42 percent of the U.S. general population.
However, substantially more veterans indicated a moderate level of financial distress (46.1 percent) compared with 28 percent of the general population. The general population reported a higher level of low financial wellbeing than veterans at 30 percent compared with 15.6 percent.
The survey examined levels of financial strain among veterans by asking respondents if there was a time during the past year when they felt they did not have enough money to pay for rent/mortgage, food, utilities, phone or other basic needs. About 42 percent of Wounded Warrior respondents indicated they had experienced financial strain in the past year.
The survey also assessed debt among veterans and found that more than nine in 10 had debt aside from mortgage debt, of which nearly half have debt of at least $20,000. Veterans' level of debt was in line with the general U.S. population at about $38,000 in 2020, excluding mortgage debt.
One in 10 living in poverty
Furthermore, nearly one in 10 veterans are living in poverty, the survey found, compared with 12.3 percent of the U.S. general population. The study measures poverty status using self-reported household income and family unit size against the Federal Poverty Level set annually by the U.S. Census Bureau.
The study's findings related to food insecurity suggest that veterans are more frequently food insecure compared with households in the U.S. general population. The overall mean score for the wounded veterans population was 1.5, which falls in the middle of food secure and insecure.
Warriors have lower rates of high food security (66.9 percent) compared with households in the U.S.general population (89.5 percent). About one in three wounded veterans met the threshold for being food insecure compared with 10.5 percent of U.S. households.
Finally, about one in 40 wounded warrior respondents indicated they had experienced some form of homelessness in the past 12 months. For the purposes of the study, homelessness was defined as having received any government housing assistance – such as rental assistance vouchers, transitional housing, supportive housing or participation in a Housing First Program – because they were homeless.
The study noted that financial strain increases the risk of homelessness, and homelessness increases the occurrence of chronic and co-occurring health conditions, and mental and substance use disorders.
Jobs play a role in stability
Employment can play an important role in financial stability. Out of all members surveyed, nearly 60 percent are participants in the labor force, although about 12,000 were unemployed. About 41 percent do not participate in the labor force, including 5,435 who are on active duty.
Those not participating in the workforce commonly reported that mental health or physical injuries from a service-connected disability prevented them from working, followed by being retired or being in a school or training program.
The survey found unemployed warriors spend an average of 24 weeks looking for work, and about 44 percent said mental and psychological distress is a barrier to employment. They also cited lack of skills and education applicable to the civilian workforce and family or childcare responsibilities as barriers.
Kristen Beckman is a freelance writer based in Colorado. She previously was a writer and editor for ALM's Retirement Advisor magazine and LifeHealthPro online channel. She also was a reporter for Business Insurance magazine covering workers compensation topics. Kristen graduated from the University of Missouri with a degree in journalism.
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