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How retirement plan design can help employers recruit and retain a valuable employee group: Military spouses

25 July 2025

Military spouses are often highly educated, adaptable, and loyal employees; however, many struggle to save for retirement due to frequent relocations, job changes, and limited access to high-paying work options. Employers may inadvertently exacerbate the problem by implementing protracted 401(k) vesting schedules and limited leave benefits that fail to meet the unique needs of military spouses. This article, published by the Plan Sponsor Council of America (PSCA), presents background on military spouses and how companies can boost recruitment and retention of this valuable segment of the civilian workforce.

Read the article at the PSCA website.

Highlights

  • Demographics: 85% of military spouses are female, 82% are 40 years of age or younger, and half hold a bachelor’s (32%) or advanced degree (18%).
  • The struggle to save for retirement: About half of military spouses have experienced the problems of finding new employment (49%) or losing their income (45%) after a spouse's transfer to a new location.
  • Failure to attract military spouses: Companies’ hiring and benefit choices may be contributing to the problem.
  • Retirement plan redesigns: Employers may be better able to attract military spouses by implementing alternative structures including retirement plan portability, immediate 401(k) plan vesting, and pooled employer plans.
  • Workplace flexibility: Remote work polices, flexible leave, and participation in the Military Spouse Employment Partnership can help foster an environment that caters to the group.
  • Financial benefits: Companies that hire military spouses can save on office costs, potentially experience better talent acquisition outcomes, and may be able to tap federal incentives such at the Work Opportunity Tax Credit.

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