As the Department of Defense looks to cut costs, there have been some concerns over the military's readiness. A new report from the Congressional Budget Office (CBO) may allay some of those concerns, because analysts found that a modest reduction to annual pay raises will allow the Armed Forces to save money while still retaining its current levels of readiness, Military Times reports.

The proposed change mirrors a similar point made in the 2014 Obama administration budget, which suggests reducing annual pay raises for active duty troops from 1.7 percent to 1 percent. The CBO points out that even adjusting payment to reflect inflation instead of private-sector growth, as is the case now, would save around $45 billion through 2021. There is some concern that such a reduction could hurt recruiting and retention, but the CBO says it shouldn't.

"The fact that military compensation has risen dramatically over the past decade – to the extent that, on average, enlisted military personnel now earn more than 90 percent of civilians with similar education and experience – could lessen the effects of such a policy," the CBO said

Military families who are concerned about the impact of sequestration can take solace in the fact that their paychecks will never be delayed, nor will their allowance for housing, according to the National Military Family Association.