Why Your Pension Isn’t Enough: The Truth Every First Responder Needs to Hear

For decades, police officers and firefighters have been told a comforting story: “Work 20–30 years, retire, and your pension will take care of you.”

While pensions are a powerful benefit, the reality is this: your pension alone is not enough to guarantee financial freedom in retirement. Let’s break down some common misconceptions — and what you can do to create margin in your finances so you can take control of your future.

Misconception #1: “My pension replaces my full salary.”

Most pensions replace 50–80% of your final salary — sometimes less, depending on your years of service and the health of the pension fund. That means if you’re making $100,000 in your final years, your pension check might only be $50,000–$80,000.

Now think about inflation. The cost of gas, groceries, and healthcare keeps climbing — and your pension doesn’t always rise at the same pace. That gap can feel much bigger 20 years into retirement.

Misconception #2: “My pension is guaranteed.”

We’ve all seen the headlines. Municipal pension systems across the country are underfunded, and some have been forced to cut benefits or raise contribution rates. Even if your pension looks strong today, you can’t assume it will always remain untouchable.

A smart retirement plan assumes nothing is guaranteed. That’s why it’s critical to build your own supplemental savings — but that only happens if you first create financial margin.

Misconception #3: “I don’t need to worry about retirement until later.”

First responders are in one of the most demanding and dangerous professions. Many retire earlier than workers in other fields — sometimes in their 50s. That means your money may need to last 30–40 years in retirement.

Waiting until your final years of service to start saving puts you way behind. The earlier you start, the more powerful your money becomes thanks to compound growth. And the only way to start early is by carving out margin in your budget today.

Why Margin and Supplemental Savings Are Essential

To fill the gap between what your pension provides and what you’ll actually need, you must first create margin in your budget — breathing room that allows you to invest. Margin is built by getting on a plan, telling your money where to go, and cutting unnecessary expenses so dollars are freed up for your future.

Once you’ve created margin, you can direct it toward:

• 457(b) Deferred Compensation Plans
  Save pre-tax dollars, lower your taxable income, and grow retirement savings automatically.
  
  

• Roth IRA
  Contribute after-tax dollars now, and watch them grow tax-free. Withdrawals in retirement come out tax-free — a huge advantage when your pension check may already be taxed.
  
  

• Additional Brokerage Accounts
  If you’ve maxed out your 457 and IRA options, a taxable brokerage account can give you even more flexibility and growth.
  
  

Margin gives you options. Without it, you’re stuck relying only on your pension — and that’s a dangerous plan.

The Bottom Line

Your pension is an incredible benefit — but it was never meant to be your only plan. Think of it as one leg of a three-legged stool: without creating margin and using that margin to build personal savings and investments, your retirement will wobble.

As a first responder, you’ve spent your career protecting others. Now it’s time to protect your own financial future. Start small, create margin, and put those extra dollars to work in the right vehicles. That’s the path to true financial peace.

👉 Action Step: Take 10 minutes this week to look at your pension projection.  (Do you even know how much you are contributing?) Then look at your current budget. Where can you create margin — $100, $250, $500 a month? Redirect that money into a 457(b) or Roth IRA and start building a retirement that actually works.

💥 Ready to Take Control of Your Money?

You don’t need another sales pitch—you need a game plan.

👉 Book a Free Consult or Bring This Training to Your Agency 👮‍♂️ 

Or shoot me a message if you’ve got questions. I’m always here for the first responder community.