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Financial planning for retirement in public safety

Today, most agencies have reduced or eliminated pensions; that means it’s on you to financially plan for retirement

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Editor’s Note: The standard for excellence in public safety is changing. Lexipol is your partner in understanding how your agency measures up and setting a course to achieve performance excellence. Schedule a consultation with our team today to learn about our holistic approach built on Gordon Graham’s 5 Pillars of Organizational Success.



Gordon Graham here with Today’s Tip from Lexipol. Today’s Tip is for all my friends in public safety, and it has to do with planning for the future.

Back in the 80s, Huey Lewis and the News had a song with a chorus that went, “I’m takin’ what they’re givin’ ‘cause I’m workin for a livin’.” Not that long ago, public safety personnel could count on a guaranteed pension — with health care included — when they retired. In those days, you could literally take what they were givin’ and live comfortably in retirement.

Today, many employers have reduced or even eliminated pensions in favor of 401(k)s or other plans without a guaranteed payout. This means it’s up to you, the employee, to plan for income in retirement.

Experts will tell you the key to a comfortable retirement is to begin saving early. This is especially true with defined contribution retirement plans. Many employers will match your contribution up to a certain percentage. If you only put in the minimum to get the employer’s match, you’ll probably come up short of what you’ll need for a comfortable retirement.

While it might seem like retirement is centuries away, it’ll be here before you know it. So what can you do? First off, contribute at least the minimum amount to get your employer’s full match — and preferably more. If your agency offers health savings accounts, contribute to one of those, too. This will get you on the way to funding health care and living expenses in your later years.

Once you’ve started, keep the momentum going. Each time you get a raise, add half of it to your contribution. If you have a 457 plan available, consider contributing funds there, too. You can also open an Individual Retirement Account, or IRA.

At the end of the day, it’s your retirement. Don’t just take what they’re givin’ or you might find yourself workin’ for a livin’ long after you planned.

And that’s Today’s Tip from Lexipol. Gordon Graham, signing off.

Gordon Graham has been actively involved in law enforcement since 1973. He spent nearly 10 years as a very active motorcycle officer while also attending Cal State Long Beach to achieve his teaching credential, USC to do his graduate work in Safety and Systems Management with an emphasis on Risk Management, and Western State University to obtain his law degree. In 1982 he was promoted to sergeant and also admitted to the California State Bar and immediately opened his law offices in Los Angeles.