If you’re like most firefighters, you’re married and own a home. In fact, the rates of marriage and home ownership among American firefighters are typically higher than national averages. A recent FireRescue1 study showed that 77% of male firefighters are currently married¹, while a 2014 Ancestry.com study revealed that 84% of firefighters own their homes² rather than renting–rates even higher than surgeons and lawyers.
Obviously, everyone’s personal situation is different, but firefighters do share one common trait: a stable paycheck, a reliable career, and a guaranteed pension. Stability attracts people, which lends itself to home ownership and marriage. However, there are still a significant number of single firefighters, and everybody deserves customized financial planning and a secure retirement. This article will highlight the differences between married and single financial planning, so regardless of your marital status, you can set yourself down the right path to help achieve long-term financial readiness.
Financial Planning for Single Firefighters
When you’re single, your finances are easier to manage overall, and life is generally cheaper, even if all of your financial responsibilities lie firmly on your shoulders. You also don’t need to coordinate your retirement plans; your will is likely to be quite simple, and you probably don’t need such a large emergency fund or a comprehensive insurance policy. But will you remain single forever? Maybe, but as the statistics show, many will want to eventually get married, at which point your finances will get more complicated, so keep that in mind. But for now, you’re single. What can you do differently compared to someone who’s married?
Save, Save, Save
Now is the time to save as much money as you can. The earlier you start, the higher the chances that you’ll start developing compounding gains that will make your future expenses that much easier to deal with. Avoid taking out high-interest lines of credit to buy toys that could end up in the shed once you start a family. Instead, live within your means, save, invest, and focus on your health. Your future self will probably thank you.
Social Security and Pensions
If you’re a firefighter, you probably won’t see anything from Social Security. That’s just how the system’s set up when you’ve got a pension. Instead, you have your pension, but that may not be enough to live off of. So, think about stacking up with a 457(b) or IRA on the side to cover all your bases. With a solid plan, your chances of hanging up your boots someday without stressing over your income will likely be increased.
Managing Your Tax Brackets
As a single filer, your tax brackets are tighter than those married, filing jointly. In 2024, the 22% tax bracket starts at $47,150. If you earn less than that, you’ll stay in the 12% bracket, saving more on taxes. If you earn more, you may want to look into ways to get below that higher tax bracket. We mentioned the IRA and 457(b) earlier. Contributions to the ‘Traditional’ variations of those accounts may allow you to deduct that contribution from your taxable income, potentially pushing you down a tax bracket. Plus, you’ll have a lower tax bill overall and thus more money for investing, right?
Legacy Planning while Single
When married, a spouse often gets assets by default when the other passes—like the house or bank accounts—but that’s not always the case, and it’s not guaranteed. For single firefighters, it’s even trickier. Without a will, the courts decide who gets what, and that process can be long, messy, and expensive for your loved ones. A will helps make everything clear, increasing the chances of avoiding unnecessary court battles and helping ensure your property goes exactly where you want it.
Financial Planning for Married Couples
Once you get married, everything changes. Your finances become intertwined with those of your spouse, impacting everything from your taxes, retirement plan, insurance, legacy plan, and more.
Joint Financial Goals
Marriage is awesome, but it’s no walk in the park—especially when it comes to money. Before you even tie the knot, talking about your financial and retirement goals is necessary. When do you both want to retire? What kind of lifestyle are you aiming for? Where do you see yourselves living? If you’re not on the same page, it’s tough to build a plan that works for both of you.
Also, your spouse needs to understand the risks that come with being married to a firefighter. Forced early retirements, injuries, or illnesses aren’t just possibilities—they’re part of the reality of this career. You probably hashed out the day-to-day risks early on at an emotional level, but now’s the time to tackle how those risks could impact your finances.
Social Security & Pension Strategies
If you’re married, Social Security opens the door to some unique options, though being a firefighter complicates things (more on that later on). One big perk is spousal benefits, where a spouse can claim up to 50% of the other’s Social Security benefits—great for couples where one partner earns significantly less. That’s great for marriages with only one working spouse. It’s not so simple for firefighter families, especially if one spouse stays home, and even if one spouse does contribute to Social Security, things aren’t that easy.
Here’s the catch for firefighters and other public-sector workers: the Government Pension Offset (GPO) can seriously reduce—or even wipe out—those spousal or survivor benefits. Why? Because if you’re part of a pension system that doesn’t pay into Social Security, the government offsets the Social Security benefits you or your spouse could receive. This rule catches a lot of people off guard, so you need to know how it applies to your family’s situation.
Let’s look at a couple of examples:
Marriage 1: One Firefighter, One Stay-at-Home Spouse
Jason is a firefighter covered by a pension system that doesn’t contribute to Social Security. Their spouse, Taylor, stayed home to care for the family and doesn’t qualify for their own Social Security benefits.
Jason and Taylor already know that Taylor won’t receive spousal benefits from Social Security since Jason doesn’t pay into the system. To make up for this gap, they’ve planned to:
- Maximize Jason’s pension by choosing a joint-and-survivor option at retirement to ensure Taylor receives income if Jason passes away.
- Supplement retirement savings with contributions to a 457(b) plan or IRA to build additional income streams beyond the pension.
The Result: They’re proactive about creating a financial safety net, ensuring Taylor is covered even without Social Security spousal benefits.
Marriage 2: One Firefighter, One Working Spouse Who Pays Into Social Security
Alex is a firefighter, and their spouse, Jamie, works a private-sector job and pays into Social Security. Jamie expects to receive their own Social Security benefits, and they assume Alex can claim spousal benefits based on Jamie’s work record when they retire.
Upon retirement, they discover that Alex doesn’t qualify for Social Security spousal benefits because of the GPO. The offset eliminates or significantly reduces any Social Security Alex could have received from Jamie’s work history. This comes as a surprise during retirement planning, leaving the couple scrambling to adjust their finances.
The Result: Jamie still receives their own Social Security benefits, but Alex misses out on spousal benefits due to the GPO. If they’d known earlier, they could have saved more or considered other options to close the gap.
Here’s what you can do to stay ahead:
- Know Your Numbers: Understand how much your pension pays out and how it impacts any Social Security your spouse might qualify for.
- Plan for Gaps: If the GPO eliminates or reduces Social Security benefits, you’ll need to lean on your pension and other retirement savings. Consider boosting your contributions to a 457(b) or IRA to fill the gap.
- Survivor Benefits: If you’re the higher earner, discuss how your pension and the GPO could impact your spouse’s income if something happens to you. You might need to adjust your pension payout options (e.g., a joint-and-survivor option) or consider life insurance as a backup.
Tax Efficiency
Filing jointly is often the smarter move for married couples because it increases the thresholds for lower tax brackets. Let’s look at the 22% tax bracket. For single filers, the 22% bracket starts at $47,701 in 2024. If you earn less than that, you fall into the 12% bracket. But as a married couple, let’s say one spouse earns $50,000, and the other earns $30,000. Combined, that’s $80,000—well below the joint 22% bracket threshold of $94,300. Even though one spouse earns more than the single filer’s threshold, filing jointly keeps your tax rate lower.
Legacy Planning
Estate planning is the thing you probably want to do least in your free time, but it’s a must if you’re married. Sure, your spouse usually gets the house or joint accounts by default, but that’s not guaranteed—and it doesn’t cover everything. What happens to your pension? What about savings accounts, vehicles, or any property in just your name? Without a plan, things can get messy fast.
The fix is simple: designate beneficiaries, write a will, and think about setting up a trust if needed. If one of you depends on the other’s income or pension, life insurance should be a serious consideration—it’s the backup plan you hope you’ll never need.
In Conclusion
Being a firefighter comes with unique challenges—Social Security gaps, pension decisions, and the risks that come with the job. But with the right approach, you can help make sure your retirement stays on track.
Start by knowing your numbers, setting goals, and tackling the things most people put off—like estate and tax planning. If you’re married, make sure your spouse’s finances are integrated with your own, especially when it comes to pensions and survivor benefits. And if you’re flying solo? You might want to use this time to save aggressively and get ahead.
The good news? You don’t have to figure it out alone. At Protection Red, we know the ins and outs of firefighter finances. Let’s build a plan that works for you—whether you’re rocking life solo or planning for two. Ready to get started? Click the button below!
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