As the worldwide phenomenon of ageing continues, retirees' spiritual and material requirements are receiving increasing attention. It is essential to utilize pensions, which serve as the most significant financial resource for retirees, in a reasonable manner to safeguard their later life's well-being. This study focuses on fire protection in Florida, USA, to investigate how different life expectancy groups should effectively invest their pensions. The investigation employs the FAMA three-factor model and incorporates the Sharpe ratio to simulate and appraise the investment outcomes. The investigation demonstrates that opting for an annual pension is the suitable option when a retiree has a lengthy life expectancy or aspires towards a dependable and cautious retirement. However, retirees with a pessimistic health status, those from regions with poor health conditions or those who want to lead a more adventurous lifestyle in their later years could benefit the most from taking a lump sum pension. This paper aims to provide individuals with references and advice on managing their pensions wisely and correctly to safeguard their financial security. Enterprises, government, and the state should consider providing sensible guidance to the vast retirement group. This paper requires some enhancements which include exploring specific occupations as well as the inadequate prediction of future investment portfolio returns by the FAMA three-factor model.