What is Coast FIRE?
The Stress-Free Path to Financial Freedom
Coast FIRE = Save enough early, stop saving, let compound interest do the rest
Coast FIRE in 30 Seconds
Coast FIRE is a financial milestone where you've invested enough that compound interest will grow your portfolio to your retirement target—without any additional contributions.
Save Aggressively Early
Build your nest egg while you have high earning years
Hit Your Coast Number
Reach the amount that will compound to your goal
Work for Living Expenses Only
No more saving required—just cover your current costs
⏰ The key insight: Time is your greatest asset. The earlier you start, the smaller your Coast FIRE number.
A Real-World Example
Let's see how Coast FIRE works with actual numbers:
Sarah
35 years old
Current Savings
$180,000
Expected Return
7% inflation-adjusted return
Retirement Age
67 years old
Time to Grow
32 years to grow
The Math
$180,000 × 1.07³² = $1,556,000
Sarah can stop saving for retirement today. She only needs to cover her living expenses until 67, and compound interest will handle the rest.
See What YOUR Numbers Look LikeCoast FIRE vs Other FIRE Types
Not all FIRE approaches are created equal. Here's how they compare:
| FIRE Type | Savings Rate | Target Retire Age | Lifestyle | Stress Level |
|---|---|---|---|---|
Traditional FIRE | 50-70% | 35-45 | Fully retire early | High |
Lean FIRE | 40-50% | 40-50 | Frugal retirement | Medium |
Fat FIRE | 50-70% | 45-55 | Luxurious retirement | High |
Barista FIRE | 30-40% | Flexible | Part-time work | Low |
Coast FIRE Recommended | 25-35% | 55-67 | Work, but no saving | Lowest |
💡 Coast FIRE is the only approach that lets you keep working at jobs you enjoy without the pressure of maximizing savings. You've already done the hard part.
How Coast FIRE Works — The Math
The Formula
Coast FIRE Number = FV ÷ (1 + r)ⁿ
FV = Future Value needed (Annual Expenses × 25)
r = Expected annual return (typically 7%)
n = Years until retirement
The 25x multiplier: Trinity Study (1998) — Derived from the 4% safe withdrawal rate: 100% ÷ 4% = 25x
4% safe withdrawal rate: William Bengen (1994) — First proposed in 'Determining Withdrawal Rates Using Historical Data'
Visualizing the Growth
Here's what $180,000 looks like over 32 years at 7% return:
Start
32 Years Later
That's 8.7x growth with zero additional contributions! 🚀
5 Advantages of Coast FIRE
Reduced Financial Stress
Stop racing to save 70% of your income. Once you've hit your Coast number, the pressure is off.
Career Flexibility
Switch to lower-paying but more fulfilling work. Take that nonprofit job or start a small business.
Better Work-Life Balance
No need to grind for aggressive early retirement. Enjoy your career without the savings obsession.
Time as Your Ally
Let compound interest do the heavy lifting while you focus on living.
Achievable for Most People
Unlike Fat FIRE, Coast FIRE is realistic for average income earners.
Important Considerations
Coast FIRE isn't perfect. Here are the risks to consider:
Market Volatility
A major crash early in your coast phase could impact your final number. Consider a buffer.
Inflation Uncertainty
The 7% real return assumption may be optimistic. Some advisors recommend using 5-6%.
Healthcare Costs
In the US, pre-65 healthcare is expensive. Factor this into your 'living expenses' budget.
Is Coast FIRE Right for You?
Ideal For
- People who enjoy working but hate the savings pressure
- Those who want to pursue passion projects or lower-paying careers
- Workers seeking better work-life balance without full retirement
- Young professionals who can start early and maximize time
- Anyone burned out by aggressive FIRE strategies
May Not Be Suitable For
- Those who want to fully retire before 50
- People with very high retirement spending goals
- Those uncomfortable with market uncertainty over long periods
Your Next Steps
Ready to start your Coast FIRE journey?
Frequently Asked Questions
Coast FIRE means you've saved enough that you don't need to contribute more to retirement—you just need to cover living expenses. Barista FIRE means working part-time specifically to get benefits (like health insurance) while drawing down some retirement savings. With Coast FIRE, you're not touching your investments at all.
It depends on your age, retirement goal, and expected returns. A 30-year-old targeting $1M at 65 needs about $128,000 (assuming 7% returns). A 40-year-old needs about $252,000. Use our calculator to find your exact number.
Most calculations use 7% inflation-adjusted returns, based on historical S&P 500 performance. For more conservative planning, use 5-6%. The lower the rate, the higher your Coast FIRE number. Our calculator lets you adjust this assumption.
This is the 'sequence of returns' risk. A crash early in your coast phase hurts more than one later. Mitigate this by: (1) Building a buffer above your Coast number, (2) Staying flexible with retirement age, (3) Being willing to contribute small amounts during major downturns.
Absolutely! Couples often reach Coast FIRE faster due to combined savings and shared expenses. Check our Couples Calculator to see how dual incomes affect your timeline.
They're similar but not identical. Slow FIRE typically means saving at a moderate rate over a longer period. Coast FIRE specifically means reaching a milestone where additional savings are optional. You could do slow FIRE and never actually 'coast'—Coast FIRE is the destination, slow FIRE is a journey.
"It's not that I don't want to work hard—I just want to work hard for myself."
May you reach the shore soon 🌅