What Is Coast FIRE (with graph and examples)

01/25/2026·8 min read

Coast FIRE is a version of the FIRE movement where you save aggressively early in your career so that your investments can grow to cover your retirement without additional contributions.

These early savings allow you to "coast" to traditional retirement age without needing to save more money along the way.

The Quick Explanation

Coast FIRE works by saving aggressively early in your career so your investments can grow to cover your retirement without additional contributions.

Typically this is achieved by saving a large portion of your income during your 20s and 30s. Once you reach your Coast FIRE number, you can stop contributing to retirement accounts and let your investments grow on their own.

From that point forward:

• You do not need to save more for retirement
• You only need to earn enough to cover your current expenses
• Your investments continue compounding until retirement

Coast FIRE relies on the assumption that future market growth alone can carry you to your retirement savings goals.

If you want to skip the explanation and see some numbers, check out our Coast Fire Calculator below.

How Coast FIRE compares to other FIRE strategies

Coast FIRE sits between traditional FIRE and more flexible variants like Barista FIRE.

• Traditional FIRE: You save until your investments can cover all expenses immediately
• Barista FIRE: Investments cover most expenses, part-time work covers the rest
• Coast FIRE: Investments are left untouched to grow, work covers all current expenses

Coast FIRE is best suited to those who are comfortable continuing to work until traditional retirement age, are disciplined with deferred gratification, and want to spend a larger portion of their income after reaching their Coast FIRE number.

If you want a direct comparison, see Coast FIRE vs Barista FIRE.

Why people choose Coast FIRE

Coast FIRE can support a lower stress lifestyle once your target is hit.

• Aggressive saving often requires long hours, high-pressure roles, or burnout. Coast FIRE allows you to step back once the hard part is done.

Coast FIRE supports more career flexibility so you can:

• Change careers
• Reduce hours
• Take lower-paying but more meaningful work
• Prioritize family or health

Coast FIRE gives you earlier lifestyle freedom.

• Instead of waiting decades for freedom, Coast FIRE spreads it across more of your life.

Important notes about Coast FIRE

Once you are "Coast FIREd" you are not actually retired. It simply means that your investment portfolio is large enough that it is projected to be enough to support your lifestyle once you hit your desired retirement age. There are some important things to consider about this.

Coast FIRE introduces a large degree of risk since reality doesn't always match the projections it relies upon.

• You may be required to draw on your investments early if there is an emergency or loss of income.
• Investment returns might not be as high as you anticipated.
• Your income requirements in retirement might be higher than originally planned (especially true if your lifestyle increases during your Coast FIRE years).

Because of these risks, it's important to be especially conservative in your calculations for Coast FIRE.

Many people will also continue some sort of savings while Coast FIREd. Even just 5% can provide enough of a buffer to mitigate this risk.

How much do you need for Coast FIRE?

To calculate your Coast FIRE number, you need to estimate some things:

2. The amount you need to cover your expenses in retirement
3. The expected rate of return on your investments until retirement
4. The withdrawal rate you plan to use in retirement
5. The age in which you plan on retiring

To calculate your retirement savings goal, you can use the formula:

Retirement Savings Goal = Annual Expenses / Withdrawal Rate

Once you have your retirement savings goal, you can use a coast FIRE calculator or spreadsheet to determine how much you need to have saved by your desired Coast FIRE age, based on your expected rate of return.

Since Coast FIRE introduces some risk, we will use some conservative assumptions:

• Withdrawal Rate: 3.5%
• Expected Rate of Return (real): 5%
• Retirement Age: 65
• Retirement Expenses: $60,000/year (today's dollars)

Pros and cons of Coast FIRE

Coast FIRE is a great option for many, but it is important to understand the trade-offs.

Pros

• Allows you more flexibility earlier
• Reduces pressure to save later in life
• Lets you enjoy more of your income now
• Supports career changes or lower-stress work

Cons

• You still need to work until traditional retirement age
• Relies on market growth to reach retirement goals
• Requires high discipline early on
• Less freedom than full FIRE or Barista FIRE
• May need to adjust plans if circumstances change

For many, the pros outweigh the downsides, especially if full retirement feels too extreme or uncertain.

Coast FIRE, summarized

Coast FIRE is a strategy where you save aggressively early in your career so that your investments can grow to cover your retirement without additional contributions. It offers more flexibility and lifestyle freedom earlier in life, but still requires working until traditional retirement age. Careful planning and conservative assumptions are key to successfully achieving Coast FIRE.

Not sure if Coast FIRE is right for you?

Consider these alternatives:

• Lean FIRE: Reach full independence faster by planning for lower expenses
• Full FIRE: Keep saving until you can fully retire without any work requirement

Use the compound interest calculator to model different savings scenarios and see how time affects your portfolio growth.

Written by

Caleb Elliott

Software engineer and personal finance writer documenting my own FIRE journey. I save ~50% of my income and build the tools I wish existed to help others reach financial independence faster.

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